Sugarmade, Inc. announced that it has entered into agreement for a private placement of 8% promissory note for gross proceeds of $478,800 on November 14, 2022. The transaction included participation from Mast Hill Fund, L.P., a fund managed by Mast Hill Management, LLC. The notes carry a interest rate of 8% per annum and will mature on November 14, 2023.

The principal amount of notes are $532,000 and issued at an original issue discount of $53,200. The Holder may convert the Note into the Company's common stock, at any time at a conversion price equal to $0.0001 per share, subject to adjustment. The Company issued a common stock purchase warrant for the purchase of up to 1,773,333,333 shares of the Company's common stock, exercisable for five years from November 14, 2022, at an exercise price of $0.0003 per share.