FORZ Forza Innovations Inc (CE)

Item 1.01 Entry into a Material Definitive Agreement.

On September 23, 2022, Forza Innovations Inc. (the “Company”), closed a Securities Purchase Agreement (the “Purchase Agreement”) with Mast Hill Fund, L.P., a Delaware limited partnership (“Mast Hill”), dated as of September 19, 2022, pursuant to which the Company issued Mast Hill a convertible promissory note in the principal amount of $290,000 (the “Note”), a five-year warrant to purchase up to 100,000,000 shares of common stock at a price of $0.003 per share (the “First Warrant”) and a warrant to purchase up to 100,000,000 shares of common stock at a price of $0.003 per share (the “Second Warrant”), which warrants are only exercisable upon an “Event of Default” as defined in the Note.

Pursuant to the Purchase Agreement, Mast Hill purchased the Note, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of Mast Hill. The Company intends to use a majority of the net proceeds ($250,780) to help fund the growth of its wholly-owned subsidiary Sustainable Origins Inc. The Note contains an original issue discount amount of $29,000 and legal fees payable to Mast Hill’s legal counsel of $5,000.

The maturity date of the Note is September 19, 2023 (the “Maturity Date”). The Note shall bear interest at a rate of 12% per annum, which interest may be paid by the Company to Mast Hill in shares of common stock, but shall not be payable until the Note becomes payable, whether at the Maturity Date or upon acceleration or by prepayment, as described in the Note. Mast Hill has the option to convert all or any amount of the principal face amount of the Note.

The conversion price for the Note shall be equal to the Conversion Price (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Company relating to the Company’s securities or the securities of any subsidiary of the Company, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Conversion Price” shall equal $0.0015. Notwithstanding the foregoing, Mast Hill shall be restricted from effecting a conversion if such conversion, along with other shares of the Company’s common stock beneficially owned by Mast Hill and its affiliates, exceeds 4.99% of the outstanding shares of the Company’s common stock.

The foregoing descriptions of the Purchase Agreement, the Note, the First Warrant and the Second warrant do not purport to be complete and are qualified in their entirety by reference to the full text of such documents, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3 and 10.4 and are incorporated herein by reference.