Ainos Announces Placement Of Initial $3M Tranche Of $10M Private Placement; Proceeds To Fund Company's Clinical Trials, Commercial Product Launch, And Working Capital; Initial Conversion Price Set At $1.50 Per Share

Proceeds to fund company's clinical trials, commercial product launch, and working capital
Initial conversion price set at $1.50 per share

SAN DIEGO, CA / ACCESSWIRE / September 25, 2023 / Ainos, Inc. (NASDAQ:AIMD, AIMDW))))) ("Ainos", or the "Company"), a diversified healthcare company focused on the development of AI-powered point-of-care testing, low-dose interferon therapeutics, and synthetic RNA-driven preventative medicine, announced today that it has entered into a securities purchase agreement with Lind Global Fund II LP, an investment fund managed by The Lind Partners, a New York based institutional fund manager (together the "Investor") to issue and sell the initial $3 million tranche of a total anticipated $10 million private placement with $2 million funded at closing and $1 million to be funded subject to shareholder approval, effective registration statement and conditions specified in the agreement.

The investment is in the form of a Senior Secured Convertible Promissory Note (the "Note"). The Note has an 18-month maturity. In addition, the Note will be convertible into Ainos' shares of common stock at an initial conversion price equal to $1.50 per share and subject to adjustment as further specified in the Note. The Note will be repayable in cash upon maturity. Prior to maturity, the Investor can convert to common stock at conditions specified in the agreement, following the earlier of (i) 90 days from closing or (ii) effective registration statement. The Note contains certain prepayment options and participation rights. The private placement is subject to customary closing conditions. As part of the investment, the Investor was also granted five-year warrants equal to 75% of the funded amount at an initial exercise price equal to $0.90 per share of common stock, subject to adjustment.

Maxim Group LLC is acting as the lead placement agent for the private placement. Brookline Capital Markets, a division of Arcadia Securities, LLC is acting as the co-placement agent for the private placement.

Ainos has agreed to file a registration statement registering for the resale of the shares of common stock issuable upon the conversion of the Note and upon the exercise of the warrants. Upon the shareholder approval and effectiveness of the resale registration statement, and subject to the satisfaction of certain conditions, additional tranches of funding may be provided by mutual agreement of the Investor and the Company in the aggregate amount up to $7.0 million. The Investor will be entitled to receive an additional warrant equal to 75% of the increased funding amount with an exercise price equal to 125% of the average of the ten (10) daily VWAPs during the ten (10) trading days prior to the subsequent closing date.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Ainos plans to use the proceeds from this financing to fund clinical trials, commercial product launch, and working capital.