On October 18, 2021, Heritage Cannabis Holdings Corp. closed the transaction. The company entered into a Note and Warrant Purchase Agreement with Merida Capital Partners III LP, a fund co-managed by Merida Capital Partners, LLC and Merida Advisor, Llc and Merida Capital Partners IV LP, a fund managed by Merida Capital Partners, LLC. The company issued a convertible promissory note to Merida Capital Partners III LP for a principal amount of $660,000, which has an interest rate of 15%, and will mature on October 18, 2023 as well as issued warrants to each of Merida Capital Partners III LP and Merida Capital Partners IV LP equal to 50% of the aggregate number of Conversion Shares that would be received upon conversion of 100% of the aggregate amount of principal outstanding under the Note. The company also issued 696,942 shares to each of Merida Capital Partners III LP and Merida Capital Partners IV LP as a commitment fee for this transaction, representing $31,250 divided by 90% of the volume weighted average price per Common Share as reported on the Canadian Securities Exchange for the 30 consecutive trading days preceding such issuance. The shares issued in connection with the Commitment Fee were issued at a price of CAD$0.0556 per share. The securities are subject to a standard four-month hold under applicable securities laws.