MARIMED INC. 10-Q

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During the three months ended June 30, 2023, the Company issued unregistered securities as described below: • 5,025 shares of restricted common stock subscribed during the six months ended June 30, 2023, with a fair value of approximately $2,000; • 450,000 shares of restricted common stock to purchase a 0.33% minority interest in Mari Holdings MD LLC, one of the Company's majority-owned subsidiaries; • 21,383,040 shares of common stock issued to convert 4,276,608 shares of Series C convertible preferred stock to common stock; • an aggregate of 1,140,741 shares of restricted common stock with a total fair value of approximately $460,000 issued as payment for services to two service providers; and • 1,290 shares of restricted common stock with an aggregate fair value of approximately $1,000 issued under a royalty agreement. The issuance of the shares of common stock described above were deemed to be exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") in reliance upon Sections 4(a)(2) and/or 4(a)(5) of the Securities Act. A legend restricting the sale, transfer, or other disposition of these securities other than in compliance with the Securities Act was placed on the securities issued in the foregoing transactions. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures Not applicable.