ReTo Eco-Solutions, Inc. announced that it entered into a securities purchase agreement for the private placement of unsecured convertible promissory note for gross proceeds of $3,105,000 on March 10, 2022. The transaction will include participation from Streeterville Capital, LLC. The note will mature 12 months after the purchase price of the note is delivered from the investor to the company.

Investor gave consideration of $3,000,000, reflecting an original issue discount of $90,000 and $15,000 for Investor's fees, costs and other transaction expenses incurred in connection with the purchase and sale of the note. Interest accrues on the outstanding balance of the note at 5% per annum. Upon the occurrence of an event of default as defined in the note, interest accrues at the lesser of 22% per annum or the maximum rate permitted by applicable law.

In addition, upon any event of default, the Investor may accelerate the outstanding balance payable under the note, which will increase automatically upon such acceleration by 15% or 5%, depending on the nature of the event of default. Investor may convert all or any part the outstanding balance of the note at any time after six months from the purchase price date upon three trading days' notice, into the company's common shares, par value $0.001 at a price equal to the lower of (i) $2.00 per share, and (ii) 85% multiplied by the lowest daily volume weighted average price during the ten trading days immediately preceding the applicable measurement date, subject to a floor price of $1.00 per share.