Laredo Oil, Inc. announced that it has entered into a secured promissory note with the initial principal amount of $750,000 on June 28, 2022. The transaction will include participation from a lender Cali Fields LLC. The note will accrue interest on the outstanding principal sum at the rate of 15% per annum.

The company may prepay the note in whole or in part, without penalty, with any such payment being applied first to any accrued and unpaid interest, and then to the principal amount. The note has a maturity date of December 31, 2023. As partial consideration for the lender's advance of the principal amount of the note, the company agreed to pay the lender a quarterly revenue royalty equal to 0.5% of the consolidated revenue of the company and its consolidated subsidiaries from the production of oil, gas, gas liquids and all other hydrocarbons, recognized by the company during the most recent calendar quarter during the Royalty Period.

The Royalty Period is from June 1, 2022, through May 31, 2027. The note is secured by the company's 50% interest in Cat Creek Holdings, LLC.