Document:

Exhibit 10.1

 

 

 

 

 

 

First Amendment to Registration
Rights Agreement

 

by and between

 

CANNABIS GLOBAL, INC.

A NEVADA CORPORATION

 

and,

 

DUTCHESS CAPITAL GROWTH FUND,
LP

A DELAWARE LIMITED PARTNERSHIP

 

October 26, 2021

 

 

 

 

 

 

 

 

 

    

    

    

 

 

This First Amendment to Registration
Rights Agreement (Amendment) is entered into by and between CANNABIS GLOBAL, INC., a Nevada corporation (the “Company”),
and DUTCHESS CAPITAL GROWTH FUND LP, a Delaware limited partnership (the “Investor”). The Company and Investor may be referred
to herein as each a “Party” and collectively, the “Parties”.

 

RECITALS

 

WHEREAS,
on August 23, 2021, the Parties entered into that certain Registration Rights Agreement whereby in consideration of Investor’s
agreement to purchase an aggregate of Five Million Dollars ($5,000,000) of Drawdown Notice Shares, and to induce the Investor to enter
into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended,
and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities Act”), and applicable
state securities laws. A copy of the Registration Rights Agreement is attached hereto as Exhibit A and incorporated herein by reference.

 

WHEREAS,
pursuant to the Registration Rights Agreement, the Company agreed to register an aggregate of up to 15,000,000 Drawdown Notice Shares,
and (b) any shares of common stock issued to the Investor as a result of any stock split, stock dividend, recapitalization, exchange,
or similar event or otherwise with respect thereto.

 

WHEREAS,
pursuant to Section 2(a) of the Registration Rights Agreement, the Company filed Form S-1 with the Securities and Exchange Commission
on August 27, 2021 and is currently responding to comments from the Commission with the expectation that it will file an amendment to
Form S-1.

 

WHEREAS,
since the date the Parties entered into the Registration Rights Agreement, the Company’s price for its common stock as reported
on the OTC Markets has decreased from $0.041 per share to $0.011 per share on October 25, 2021.

 

WHEREAS,
in order to have a number of registerable shares sufficient to maximize the Investor’s agreement to purchase an aggregate of Five
Million Dollars ($5,000,000) of Drawdown Notice Shares, it is necessary to amend the Registration Rights Agreement to increase the total
number of registerable shares from fifteen million to thirty million shares.

 

WHEREAS,
pursuant to Section 10 of the Registration Rights Agreement, no provision may be (i) amended other than by a written instrument signed
by both parties hereto or (ii) waived other than in a written instrument signed by the party against whom enforcement of such waiver
is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

 

    	  

    	 

    

 

1. Incorporation
of Recitals. The Company and Investor incorporate the Recitals clauses into this Amendment as though fully set out. The Parties
waive any rule of contract interpretation or construction that would disallow a court from interpreting or enforcing this Amendment by
resort to the Recitals clauses.

 

2. Amendment
to Section 1(d); Definitions. Section 1(d) of the Registration Rights Agreement shall be amended to read:

 

“d. Registerable
Securities” means (a) an aggregate of up to thirty-five million (35,000,000) Drawdown Notice Shares, and (b) any shares of
common stock issued to the Investor as the result of any stock split, stock dividend, recapitalization, exchange for similar event or
otherwise with respect thereto.”

 

3. Remainder
in Full Force and Effect. With the exception of the Amendment, the remainder of the Registration Rights Agreement is in full
force and effect.

 

4. Filing
of Form 8-K. The Company covenants to file Form 8-K with the Commission within four days after the execution of this Amendment.

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed as of day and year first above written.

 

CANNABIS GLOBAL, INC. 

 

By:

 

/s/ Arman Tabatabaei    

Name: Arman Tabatabaei

Title: Chief Executive Officer

 

DUTCHESS CAPITAL GROWTH FUND
LP 

 

By:

 

/s/ Michael Novielli    

Name: Michael Novielli

Title: Managing Member, Dutchess
Capital Advisors LLC,

General Partner to: Dutchess Capital
Growth Fund, LPExhibit
4.5

 

Subscription
Agent: Vstock Transfer, LLC

18
Lafayette Place

Woodmere,
NY 11598

Information
Agent: Alliance Advisors, LLC

Banks,
brokers and shareholders call toll-free: (855) 723-7819

 

 

FG
FINANCIAL GROUP, INC. 

SUBSCRIPTION
RIGHTS CERTIFICATE FOR SHARES OF COMMON STOCK

 

 

 

THE
SUBSCRIPTION RIGHTS OFFERING (“RIGHTS OFFERING”) EXPIRES AT 5:00 P.M., EASTERN TIME, ON NOVEMBER 29, 2021, UNLESS
THE EXERCISE PERIOD IS EXTENDED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”). 

 

FG
Financial Group, Inc. (the “Company”) has distributed to each holder (each an “Eligible Holder”) of its common
stock, $0.001 par value per share (the “Common Stock’), owned as of record at 5:00 p.m., Eastern Time, on October 25, 2021
(the “Record Date”), at no charge, one (1) non-transferable subscription right (the “Subscription Right”) for
each share of common stock held as of the Record Date. Each Subscription Right entitles the Eligible Holder to subscribe for and purchase
0.15 of a share of Common Stock, at a subscription price of $4.00 per whole share (the “Subscription Price”). An Eligible
Holder who fully exercises their basic Subscription Rights is entitled to exercise an over-subscription privilege to subscribe for and
purchase, for the Subscription Price, additional shares that remain unsubscribed at the Expiration Date (the “Over-Subscription
Privilege”), subject to proration limitations. The terms and conditions of the Rights Offering are set forth in the Company’s
Prospectus, dated October 28, 2021 (as it may be amended or supplemented, the “Prospectus”), which is incorporated into this
Subscription Rights Certificate by reference. Capitalized terms used but not defined herein have the meanings set forth in the Prospectus.
The owner of this certificate is entitled to the number of basic Subscription Rights, and is entitled to exercise the basic Subscription
Rights for the number of shares shown on this Subscription Rights Certificate.

 

THE
SUBSCRIPTION RIGHTS ARE NON-TRANSFERABLE

 

The
Subscription Rights are non-transferable. There is no public trading market for the Subscription Rights, and the Subscription Rights
will not be listed on Nasdaq or any other securities exchange or market or quoted on any automated quotation system.

 

SUBSCRIPTION
PRICE 

 

The
Subscription Price for the basic Subscription Rights and the Over-Subscription Privilege is $4.00 per whole share.

 

METHOD
OF EXERCISE OF RIGHTS 

 

TO
EXERCISE YOUR SUBSCRIPTION RIGHTS, YOU MUST PROPERLY COMPLETE AND SIGN THIS SUBSCRIPTION RIGHTS CERTIFICATE ON THE BACK AND RETURN IT,
IN THE ENVELOPE PROVIDED, TO THE SUBSCRIPTION AGENT, VSTOCK TRANSFER, LLC (THE “SUBSCRIPTION AGENT”), TOGETHER WITH PAYMENT,
IN FULL, FOR AN AMOUNT EQUAL TO THE SUBSCRIPTION PRICE MULTIPLIED BY THE TOTAL NUMBER OF SHARES FOR WHICH YOU ARE SUBSCRIBING, TO THE
SUBSCRIPTION AGENT BEFORE 5:00 P.M., EASTERN TIME, ON THE EXPIRATION DATE. SUBSCRIPTION RIGHTS HOLDERS SHOULD CAREFULLY REVIEW THE PROSPECTUS
AND CONSULT THEIR LEGAL, TAX AND FINANCIAL ADVISORS BEFORE EXERCISING THEIR SUBSCRIPTION RIGHTS. 

 

    	 

     

    

 

	Holder
    ID	 	Company
    Identifier	 	Class	 	Subscription
    Rights Qty Issued	 	Subscription
    Rights Cert #
	XXXX	 	XXXX	 	Subscription
    Rights	 	XXX.XX	 	XXXX

 

	Signature
    of Owner and U.S. Person for Tax Certification	 	Signature
    of Co-Owner (if more than one registered holder listed)	 	Date
    (mm/dd/yy)

     

 

 

 

	 	 	 	 	 

 

You
must timely pay the full Subscription Price for the full number of Shares you wish to acquire pursuant to the basic Subscription Right
and the Over-Subscription Privilege. Shares subscribed for pursuant to the Over-Subscription Privilege are subject to proration and stock
ownership limitations, as described in the Prospectus. If you are the Eligible Holder, you must deliver payment to the Subscription Agent
via personal check to accounts maintained by the Subscription Agent; please reference your Subscription Rights Certificate control number
on your check. Payment also may be made by wire transfer to the account maintained by the Subscription Agent for purposes of accepting
subscriptions in the Rights Offering at CitiBank, N.A., ABA #021000089, Account #6872558279, with reference to the Eligible Holder’s
name. If your shares are held in the name of a broker, dealer, bank or other nominee, you should deliver payment to such broker, dealer,
bank or other nominee, as applicable, in accordance with the instructions provided by such nominee.

 

Payments
of the Subscription Price for the shares will be held in a segregated account until the Rights Offering is completed or the Company withdraws
or terminates the Rights Offering. No interest will be paid to you on the funds you deposit with the Subscription Agent. You will not
receive any interest on the payments held by the Subscription Agent before your shares have been issued to you or your payment is returned
to you, without interest, because your exercise has not been satisfied for any reason.

The
Company will not issue fractional shares. Instead, fractional shares resulting from the exercise of the basic subscription rights and
the over-subscription privileges will be eliminated by rounding down to the nearest whole share. Any excess subscription payment received
by the subscription agent will be returned, without interest or penalty, promptly following the expiration of the offering.

 

    	 

     

    

 

	PLEASE
    PRINT ALL INFORMATION CLEARLY AND LEGIBLY
	 

    SECTION
    1: OFFERING INSTRUCTIONS (check the appropriate boxes)

     

    IF
    YOU WISH TO SUBSCRIBE FOR YOUR FULL ENTITLEMENT OF SUBSCRIPTION RIGHTS:

	 	 	 	 	 	 	 
	☐	 	I
    apply for ALL of my entitlement of shares pursuant to the basic Subscription Right	 	_________

    (no.
    of basic subscription rights)
	 	 x
    0.15= 	 	__________

    (no.
    of shares)
	 	x
    $4.00 =

    (per
    share)
	 	$______
	 	 
	 	 	EXAMPLE:
    If you own 1,000 shares of common stock, your basic Subscription Right permits the purchase of 150 Shares [1,000 Subscription Rights
    x 0.15 = 150].
	 	 	 	 	 
	☐	 	addition,
    I apply for additional shares pursuant to the Over-Subscription Privilege*	 	___________________

    (no.
    of additional shares)
	 	x
    $4.00 =

    (per
    share)
	 	$______
	 
	IF
    YOU DO NOT WISH TO APPLY FOR YOUR FULL ENTITLEMENT OF BASIC SUBSCRIPTION RIGHTS:
	 	 	 	 	 
	☐	 	I
    apply for	 	___________

    (no.
    of shares)
	 	x
    $4.00 =

    (per
    share)
	 	$______
	 
	IF
    YOU DO NOT WISH TO EXERCISE YOUR RIGHT TO SUBSCRIBE:

    Please
    disregard this mailing.

	 
	SECTION
    2: SUBSCRIPTION AUTHORIZATION

     

    I
    acknowledge that I have received the Prospectus for this Rights Offering and I hereby subscribe for the number of shares indicated
    above on the terms and conditions specified in the Prospectus relating to the basic Subscription Rights and Over-Subscription Privilege
    in the Rights Offering:

     

    Signature
    of Subscriber(s)

    

     

    ____________________________________________________________________________

    

    (and
    address if different from Subscriber’s address on this Subscription Rights Certificate)

     

    ____________________________________________________________________________

     

    ____________________________________________________________________________

     

    Telephone
    number (including area code):___________________________________________

     

 

	*	You
    can only participate in the Over-Subscription Privilege if you have subscribed for your full entitlement of shares pursuant to the
    basic Subscription Right. 

 

Please
complete all applicable information and return to: VSTOCK TRANSFER, LLC

 

By
Registered Certified or Express Mail, or Courier Delivery: 

Vstock
Transfer, LLC, 18 Lafayette Place, Woodmere, NY 11598

 

DELIVERY
OF THIS SUBSCRIPTION RIGHTS CERTIFICATE TO THE SUBSCRIPTION AGENT AT AN ADDRESS OTHER THAN ITS ADDRESS SET FORTH ABOVE DOES NOT CONSTITUTE
A VALID DELIVERY. 

 

Any
questions regarding this Subscription Rights Certificate and Rights Offering may be directed to 

Alliance
Advisors, LLC, toll free at (855) 723-7819

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