On July 6, 2020, the Company signed an amendment to its binding letter of intent to acquire Cannaworx, Inc. (USA), extending the completion deadline to July 31,2020 with two 30-day automatic extensions. The planned acquisition remains subject to certain closing conditions, including completion of all due diligence and acquisition financing.

From July 1, 2020 through August 12, 2020 the Company issued loans convertible into common stock at $2.50/share for $1.7 million. The loans carry 10% interest rates and one-year terms. To secure these loans, the Company issued 22,500 shares of common stock and warrants exercisable into 595,700 common shares (five-year life and a $3.50 exercise price). During this period, the Company also paid off five convertible loans totaling $702,800. The loans were issued July 19, 2018, April 9, 2019, July 29, 2019, August 6, 2019 and October 8, 2019. To retire these loans Company paid $472,371 in cash and issued 248,898 shares of common stock and 103,469 warrants to acquire common stock (three-year life and $3.50 exercise price) in full payment of principal, interest and fees. In this period the Company also issued 24,000 shares of common stock in partial settlement of $54,397 of principal and fees on a loan issued February 22, 2019.

From July 1, 2020 to August 12, 2020 the Company entered into Standstill and Forbearance Agreements with lenders who hold convertible notes with a principal balance of approximately $1.97 million. Lenders have agreed with the Company not to convert any portion of their notes at a variable rate until August 31, 2020.

On July 7, 2020, the Company and its Merchant lenders agreed to a final resolution of their arrangements. In this agreement, Company paid $385,388, issued 112,885 shares of common stock and 112,885 warrants to the Merchant lenders. The warrants have a three-year life and a $3.50 exercise price.