Stem Holdings, Inc. announced a private placement of an unsecured promissory note for a proceeds of $250,000 on November 10, 2022. The company has also issued 250,000 common share purchase warrants. The Note becomes due and payable in three months, subject to extension by the Company for an additional three months upon payment of a $5,000 extension fee to the lender.

The Note bears interest at rate of 10% per annum payable at maturity. The Company may prepay the outstanding principal amount of the Note together with all accrued and unpaid interest, without penalty, at any time prior to the maturity date of the Note. Each Warrant entitles the holder thereof to purchase one common share at a price of $0.05 for a period of 36 months after closing.

The Warrants and Warrant Shares are subject to a hold period of four months and one day from the date of closing in accordance with applicable Canadian securities laws. The transaction is expected to close on November 11, 2022.