Nature's Miracle Holding Inc. Announces Up to $2,000,000 Financing

Rhea-AI Summary

Nature's Miracle Holding (NMHI) has secured financing of up to $2,000,000 from Big Lake Capital, , with an initial funding of $600,000 received on April 11, 2025. The financing comes through a Convertible Promissory Note with a one-year term and 10% monthly interest rate.

The note holder can convert the funded amount plus accrued interest into common stock at $0.198 per share (110% of the closing price on April 11, 2025). Additionally, the investor will receive warrants to purchase up to 10,010,101 shares at an exercise price of $0.198. Notably, Big Lake Capital is controlled by Tie "James" Li, who serves as NMHI's Chairman and CEO.

Positive

• Secured immediate funding of $600,000
• Access to additional $1.4 million in potential financing
• Financing from company insider demonstrates management confidence

Negative

• High 10% monthly interest rate increases debt service costs
• Potential dilution from conversion of notes and exercise of warrants
• Related party transaction with CEO-controlled entity raises governance concerns

ONTARIO, Calif., April 14, 2025 /PRNewswire/ -- Nature's Miracle Holding Inc. (NMHI) ("Nature's Miracle" or the "Company"), a leader in vertical farming technology, today announced that on April 11, 2025, that it has successfully arranged financing with Big Lake Capital, LLC (the "Investor") in the amount of up to $2,000,000 with initial funding of $600,000.  Big Lake Capital, LLC is controlled by Tie "James" Li who is our Chairman and CEO.

Pursuant to the Convertible Promissory Note signed on April 11, 2025, between the Company and Investor, the Investor shall lend to the Company for up to $2,000,000 with the initial tranche of $600,000 which was funded on April 11, 2025. Terms include interest rate of 10% payable monthly and a term of one year. The investor can choose to convert any amount funded plus accrued interest is convertible into shares of common stock, par value $0.0001 per share, of the Company (the "Common Stock") at a conversion price equal to $0.198 or 110% of the closing price of the Common Stock on April 11, 2025, the date of initial funding.  As additional consideration, the Investor shall also receive warrants to purchase up to 10,010,101 shares of Common Stock, with an exercise price of $0.198.

About Nature's Miracle Holding Inc.

Nature's Miracle (www.Nature-Miracle.com) is a growing agriculture technology company providing products and services to growers in the Controlled Environment Agriculture ("CEA") industry in the U.S.  The Company's Common Stock trades on the OTC Markets Group, Inc. ("OTC") under the symbol "NMHI".

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: the intended use of proceeds from the offering; successful launch and implementation of Nature's Miracle's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in Nature's Miracle's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; Nature's Miracle's ability to develop and launch new products and services; Nature's Miracle's ability to successfully and efficiently integrate future expansion plans and opportunities; Nature's Miracle's ability to grow its business in a cost-effective manner; Nature's Miracle's product development timeline and estimated research and development costs; the implementation, market acceptance and success of Nature's Miracle's business model; developments and projections relating to Nature's Miracle's competitors and industry; and Nature's Miracle's approach and goals with respect to technology.

These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on the OTC; changes in applicable laws or regulations; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which Nature's Miracle's operates; the risk that Nature's Miracle's and its current and future collaborators are unable to successfully develop and commercialize Nature's Miracle's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that Nature's Miracle's is unable to secure or protect its intellectual property; the possibility that Nature's Miracle's may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in Nature's Miracle's filings from time to time with the SEC.

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SOURCE Nature's Miracle Holding Inc.

FAQ

What are the key terms of NMHI's $2 million financing announced on April 14, 2025?

The financing includes a 10% monthly interest rate, one-year term, and conversion rights at $0.198 per share, with an initial $600,000 funding received.

How many warrants were issued in NMHI's April 2025 financing deal?

The investor received warrants to purchase up to 10,010,101 shares of common stock at an exercise price of $0.198.

What is the conversion price for NMHI's April 2025 convertible note?

The conversion price is $0.198, which represents 110% of the common stock closing price on April 11, 2025.

Who is the investor in NMHI's $2 million financing arrangement?

Big Lake Capital, , controlled by NMHI's Chairman and CEO Tie "James" Li, is the investor.