Galaxy Next Generation, Inc. announced that it has entered into a securities purchase agreement with AJB Capital Investments LLC for private placement of a convertible promissory notes for gross proceeds of $540,000 on June 21, 2022. The note will be issued at a discount of $60,000 on the principal amount of $600,000. The note bears interest at 12% per annum and is due and payable on December 31, 2022.

The maturity date may be extended at the sole discretion of the company for a period of up to six months. In the event that the maturity date is extended, the note will bear interest at 15% per annum for any period following the original maturity date. The company will issue warrants to purchase 600,000 shares and are exercisable at a purchase price of $0.50 per share and 1,800,000 shares of the company common stock issued to the investor as commitment fee shares in respect of a $450,000 commitment fee.

The continuance of an event of default Interest on the outstanding Principal balance of and accrued but unpaid interest on this note shall bear interest at a rate equal to the lesser of 18% per annum. The Company further issued 4,500,000 incentive fee shares as additional consideration for the purchase of the note. The company will issue securities pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 of Regulation D.