Generex Biotechnology Corporation (OTCPK:GNBT) announced that it has entered into a securities purchase agreement with an investor for private placement of a convertible promissory note for gross proceeds of $1,425,000 on February 17, 2021. The note bears interest at 8% per annum with a 12-month maturity date. The note is issued at a discount of $264,500 on a principal amount of $1,689,500. Subject to certain ownership limitations, the note will be convertible at the option of the holder six months from the issue date into common shares at a fixed conversion price of $0.60 per share. The company has the right to prepay the note at a premium ranging 5% to 20% if prepaid after issuance. The company also issued 1,407,917 warrants exercisable at $0.60 per share after 6 months through 5th anniversary from issuance. The securities were issued pursuant to exemption provided under Rule 506 of Regulation D.