On June 26, 2020, KBL Merger Corp. IV entered into a Securities Purchase Agreement (the “SPA”) whereby it issued to two institutional investors secured convertible promissory notes in the aggregate principal amount of $3,601,966.28 (collectively, the “Notes”) for an aggregate purchase price of $3,407,521.97

• The Notes are subject to 10% original issue discount, have a term of eight months, and accrue interest at the rate of 10% per annum
• The Notes are all initially convertible into the Company’s common stock at a per share conversion price equal to $5.28
• Beginning ninety (90) days following the Company’s completion of its contemplated business combination, the conversion price will equal the lowest VWAP of the Company’s Common Stock during the five (5) trading day period ending on the trading day immediately prior to the conversion date, but in no event will the conversion price be lower than $2.00
• In connection with the closing of the transactions contemplated by the SPA, the Company issued restricted shares of Common Stock to the two institutional investors in the aggregate amount of 650,000 shares (the “Commitment Shares”)

Upon the second closing pursuant to the SPA, upon certain conditions being satisfied, the Company will issue one of the institutional investors referenced above Series A Preferred Stock of the Company (“Preferred Stock”) for an aggregate purchase price of $3,000,000

• Dividends shall be payable on the Preferred Stock at a rate of 10% per annum
• The Preferred Stock shall be convertible into Common Stock at a conversion price of $5.28 per share
• Upon any conversion, a Make-Whole Amount (as defined in the Certificate of Designation of the Preferred Stock) shall be due with respect to each share of Preferred Stock converted
• At any time following the three (3) month anniversary of the Business Combination, the holder of the Preferred Stock has the right to force the Company to redeem all or any portion of the Preferred Stock then owned by the holder in cash

Beginning on the eleventh (11) trading day following the Business Combination, if certain conditions are met, including, but not limited to,

• the closing sale price of the Common Stock exceeds $6.00 throughout a certain measuring period,
• certain equity conditions are satisfied,
• the daily average trading volume for the prior five (5) consecutive trading days exceeds of $80,000 per trading day,
• and the shares of Common Stock subject to the Company’s conversion right are the subject of a then effective registration statement,

the Company shall have the right to require the holder to convert an amount of the purchase price of the Preferred Stock not to exceed $1,000,000 in the aggregate and not to exceed $100,000 during any five (5) consecutive trading days (but in no event more than the lesser of (I) two (2) times the daily average trading volume for the prior ten (10) consecutive trading days, and (II) all of the Conversion Amount then remaining hereunder), into freely tradeable shares of Common Stock at the conversion price then in effect

On June 23, 2020, the Company received a letter from a purported shareholder of Leo claiming certain allegedly material omissions in the preliminary proxy statement filed on June 22, 2020 by Leo in connection with the transactions contemplated by the Business Combination Agreement

• While Leo believes that the disclosures set forth in the Proxy Statement comply fully with applicable law, in order to moot the plaintiff’s disclosure claims in the Shareholder Letter, to avoid nuisance, cost and distraction, and to preclude any efforts to delay the closing of the Business Combination, Leo has determined to voluntarily supplement the Proxy Statement with Supplemental Disclosures
• Leo specifically denies all allegations in the Shareholder Letter that any additional disclosure was or is required
• Leo believes the Shareholder Letter is without merit
• Supplemental Disclosures relate to the section "Background of the Business Combination"

All proposals passed

• Business Combination Proposal
  • FOR: 5,834,185
  • AGAINST: 1,000
• In connection with the Special Meeting, stockholders elected to redeem 852 shares of the Company’s Class A common stock
• The amount remaining in the trust account will be approximately $31.03 million

Meeting to be held at 10:00 a.m. EST on August 4, 2020

Meeting Agenda

• To elect James Anderson to serve on the Board of Directors of the Company as a Class A director until the 2023 annual meeting of stockholders of the Company or until his successor is duly appointed and qualified
• To transact any other business as may properly be presented at the Annual Meeting or any adjournment thereof

Charter extended through 10/2/2020

• FOR: 5,989,537
• AGAINST: 0
• In connection with this vote, the holders of 500 ordinary shares of the Company exercised their right to convert their shares into cash at a conversion price of approximately $10.56 per share, for an aggregate conversion amount of $5,280

Separate trading to commence 7/6/2020