The Crypto Company announced that it has entered into a Securities Purchase Agreement with returning investor AJB Capital Investments LLC to issue a Convertible Promissory Note at a price of $135,000 in the principal amount of $159,000 for the gross proceeds of $135,000 on February 29, 2024. The company has paid fees and expenses of $5,000 and the net proceeds will be $130,000. The maturity date of the note is August 29, 2024.

The note bears no interest on the principal except for default interest, if any. Upon an event of default the note will bear interest at the lesser of 18% per annum or the maximum amount permitted under law, the holder may immediately accelerate the note due date and may convert the amount outstanding under the note into shares of company common stock at a discount to the market price of the stock. The offer and sale of the note was made in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended in reliance on exemptions afforded by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated thereunder.