Volcon, Inc has entered into a securities purchase with certain institutional investors for senior non-convertible notes in an aggregate principal amount of $2,942,352 and five-year warrants to purchase approximately 10,100,000 shares on May 20, 2024. The notes will be the senior unsecured obligations of the company and were issued with an original issue discount of approximately 15%. The notes will bear no interest unless an event of default has occurred, upon which interest accrues at 10% per annum.

The notes will mature on the one-year anniversary of the issuance date. The five-year warrants to purchase approximately 10,100,000 shares of Company common stock with an exercise price of $0.29 per share. The issuance is pursuant to exemption provided under Regulation D.