false
0001883788
0001883788
2025-08-07
2025-08-07
0001883788
DHAI:ClassCommonStockMember
2025-08-07
2025-08-07
0001883788
DHAI:WarrantsMember
2025-08-07
2025-08-07
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 7, 2025
DIH
HOLDING US, INC.
(Exact
name of Registrant as Specified in Its Charter)
| Delaware |
|
001-41250 |
|
98-1624542 |
(State
or Other Jurisdiction
of
Incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
77
Accord Park Drive;
Suite
D-1
Norwell,
Massachusetts |
|
|
|
02061 |
| (Address
of Principal Executive Offices) |
|
|
|
(Zip
Code) |
Registrant’s
Telephone Number, Including Area Code: 877 944-2200
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
| |
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| |
|
|
| |
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
|
|
| |
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| |
|
|
| |
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
| Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
| Class
A Common Stock |
|
DHAI |
|
The
Nasdaq Stock Market LLC |
| Warrants |
|
DHAIW |
|
The
Nasdaq Stock Market LLC |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
| Item
1.01 | Entry
into a Material Definitive Agreement. |
On
August 7, 2025, DIH Holding US, Inc., a Delaware corporation (the “Company”), entered into a Securities Purchase Agreement
(the “Purchase Agreement”) with the purchasers named therein (the “Purchasers”), pursuant to which the
Company sold on August 7, 2025, in a private placement, an aggregate of $2,222,222 in principal amount of 8% Original Issue Discount
Senior Secured Convertible Debentures (the “Debentures”), initially convertible at a conversion price of $0.25 (the
“Conversion Price”). Such Conversion Price is subject to adjustment in a number of circumstances. The shares of Common
Stock issuable upon conversion of the Debentures are collectively referred to as the “Conversion Shares”. The Debentures
have an aggregate face value of $2,222,222 and were issued with an original issue discount of $222,222. The Debentures have maturity
date of September 21, 2026 (the “Maturity Date”) and an interest rate of 8% per annum payable monthly on the first
business day of each month following the first year anniversary of the issuance of the Debentures. No interest will be payable or accrue
during the first year after issuance.
Provided
that no Event of Default has occurred or is continuing, and at least 33% of the principal amount of the Debentures has either previously
been repaid or converted in accordance with the terms of the Debenture, the Company may elect, by notice to the holder of the Debentures,
to extend the Maturity Date by six (6) months upon the payment of six (6) months’ interest on the then-outstanding principal amount.
Such prepaid interest shall be credited against subsequent interest payments which may become due pursuant to the terms hereof. Further,
the Monthly Redemption Amount (as defined below) will be adjusted to correspond to the extended Maturity Date.
Redemption
Provisions
Optional
Redemption at the Election of the Company. The Company may provide an irrevocable election to redeem some or all of the then
outstanding principal amount of the Debenture (in minimum increments of $200,000 unless the outstanding principal amount is less
than $200,000) for cash. An optional redemption may only be made if the “Equity Conditions” are satisfied. The
“Equity Conditions” include, among other things, that a resale registration statement has been filed with, and been
declared effective by, the SEC, the Company’s common stock is listed on a trading market, there is no existing event of
default under the Debenture, etc.
Monthly
Redemptions. Beginning on October 1, 2025, the Company will be required to redeem an amount of the Debentures equal to
$170,940.17, together with all other amounts owed to the Purchaser (the “Monthly Redemption Amount”) and the date
on which such Monthly Redemption is to occur the “Monthly Redemption Date.” Such amount shall be payable in cash.
In lieu of a cash redemption payment the Company may elect to pay all or part of a Monthly Redemption Amount in shares of Common Stock
based on a conversion price equal to the lesser of (i) the then Conversion Price and (ii) 90% of the average of the five lowest VWAPs
for the 10 consecutive Trading Days ending on the trading day that is immediately prior to the applicable Monthly Redemption Date subject
to the limitations set forth in the Debenture
Conversion
Provisions
Conversion
at the Option of the Holder. At the election of the holder, each Debenture is convertible, in whole or in part, at any time and
from time to time at the Conversion Price. The Conversion Price is subject to adjustment for stock dividends, stock splits, and certain
other corporate events. In addition, the Conversion Price shall be adjusted if the Nasdaq Official Closing Price on the first trading
day following stockholder approval of the required matters (the “Shareholder Approval”) is less than $0.25.
Notwithstanding the foregoing, the Company will not effect any conversion under the Debentures to the extent that such conversion would
cause the holder’s beneficial ownership of the Common Stock to exceed 9.99% of the Company’s issued and outstanding Common
Stock.
Warrants
In
connection with the purchase of the Debentures, each Purchaser received warrants to purchase shares of Common Stock (the “Warrants”)
equal to 100% of such Purchaser’s Conversion Shares or an aggregate of 8,888,888 Warrants. Each Warrant has an exercise
price equal to the Conversion Price, is not exercisable until February 1, 2026 and has a five year term.
Registration
Rights Agreement
In
connection with the Placement, the Company and the Purchasers entered into a Registration Rights Agreement (the “Registration Rights
Agreement”) pursuant to which the Company agreed to register for resale (i) the Conversion Shares, (ii) the Warrant Shares, (iii)
all shares of Common Stock issued in payment for principal or interest on the Debentures, and (iv) any securities issued or then issuable
upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing (together, the
“Registrable Securities”). Under the terms of the Registration Rights Agreement, the Company is required to file a registration
statement (the “Registration Statement”) with the SEC covering the resale of the Conversion Shares and the Warrant Shares
on or before the 10th calendar day following the filing of the Company’s Annual Report on Form 10-K for the fiscal year ending
March 31, 2024 and to use its commercially reasonable efforts to cause such registration statement to be declared effective by the SEC
by the 120th calendar day, or 150th day in the event of SEC review, following the effective date of the Registration Rights Agreement
and use its best efforts to keep such registration statement continuously effective until the date that all Registrable Securities covered
by such registration statement (a) have been sold, thereunder or pursuant to Rule 144, or (b) may be sold without volume or manner-of-sale
restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information
requirement under Rule 144. The Company will be obligated to pay certain liquidated damages to the Purchasers if the Company fails to
file such Registration Statement when required, fails to cause such Registration Statement to be declared effective by the SEC when required,
or fails to maintain the effectiveness of such Registration Statement pursuant to the terms of the Registration Rights Agreement.
Voting
Agreement
In
connection with the transaction, Jason Chen entered into a voting agreement (“Voting Agreement”) with the Purchasers, pursuant
to which he agreed to vote any shares of the Company’s capital stock over which he has voting control, in favor of all matters
submitted relating to Shareholder Approval.
Other
Provisions of the Purchase Agreement
The
Purchase Agreement contains customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification
obligations of the Company, other obligations of the parties, and termination provisions.
Pursuant
to the Purchase Agreement, the Company has agreed that, subject to certain exceptions, it will not, for a period of ninety (90) days
after the date the registration statement to be filed has been declared effective, neither the Company nor any Subsidiary shall (i) issue,
enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents
(other than in connection with payment of the consideration for a business acquisition in the form of such securities) other than an
Exempt Issuance or (ii) file any registration statement or any amendment or supplement thereto, in each case other than as contemplated
pursuant to the Registration Rights Agreement and to register the resale of certain securities issued in the Business Combination. From
the date of the Purchase Agreement until such time as the Debentures have been repaid, the Company shall be prohibited from effecting
or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents
(or a combination of units thereof) involving a Variable Rate Transaction. Unless Shareholder Approval has been obtained and deemed effective,
neither the Company nor any Subsidiary shall make any issuance whatsoever of Common Stock or Common Stock Equivalents which would cause
any adjustment of the Conversion Price to the extent the holders of Debentures would not be permitted, pursuant to Section 4(e) of the
Debentures, to convert their respective outstanding Debentures and exercise their respective Warrants in full, ignoring for such purposes
the other conversion or exercise limitations therein. Any Purchaser shall be entitled to obtain injunctive relief against the Company
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.
The
offering is expected to result in gross proceeds to the Company of approximately $2.0 million. The net proceeds to the Company from the
Offering are expected to be approximately $1.9 million, after deducting estimated offering expenses payable by the Company. The
Company intends to use the proceeds for working capital and general corporate purposes.
Forms
of the Purchase Agreement, the Debenture, the Warrant, the Registration Rights Agreement and the Voting Agreement are attached as Exhibits
10.1, 4.1, 4.2, 10.2 and 10.3, respectively. The descriptions of the terms of these agreements are not intended to be complete and are
qualified in their entirety by reference to such exhibits.
| Item
2.03 | Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The
information required by this Item 2.03 relating to the Debentures is set forth under Item 1.01 of this Current Report on Form 8-K and
is incorporated herein by reference.
| Item
3.02 | Unregistered
Sales of Equity Securities |
The
description of the issuance of the Debentures and the Warrants under Item 1.01 of this Form 8-K is incorporated by reference herein.
The
Debentures and the Warrants are being sold pursuant to an exemption from registration under the Securities Act of 1933, as amended (the
“Securities Act”), available under Section 4(a)(2) and Rule 506(b) of Regulation D promulgated thereunder. The Conversion
Shares and the Warrant Shares will be issued pursuant to the same exemption or pursuant to the exemption provided by Section 3(a)(9)
of the Securities Act. Accordingly, the securities issued in the private placement may not be offered or sold in the United States except
pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and
such applicable state securities laws.
| Item
9.01 |
Financial
Statements and Exhibits. |
(d)
Exhibits.
Exhibit
No. |
|
Description |
| 4.1 |
|
Form of Debenture |
| 4.2 |
|
Form of Warrant |
| 10.1 |
|
Securities Purchase Agreement |
| 10.2 |
|
Form of Registration Rights Agreement |
| 10.3 |
|
Form of Voting Agreement |
| 104 |
|
Cover
page interactive data file |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
| |
|
|
DIH
HOLDING US, INC. |
| |
|
|
|
| Date: |
August
8, 2025 |
By: |
/s/
Jason Chen |
| |
|
|
Jason
Chen
Chief
Executive Officer and Chairman |
