NovAccess Global Inc. announced that it has entered into a securities purchase agreement with new investor 13 Paul Lending LLC to issue a 8% convertible promissory note for the gross proceeds of $55,000 on August 16, 2023. The note bears interest at 8% a year and is due on August 16, 2024. The company may prepay the 13 Paul note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the 13 Paul note when prepaid.

Under the terms of the 13 Paul note, and may not sell a significant portion of its assets without the approval of 13 Paul, must comply with the company?s reporting requirements under the Securities Exchange Act of 1934. Beginning on February 12, 2024, the investor may convert the amount outstanding under the 13 Paul note into shares of company's common stock at a conversion price equal to 65% of the average of the three lowest closing prices of the stock during the fifteen trading days before the conversion date.