Resonate Blends, Inc. announced that it has entered into a securities purchase agreement with AJB Capital Investments LLC for the issuance of convertible promissory note at a principal amount of $600,000 on September 8, 2022. The maturity date for repayment of the note is six months from issuance and the notes bear interest at 12% per annum. The maturity date on the note may be extended for another six months, but at an increased interest rate of 15% per annum.

All principal and accrued interest on the note is convertible into shares of company's common stock at the election of the Investor at any time at the conversion price equal to the volume weighted average trading price during the previous twenty trading day period ending on the date of issuance of the note, or during the previous twenty trading day period ending on the conversion date, whichever is lower. In connection with the transaction, the company issued commitment shares to the Investor of 5,571,429, with 3,000,000 shares returnable to its treasury along with warrants to purchase 1,000,000 shares of company's common stock at an exercise price of $0.25 per share, subject to adjustments.