STOCKHOLDERS EQUITY

12 Months Ended

Dec. 31, 2023

STOCKHOLDERS EQUITY

STOCKHOLDERS' EQUITY

NOTE 13 - STOCKHOLDERS’ EQUITY

 Common Stock

On or about April 7, 2022, the Company sold 20,800 shares of Hempacco common stock at $20.00/share to nine investors, eight of which were third parties. The Company received gross proceeds of $416,000, and net proceeds of $339,475 after payment of commissions and expenses to the Company’s registered broker and the payment of expenses associated with the private offering and the Public Offering.

On or about July 15, 2022, The Company acquired from Nery’s Logistics, Inc., an entity that is a significant shareholder (greater than 10%) of the Company's parent, two cigarette production equipment lines together with multiple cigarette and cigar-related trademarks. The total acquisition price was deemed to be $4,000,000 to be paid solely by the issuance of 200,000 common shares of the Company. $3,400,000 was initially allocated to the value of the equipment, and the balance of $600,000 was allocated to the intangible assets. See note 13 for additional information concerning the value of these assets.

On July 15, 2022, The Company also settled two vendor accounts payable balances totaling $100,000 by the issuance of 5,000 common shares of the Company.

On September 6, 2022, Boustead Securities LLC submitted a notice of the exercise of the warrant purchase option, pursuant to paragraph 1.3.1 of the Underwriting Agreement. Boustead elected to convert its right to purchase 7,000 common shares at $9.00 per share using the cashless basis formula into 5,493 shares of common stock. The market price of these shares on the issue date was $4.74 per share resulting in additional underwriting expenses of $260,358, which was an increase and decrease to additional paid in capital. 

On September 17, 2022, the Company entered a Marketing Services Agreement with North Equities Corp. of Toronto, Canada, effective September 19, 2022, for an initial period of 6-months. Compensation for the initial period will be by the issuance of 4,149 rule 144 restricted shares of the Company’s common stock. This amount represents a market value of approximately $100,000 as of the effective date. The shares were issued to North Equities Corp. of Toronto on October 4, 2022. The Company will also reimburse North Equities for all direct, pre-approved and reasonable expenses incurred in performing the marketing services.

On October 12, 2022, the Company entered a Broadcasting and Billboard Agreement with FMW Media Works LLC (“FMW”) of Hauppauge, New York, for a period of three months. FMW will produce an informative TV show which will discuss the Company and its business. Total compensation will be made by the issuance of 6,329 rule 144 restricted common shares of Hempacco. The market value of the issued shares was $148,103 and was expensed in full in 2022.

On February 1, 2023, the Company entered a second Broadcasting and Billboard Agreement with FMW Media Works LLC (“FMW”) of Hauppauge, New York, for a period of twelve months. FMW will produce an informative TV show which will discuss the Company and its business. Total compensation will be made by the payment of $7,500 per month in cash, and the issuance of 25,000 rule 144 restricted common shares of Hempacco. The market value of the issued shares was $307,250 and was expensed in full in 2023.

On or around February 5, 2023, the Company issued 1,500 shares to Dr. Fischer and Partner GmbH/ Ruediger Beuttenmueller for IR consulting services in Europe pursuant to a consulting contract effective December 1, 2022, and terminating on February 20, 2023. See Note 1.

On February 14, 2023, the Company sold 483,000 shares of Hempacco common stock at $15.00 per share to its underwriters in the Company’s second public offering, and to Boustead Securities, LLC (“Boustead”) and EF Hutton pursuant to the underwriting agreement, in connection with the offering (the “Underwriting Agreement”). After deducting the underwriting commission and expenses, the Company received net proceeds of $6,610,400.

On or about April 4, 2023, the Company entered into an agreement with Tactic LLC to make a web-based augmented reality experience active from QR codes printed on “Snoop Daze” packaging. Total cost of this project was $100,000, with 40% of this paid in Hempacco common shares. Accordingly on November 16, 2023, 10,814 shares, with a value of $40,000, were issued to Tactic LLC.

On May 16, 2023, 6,222 shares of the Company’s common stock were issued to Ernest Sparks for conversion of his promissory note and accrued interest (see Note 8 above).

On August 9, 2023, 33,240 shares of the Company’s common stock were issued to Miguel Cambero for conversion of his promissory note and accrued interest (see Note 8 above).

On or around September 26, 2023, the Company issued 25,000 shares to FMW MediaWorks for media services pursuant to an additional consulting contract dated February 2, 2023. The shares were issue at the then market price of $3.70 for a total expense of $92,500.