Ainos (AIMD) Receives $1.75M Follow-On Funding

Ainos, Inc. (NASDAQ: AIMD, AIMDW) ("Ainos", or the "Company") announced today that it has placed an additional financing with Lind Global Fund II LP, an institutional investment fund managed by The Lind Partners (together the "Investor"). The funding amount is up to $1.75 million, with $875,000 funded at closing and $875,000 to be funded subject to effective registration statement and conditions specified in the agreement.

"We plan to use the proceeds to fund programs planned for the first half of 2024, including preparation work for IND applications for VELDONA human drug candidates and advancing co-development of a volatile organic compound (VOC) sensing platform, powered by AI Nose technology, in collaboration with NISD and Inabata," said Chun-Hsien Tsai, Chairman and CEO.

The increased funding is in the form of amendment to a Senior Secured Convertible Promissory Note (the "Note") maturing on March 28, 2025, with extension option specified in the agreement. The Note will be convertible into Ainos' shares of common stock at an initial conversion price equal to $7.50 per share, reverse-split adjusted, 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. 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 $2.16 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. Subject to the satisfaction of certain conditions, additional tranches of funding may be provided by mutual agreement of the Investor and the Company. 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.

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