Galaxy Next Generation, Inc. announced that it has entered into a securities purchase agreement with returning investor AJB Capital Investments LLC for the issue of a 12% promissory note for gross proceeds of $765,000 and a warrant to purchase 1,000,000 common shares of the company on August 31, 2022. The note has a principal amount of $900,000 and is issued at a discount of 135,000. The note bears interest at 12% per annum, payable monthly and matures on August 31, 2023.

Any unpaid principal or interest on the note when due will bear default interest at the rate of the lesser of eighteen percent per annum and the maximum amount permitted under law. The securities are restricted and issued pursuant to Section 4(a)(2) of the Securities Act of 1933, and Rule 506 of Regulation D.