iQSTEL Inc entered into securities purchase agreement to issue 18% secured convertible promissory notes principal amount of $3,888,888.89 for an aggregate purchase price of $3,500,000 on January 24, 2024. The notes are offered at discount of 10%. The transaction included participation from new investor, M2B Funding Corp. Each one-year note bears interest at 18% per annum and matures on January 24, 2025. Notes are convertible into shares of our common stock with an initial conversion price of $0.11 per share. Each noteholder shall receive shares of common stock in an amount equal to ten percent of the principal amount of any Note issued divided by $0.11. The Notes are secured by all of our assets under a Security Agreement. The second tranche will be for principal amount of $1,666,666.67 in face value of Notes, with an original issue discount of US $166,666.67.

On same date, the company issued secured convertible promissory notes principal amount of $2,222,222.22 for an aggregate purchase price of $2,000,000 at a discount of 10% in its first tranche.