Malachite Innovations, Inc. announced that it has entered into a purchase agreement for the issuance of 2,733,334 common shares at a price of $0.15 per share for gross proceeds of $410,000.1 in the transaction co-led by new investors Morla Ventures, LLC and Stonewall Capital on April 11, 2023. The company also issued warrants to purchase up to an additional 2,733,334 shares of the Company's common stock at a price of $0.60 per share. The transaction also included participation from individual investors Edward Feighan, the company's Chairman of the Board, Bernie Kosar, Rebecca Wharton, the company's Human Resources Manager.

The securities to be issued in the transaction are restricted securities and have not been registered under the Securities Act and may not be offered, resold, pledged or otherwise transferred except (i) pursuant to an exemption from registration under the Securities Act or pursuant to an effective registration statement in compliance with Section 5 under the Securities Act and (ii) in accordance with all applicable securities laws of the states of the United States and other jurisdictions. The company issued the securities pursuant to exemption provided under Regulation D. The company paid issuance cost of $10,000.1 and received net proceeds of $400,000. No brokerage or finder's fees or commissions are or will be payable by the company or any subsidiary to any broker, financial advisor or consultant, finder, placement agent, or investment banker with respect to the transaction.