Healthcare Integrated Technologies, Inc. announced that it has entered into a securities purchase agreement with returning investor AJB Capital Investments LLC for private placement of a convertible promissory note for gross proceeds of $534,000 on February 9, 2022. The note matures on August 9, 2023 , bears interest at a rate of 10% per annum, and, following an event of default only, is convertible into shares at a conversion price equal to the lesser of the lowest trading price during the previous 20 trading day period ending on the issuance date of the note, or during the previous 20 trading day period ending on the date of conversion of the note. The note is also subject to covenants, events of defaults, penalties, default interest and other terms and conditions customary in transactions of this nature.

The note is issued at a discount of $66,000 to principal amount of $600,000. The company has paid finder's fee of $9,000 in connection with the sale of the note. The company also issued warrants to the investor to purchase up to 1,500,000 shares at an exercise price of $0.10 per share.

The warrants expire 5 years from the date of issuance. The securities were issued pursuant to exemption provided under Section 4(a)(2) and rule 506(b) of Regulation D.