NovAccess Global Inc. announced that it has entered into a securities purchase agreement with returning investor 1800 Diagonal Lending, LLC for a private placement of a convertible promissory note in the original principal amount of $55,000 on June 20, 2023. The note bears interest at 8% a year and is due on June 20, 2024. The company may prepay the note upon payment of a prepayment penalty ranging from 15-25% of the amount outstanding on the note when prepaid.

Upon an event of default, the note will bear interest at 22% and 1800 Diagonal will be entitled to its costs of collection. Beginning on December 17, 2023, the investor may convert the amount outstanding under the note into shares of the company's common stock at a conversion price equal to 65% of the average of the three lowest trading prices of the stock during the fifteen trading days before the conversion date. The issuances of the note to 1800 Diagonal was exempt from registration under Section 4(a)(2) of the Securities Act of 1933.