CEN Biotech, Inc announced that it has entered into a purchase agreement with 1800 Diagonal Lending, LLC for gross proceeds of $70,000 on May 24, 2022. The company issued a convertible promissory note in the transaction. The maturity date of the note is May 24, 2023.

The note bears interest at a rate of 8% per annum, and a default interest of 22% per annum. The investor has the option to convert all of the outstanding amounts due under the note into shares of the company's no par value per share common stock beginning on the date which is 180 days following the issuance date of the note and ending on the later of the Maturity Date and the date of payment of the default amount, as such term is defined under the Note. The conversion price under the note for each share of common stock is equal to 65% of the lowest trading price of the Company's common stock for the 10 prior trading days including the day upon which a notice of conversion is received by the Company The company agreed to reimburse investor's legal fees and due diligence fees of $3,750.