Material Agreement - Form 8-K

Item 1.01. Entry into a Material Definitive Agreement.

As previously reported on the Current Report on Form 8-K filed on April 27, 2023 with the Securities and Exchange Commission (the "SEC"), Novo Integrated Sciences, Inc. (the "Company") entered into a securities purchase agreement (the "SPA"), dated April 26, 2023, with RC Consulting Group LLC in favor of SCP Tourbillion Monaco or registered assigns (the "Holder"), pursuant to which the Company issued an unsecured 15-year promissory note to the Holder (the "Note") with a maturity date of April 26, 2038, in the principal sum of $70,000,000, which amount represents the $57,000,000 purchase price plus a yield (non-compounding) of 1.52% (zero coupon) per annum from the issue date.

The Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, and breach of provisions of the SPA or the Note. Upon the occurrence of any Event of Default (as defined in the Note), the Note is to become immediately due and payable, and the Company will pay to the Holder, in full satisfaction of its obligations thereunder, an amount equal to the principal amount then outstanding plus accrued interest (including any default interest) through the date of full repayment multiplied by 125%, as well as costs, including, without limitation, legal fees and expenses, of collection, all without demand, presentment or notice.

As previously reported on the Company's Current Report on Form 8-K, filed with the SEC on February 15, 2024, the Company received a notification letter (the "Notification Letter") from The Nasdaq Stock Market, LLC ("Nasdaq") on February 9, 2024, indicating that the Company was not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the "Minimum Bid Price Requirement").

According to the SPA, the Company's non-compliance with the Minimum Bid Price Requirement constituted an Event of Default under the terms of the SPA and Note.

Also as previously reported on the Company's Current Report on Form 8-K filed with the SEC on February 20, 2024, the Company and the Holder entered into a Limited Waiver (the "Initial Waiver") exempting any determination of non-compliance associated with the Minimum Bid Price Requirement, and is solely related to any notice of deficiency in accordance with the Minimum Bid Price Requirement but does not extend to any delisting associated with the Minimum Bid Price Requirement under the SPA and the Note. Nothing in the Initial Waiver is be deemed to: (1) constitute a waiver, modification or amendment of any other term, provision or condition of the SPA or any other instrument or agreement referred to therein; (2) prejudice any right or remedy that the Holder may now have or may have in the future under or in connection with the SPA or any other instrument or agreement referred to therein, except as otherwise set forth therein.

All other provisions and conditions of the SPA and any other documents related to the SPA remained in full force and effect.

As previously reported on the Company's Current Report on Form 8-K filed on March 18, 2024 with the SEC, on March 18, 2024, the Company entered into the Assignment of Security Purchase Agreement and Promissory Note (the "Assignment") with RC Consulting Group LLC and RC Consulting Consortium Group LLC. Pursuant to the terms of the Assignment, RC Consulting Group LLC assigned and transferred to RC Consulting Consortium Group LLC all of RC Consulting Group LLC's right, title, claim and interest in and to the SPA and the Note, and RC Consulting Consortium Group LLC agreed to assume the same. Except as set forth in the Assignment, the terms of the SPA and the Note, each as amended from time to time, including by the Initial Waiver, remain in full force and effect.