Telkonet, Inc. announced that it has entered into a purchase agreement with VDA Group SPA for 162,900,947 common shares at a par value of $0.001 per share and 105,380,666 purchase warrants for gross proceeds of $5 million on August 6, 2021. The warrant entitled to purchase the additional shares of common stock, at an exercise price of $0.001 per share, at any time beginning on the date the Company achieves a volume weighted average price of the aggregate outstanding common stock of at least $17,000,000, measured for a period of time consisting of sixty consecutive trading days and ending five years after the date of issuance of the warrant. The warrant may not be exercised for the first 12 months from the closing of the transaction. post transaction the investor will hold 53% of issued and outstanding common stock of the company, on fully diluted basis and eventually own as much as 65% of the issued and outstanding common stock on a fully diluted as exercised/converted basis if it fully exercises the warrant, which is majority stake. The transaction is subjected to customary closing conditions, including, without limitation approval of shareholders if the company. The transaction is expected to close in the fourth quarter of 2021. No finder’s fees paid in the transaction.