Item 1.01 Entry into a Material Definitive Agreement.
On September 21, 2020, SunHydrogen, Inc. (the “Company”)
entered into a purchase agreement (the “Purchase Agreement”) with GHS Investments, LLC (“GHS”). Under the
Purchase Agreement, the Company may sell, in its discretion (subject to the terms and conditions of the Purchase Agreement) up
to an aggregate of $4,000,000 of common stock to GHS.
The Company has the right, in its sole discretion, subject to the
conditions and limitations in the Purchase Agreement, to direct GHS, by delivery of a purchase notice from time to time (a “Purchase
Notice”) to purchase (each, a “Purchase”) over the 6-month term of the Purchase Agreement, a minimum of $10,000
and up to a maximum of $400,000 (the “Purchase Amount”) of shares of common stock (the “Purchase Shares”)
for each Purchase Notice (provided that, the Purchase Amount for any Purchase will not exceed two times the average of the daily
trading dollar volume of the common stock during the 10 business days preceding the purchase date). The number of Purchase Shares
the Company will issue under each Purchase will be equal to 112.5% of the Purchase Amount sold under such Purchase, divided by
the Purchase Price per share (as defined under the Purchase Agreement). The “Purchase Price” is defined as 90% of the
lowest end-of-day volume weighted average price of the common stock for the five consecutive business days immediately preceding
the purchase date, including the purchase date. The Company may not deliver more than one Purchase Notice to GHS every ten business
days, except as the parties may otherwise agree.
The Purchase Agreement prohibits the Company from directing GHS
to purchase any shares of common stock if those shares, when aggregated with all other shares of the Company’s common stock
then beneficially owned by GHS and its affiliates, would result in GHS and its affiliates having beneficial ownership, at any single
point in time, of more than 4.99% of the then total outstanding shares of the Company’s common stock.
Other than as described above, there are no trading volume requirements
or restrictions under the Purchase Agreement. The Company will control the timing and amount of any sales of its common stock to
GHS. The Company may at any time in its sole discretion terminate the Purchase Agreement.
If an event of default (as defined under the Purchase Agreement)
(all of which are outside the control of GHS) occurs and is continuing, the Company may not deliver to GHS any Purchase Notice.
The Company will pay a finder’s fee to J.H. Darbie & Co.,
Inc. of 4% of the net proceeds the Company receives from sales of its common stock to GHS under the Purchase Agreement.
The shares were offered, and will be issued, pursuant to the Prospectus
Supplement, dated September 21, 2020, to the Prospectus included in the Company’s Registration Statement on Form S-3 (Registration
No. 333-239632) filed with the Securities and Exchange Commission on July 2, 2020.
Sichenzia Ross Ference LLP, counsel to the
Company, has issued an opinion to the Company regarding the validity of the securities to be issued in the offering. A copy of
the opinion is filed as Exhibit 5.1 to this Current Report on Form 8-K.
The foregoing description of the Purchase Agreement
is qualified in its entirety by reference to Exhibit 10.1 attached hereto and incorporated herein by reference.