Innovate Biopharmaceuticals, Inc. (NasdaqCM:INNT) announced that it has entered into a securities purchase agreement with existing investor Atlas Sciences, LLC for the private placement of an unsecured convertible promissory note of original principal amount $2,750,000 issued at a discount of $250,000 for gross proceeds of $2,500,000 on January 10, 2020. The note carries a fixed coupon rate of 10% per annum. In the event of default, the note bears a coupon rate of 18%. The note is convertible into common shares of the company at a conversion price of $3.25 per share subject to adjustments. The company may prepay the note at any time for amount equal of 115% of then outstanding obligations. The company paid expenses of $20,000 with respect to the transaction. The company will issue securities pursuant to exemption provided under Regulation D.