Hammer Technology Holdings announced that it has entered into securities purchase agreement to issue promissory note for an aggregate gross proceeds of $550,000 on February 11, 2022. The notes will be convertible into shares of the company's common shares at conversion price of $0.58 per share. The notes carry an original discount of $55,000, raising net proceeds of $495,000.

The notes carry rate of interest of 12% per annum and will mature on February 11, 2023. Any amount of principal or interest not paid when due will bear interest at a rate of the lesser of 16% per annum and the maximum amount permitted by law. The note may not prepaid in whole or in part.

The company will also issue common stock purchase warrant to purchase 150,000 shares of the company at an exercise price of $3 per share, common stock purchase warrant to purchase 150,000 shares of the company at an exercise price of $1.50, and 475,000 shares as as additional consideration for the purchase of note.