MMEX Resources Corporation announced a private placement of 10% convertible note for gross proceeds of $190,000 on August 2, 2022. The transaction included participation from returning investor, GS Capital Partners LLC. The note carries a fixed interest of 10% per annum.

The investor may convert the unpaid principal balance of and accrued interest on the note into shares of common stock at a price of $0.055 per share. The company may prepay the note at 5% redemption premium during the first 60 days after issuance, increasing to 15%, thereafter until 120 days from issuance, and then to 25% until 180 days after issuance, after which the note may not be prepaid. The notes will mature on July 26, 2023.

The note is issued at discount of $10,000 on principle amount of $200,000. The company paid lender expenses of $5,000 and received net proceeds of $185,000 in the transaction. The issuance of securities and the shares of common stock issuable upon the conversion of any notes will be issued in reliance on the exemptions from registration provided by Section 4(a)(2) under the Securities Act and Regulation D.