Starco Brands, Inc. announced that it has entered into a financing transaction for the issuance of secured promissory note for gross proceeds of $2,000,000 on December 29, 2022. The transaction included participation from Ross Sklar, the Chief Executive Officer of the company. The promissory notes will bear a floating interest rate comprised of the Wall Street Journal Prime Rate plus 4%, for a current floating interest rate of 11.5%.

The promissory note matures on August 1, 2023 and has a default interest rate equal to the then current interest rate plus 5%. the company, at its option, may prepay the promissory note, in whole or in part, without prepayment penalty of any kind. The company also issued warrants to purchase 285,714 shares of common stock at an exercise price of $0.01 per share, exercisable until December 29, 2027.