Generex Biotechnology Corporation announced that it has entered into a securities purchase agreement with an investor for private placement of a convertible promissory note for gross proceeds of $1,000,000 on July 15, 2021. The note bears interest at 8% per annum with a 12-month maturity date. The note is issued at a discount of $70,000 on a principal amount of $1,070,000. Subject to certain ownership limitations, the note will be convertible at the option of the holder six months from the issue date into common shares at an effective conversion price of the lower of $0.60 and 75% of the lowest VWAP during the 30 consecutive trading days immediately preceding the delivery of the conversion. The company has the right to prepay the note at a premium ranging 5% to 20% if prepaid after issuance. If the note is prepaid within 60 days, the company will pay 105% of the principal amount, if the note is prepaid after 60 days but prior to 90 days, the company will pay 110% of the principal amount and If the note is prepaid after 90, the company will pay 120% of the principal amount. The company also issued 904,167 warrants to purchase common shares at $0.60 per share after 6 months through 5th anniversary from issuance. The company also issued 705,173 common shares as inducement shares. The securities were issued pursuant to exemption provided under Rule 506 of Regulation D. The conversion price of the note and the exercise of the warrants will be subject to adjustment in the case of stock splits, stock dividends, combinations of shares, similar recapitalization transactions and certain pro-rata distributions to common stockholders.