Youlife announces up to $12 million convertible note offering
YOUL•Youlife Group agreed to issue a $3 million 9% senior original issue discount convertible note in a registered direct offering, with additional notes of up to $9 million subject to mutual consent. The initial note is expected to generate about $2.7 million in gross cash proceeds.
1. Note offering terms
The initial note has a $2.73 million subscription amount and matures 12 months after issuance. It bears no interest before an event of default, and an additional 2% original issue discount will be paid in shares.
2. Use of proceeds
Youlife expects approximately $2.7 million in gross cash proceeds from the initial note and plans to use net proceeds for working capital and general corporate purposes. Additional convertible notes of up to $9 million could bring total principal to $12 million, subject to mutual consent.
