Sollensys Corp. announced that it has entered into Securities Purchase Agreement with AJB Capital Investments LLC for the issue of 10% convertible promissory note for gross proceeds of $540,000 on October 13, 2022. The principal amount of the note is $600,000 and the note carries an original issue discount of $60,000.

The note matures on April 13, 2023. The company also issued the investor a warrant to purchase up to 1,000,000 shares of the common stock at an exercise price per share of $0.15 for a period ending on October 13, 2027. The Company agreed to pay to investor as a commitment fee $410,000 by issuing 5,125,000 shares of Common Stock reflecting a price per share of $0.08.

If the note has been repaid in full on or prior to the maturity date, the Company has the right to redeem 2,812,500 of the commitment fee shares for an aggregate of $1. The shares of Common Stock to be issued under the Securities Purchase Agreement, the Note and the Warrant have been, and will be, sold pursuant to an exemption from the registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D promulgated thereunder.