Material Agreement Form 8 K

Item 1.01

Entry into a Material Definitive Agreement.

On September 16, 2024, Pure Bioscience, Inc. (the "Company") entered into a Note Purchase Agreement (the "Purchase Agreement") with certain accredited investors ("Lenders") pursuant to which the Company issued the Lenders convertible promissory notes (the "Notes", collectively with the Note Purchase Agreement, the "Notes Documents") with an aggregate principal balance of $500,000 (the "Private Placement").The Notes Documents provide for subsequent closings for an aggregate offering size of $3.0 million in principal balance.

The Notes Documents provided that the interest to the Lender shall accrue at the rate of 7.88%, compounded annually. The Maturity Date (as defined in the Notes) of the Notes is the third-year anniversary of the date of issuance, or such earlier date as the Notes provide.

Conversion. All or any portion of the principal amount of the Note, plus accrued and unpaid interest, is convertible at any time, in whole or in part, at a Lender's or the Company's option, into shares of the Company's common stock at a conversion price equal to the 30-day volume-weighted average price of the Company's common stock as reported on the market or exchange on which the Company's common stock is listed or quoted for trading (the "VWAP") on the date of conversion on the last trading day prior to the date of conversion, provided that such conversion price is at least $0.095 per share and less than or equal to $0.175 per share, subject to certain customary adjustments. Additionally, at any time following September 16, 2025, the holders of a majority of the outstanding principal balance under the Notes may elect specified in writing to convert all of the Notes at a conversion price equal to the VWAP, provided that the conversion price is equal to at least $0.095 per share, subject to certain customary adjustments.

Further, in the event of certain corporate transactions, all outstanding principal and unpaid accrued interest due on such Notes shall be automatically converted into conversion shares on the trading day immediately prior to the closing date of such corporate transaction. The number of shares to be issued upon such conversion shall be based on the VWAP on the last trading day prior to the public announcement of the execution of the definitive documents with respect to such transaction.

Events of Default. The Notes Documents provide for certain events of default that are typical for a transaction of this type, including, among other things, default in the payment of principal or interest for more than 30 days, the Company's making an assignment for the benefit of creditors, within 15 days after the commencement of bankruptcy proceedings against the Company, or breach of certain covenants described below.

Covenants. The Company will be subject to certain customary covenants regarding the current public information, reservation of adequate share reserve, and maintenance of intellectual property rights, among other customary matters.

Mr. Tom Y. Lee, a member of the Company's Board of Directors (the "Board") invested $500,000 in the Private Placement, through affiliates or directly. The disinterested members of the Board approved the Private Placement.

Additional Information

The form of Note and Note Purchase Agreement are attached hereto as Exhibit 4.1 and 10.1, respectively, and are incorporated herein by reference. The foregoing description of the Private Placement and the documentation related thereto does not purport to be complete and is qualified in its entirety by reference to such exhibits.

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