THC Therapeutics, Inc. announced that it has entered into securities purchase agreement with GHS Investments, LLC for a private placement of 300 series C preferred shares of par value $1,200 per share at an issue price of $1,000 per share for gross proceeds of $300,000 on July 28, 2021. The company is obligated to pay cumulative dividends on the preferred shares at a fixed rate of 10% per annum, payable quarterly, and the company can elect to pay those dividends in cash or by issuing additional shares of preferred shares to the investor. Each preferred share is convertible into common shares of the company, at investor's election, at a conversion price equal to 80% of the lowest volume-weighted average price of the company's common stock during the 20 trading days immediately preceding the conversion date; provided, however, that such conversion would not cause the investor's stake in the company to be in excess of 4.99%. The company has the right to redeem the stock by paying a redemption amount per share equal to the $1,200 stated value of each share, plus any accrued but unpaid dividends, and any other amounts owing to the investor, multiplied by a redemption premium based on the date of redemption as follows: 100% if all of the preferred stock is redeemed within 90 days of the issuance date, 105% if all of the preferred stock is redeemed within 91-120 days of the issuance date, and 110% if all of the Preferred Stock is redeemed within 121-180 days of the issuance date. The company paid $5,000 for the investor's due diligence and legal fees and raised net proceeds of $295,000 in the transaction. The company will issue securities in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) promulgated thereunder.