On September 20, 2018, Creative Medical Technology Holdings, Inc. (the “Company”) completed the sale of Convertible Notes (“Notes”) and Common Stock Purchase Warrants (“Warrants”) to three institutional investors (the “Investors”) pursuant to a Securities Purchase Agreement between the Company and the Investors (the “Purchase Agreement”) dated as of September 13, 2018. The transaction was effected pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended and Rule 506(b) promulgated thereunder.

Pursuant to the Purchase Agreement, for a purchase price of $169,676.00, each Investor purchased a Note in the principal amount of $183,250.08 and a Warrant to purchase 1,247,618 shares of common stock. Each Note matures on September 20, 2019, bears interest at a rate of 8% per annum, and beginning 31 days after the closing date, is convertible into shares of the Company’s common stock at a conversion price equal to 65% of the Market Price of the common stock. “Market Price” as defined in the Note means the lowest trading price of the Company’s common stock during the 20 trading days preceding the applicable conversion date. In addition, the Notes are subject to covenants, events of defaults and other terms and conditions customary in transactions of this nature.

Each Warrant is exercisable for a five-year period at an initial exercise price of $0.088 per share, subject to full ratchet anti-dilution adjustment in the event of future issuances (or deemed issuances) of common stock, subject to certain exceptions.

The information set forth above is qualified in its entirety by reference to the actual terms of the Purchase Agreement, the Notes and the Warrants, which are attached hereto as Exhibits 10.1, 4.1 and 4.2, respectively, and which are incorporated herein by reference.