Basanite Inc. announced that it has entered into definitive securities purchase agreements with 17 accredited investors for a private placement of 19,398,144 units at a price of $0.275 per unit for gross proceeds of $5,334,490 on August 17, 2021. Each unit consists of one common share, one warrant A, and one warrant B of the company. Each warrant A and warrant B is exercisable immediately, into one common share of the company at an exercise price of $0.33 per share for a period of 5 years. The company issued securities pursuant to the exemptions from registration provided by Rule 506(b) of Regulation D. The warrant A and warrant B are otherwise identical, except the warrant B will be subject to a call provision as follows, in the event that, at any time following the closing, the price of the publicly traded common stock is $1 or greater for 5 consecutive trading days, the company may provide 5 trading days’ notice to the holders of warrant B to call the warrant B for a total price of $0.01 for the entire warrant Bs. During such 5 trading days’ notice period, the holders of warrant B shall be permitted to exercise their warrant Bs at $0.33 per share. If the warrant Bs are not so exercised, they will be deemed to be repurchased by the company in full for $0.01.