Healthcare Integrated Technologies, Inc. (OTCPK:HITC) announced that it has entered into a securities purchase agreement with AJB Capital Investments LLC for private placement of a convertible promissory note for gross proceeds of $320,400 on February 2, 2021. The note matures on August 2, 2021, bears interest at a rate of 10% per annum, and, following an event of default only, is convertible into shares at a conversion price equal to the lesser of 90% of the lowest trading price during the 20 trading day period preceding the issuance date or the 20 trading day period preceding date of conversion of the note. The note is also subject to covenants, events of defaults, penalties, default interest and other terms and conditions customary in transactions of this nature. The note is issued at a discount of $39,600 to principal amount of $360,000. The note is secured on company's assets. The company has paid finder's fee of $31,256 and issued 1,333,334 common shares of $200,000 as commitment fees. During the 6-month period following the 6-month anniversary of the closing date, the investor shall be entitled to be issued additional shares to the extent the investor's sale of commitment shares results in net proceeds to investor of an amount less than the commitment fees. If the company repays the note on or before the maturity date, the company may redeem 666,667 of the commitment shares at a redemption price of $1 per share. The company will reimburse investor $9,000 as legal fees and $3,500 as due diligence fees. The securities were issued pursuant to exemption provided under Section 4(a)(2) and rule 506(b) of Regulation D.