NetBrands Corp. entered into a securities purchase agreement with new investor Cove Funding, LP for issuance of 12% senior secured convertible promissory note for gross proceeds of $300,000 on March 22, 2024. The convertible note has a stated maturity date of July 21, 2024, and an interest rate of 12% per annum.

The transaction will be completed in two tranches. The initial principal amount of the Convertible Note is $187,777 from which the Company received net proceeds of $150,000. Pursuant to the terms of purchase agreement, as additional consideration, the Company agreed to issue $285,000 in shares, in two tranches, plus certain additional shares, in accordance with the terms and conditions of the purchase agreement.

The commitment shares will be issued in two tranches, with the first being in an amount of $187,778 in shares, to be issued upon funding of the first tranche, and the second being in an amount of the balance of the principal amount in shares of the company?s common stock, to be issued upon funding of the second tranche.