Bantec, Inc. announced that it has entered into securities purchase agreement to issue unsecured convertible promissory note to returning investor 1800 Diagonal Lending LLC in the principal amount of $40,000 for gross proceeds of $40,000 on December 11, 2023. The note is convertible into common shares of the company. The note matures on December 11, 2024.

The company carries interest at the rate of 10% per annum, and interest will commence accruing on the date that the note is fully paid. However, if any amount of principal or interest on the note is not paid when due, the note will bear interest at the rate of 22% per annum. The note and shares of common stock issuable upon the conversion of the note, as described above, were issued by the company to the lender in a private offering in reliance on the exemption from the registration requirements under Section 4(a)(2) of the Securities Act of 1933, as amended, and the provisions of Regulation D thereunder.