Sugarmade, Inc. announced that it has entered into private placement of a senior secured promissory note in the principal amount of $122,500 on February 21, 2023. The transaction included participation from Mast Hill Fund, L.P. managed by Mast Hill Management, LLC. The note bears interest at a rate of 8% per annum, and is payable at scheduled maturity on February 21, 2024 and is secured by substantially all of the assets of the company, excluding the company's intellectual property.

The notes will convert into shares of common stock, at a conversion price of $0.00003 per share. The company also issued warrants to purchase 418,333,334 shares of common stock. The transaction is expected to close by February 24, 2023.