On September 27, 2022, Nascent Biotech Inc. (the "Company") reported that entered into an agreement with YA II PN, Ltd. ("YA II"), an unrelated third party. YA II has already loaned the Company $1,000,000 (Filing, 8-K, Nascent Biotech, SEP 27, 2022, View Source [SID1234621510]). The third tranche of $500,000.00 will be paid at Closing of this transaction. In connection with the loan, the Company is issuing YA II its third Convertible Debenture (the "Third Debenture"). The Third Debenture is for $500,000.00, has a maturity date of one year and is due on September 27, 2023. The interest rate is six percent (6%) per annum. The Debenture may be converted at the lesser of $0.30 per share or eighty percent (80%) of the lowest VWAP of the Company’s common stock for ten consecutive trading days immediately prior to the conversion date. The Debenture may be prepaid in accordance with the terms set forth in the Debenture. The Debenture also contains certain representations, warranties, covenants, and events of default including, among other things, if the Company becomes delinquent in its periodic report filings with the Securities and Exchange Commission (the "SEC"). If an event of default occurs, the amount of the principal and interest rate due under the Debentures increases.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

YA II will not affect any conversion which will result in its holding more than 9.99% of our common stock. The Debenture provides for certain penalties for failure to timely deliver stock and contains other protective provisions for YA II. As required, the Company filed its Registration Statement on Form S-1 which was declared effective on September 26, 2022. As required under the terms of this financing, to date, $1,500,000 of the total proposed loan amount of $1,500,000 principal amount of the Debenture has been received.