Can B Corp. announced that it has entered into a securities purchase agreement for a private placement of a secured convertible promissory note for gross proceeds of $1,550,000 on February 2, 2023. The note will be issued at a discount of 15%, of the principal amount of $1,823,529.

The Note is non-interest bearing. The company may elect to pay all or a portion of a monthly installment due under the note by converting such amount into shares of the company's common stock at a price of $4.00 per share, subject to adjustment in accordance with the terms of the note. The note is payable in nine monthly installments of $232,500 each, consisting of a $227,941 principal reduction payment and a $4,559 redemption fee, commencing on April 27, 2023.

The company will also issue warrant to investor to purchase 1,307,190 shares of the company's common stock at an exercise price equal equal to 90% of the lowest volume weighted average price of the common stock during the five trading days preceding the date of exercise. The Warrant contains a cashless exercise provision and is exercisable at any time during the period beginning on August 27, 2023 and ending on August 27, 2028. The company will issue the security in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D as promulgated under the Securities Act.