Malachite Innovations, Inc. announced it has entered into a securities purchase agreement for a private placement of 20,000,000 at a price of $0.15 per share for gross proceeds of $3,000,000 on May 10, 2022. The transaction will include participation from Indemnity National Insurance Company for 13,333,333 shares and existing investor Tower IV LLC for 6,666,667 shares. The company also issued warrants to purchase up to an additional 13,333,333 shares to Indemnity National Insurance Company and warrants to purchase up to an additional 6,666,667 shares to Tower IV LLC at an exercise price of $0.60 per share.

Warrants are immediately exercisable and expire on the five-year anniversary of the date of issuance, which is May 10, 2027. After deducting for fees and expenses, the company will receive aggregate net proceeds of $2,900,000. The company will issue securities pursuant to exemption provided under Regulation D.