Document:

Exhibit 10.21

 

FIRST AMENDING AGREEMENT

 

THIS AGREEMENT made as of
the 11th day of March, 2020

 

BETWEEN:

 

JERRY ZARCONE

 

(hereinafter referred to as “Jerry”)

 

- and –

 

TARGET GROUP INC. 

 

(hereinafter referred to as “TGI”)

 

- and –

 

CANARY RX INC. 

 

(hereinafter referred to as “Canary”)

 

- and –

 

VISAVA INC. 

 

(hereinafter referred to as “Visava”)

 

- and –

 

CANNAKORP INC.

 

(hereinafter referred to as “Cannakorp”)

 

(Canary, Visava
and Cannakorp collectively referred to as the “Subsidiaries”)

 

WHEREAS:

 

		A.	The Jerry and TGI entered into a Loan Agreement made as of the 20th day of December,
2019 (the “Loan Agreement”).

 

		B.	All capitalized terms shall have the meanings ascribed to them in the Loan Agreement unless otherwise
defined herein.

 

		C.	The Parties are desirous of amending the Loan Agreement upon the terms and provisions of this Agreement.

 

    - 1 -

     

    

 

NOW THEREFORE THIS AGREEMENT WITNESSETH
that in consideration of the respective covenants and agreements hereinafter contained and the sum of One Dollar ($1.00) now paid
by the parties hereto each to the other (the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto),
the parties hereto agree as follows:

 

		1.	The Parties hereby declare and confirm that the Recitals are true and accurate and form integral
terms and provisions of this Agreement.

 

		2.	Notwithstanding the terms and provisions of the Loan Agreement, and in particular:

 

		(a)	Section 2 thereof, not all of the Security has been procured to the satisfactory of Jerry, and
in particular, the owner of the Premises (the “Landlord”) has refused to consent to the granting of a registered
first charge over and to Canary’s right, title, and interest in and to the Lease and the Premises upon terms and provisions
satisfactory to Jerry (“Charge of Lease Security”), and notwithstanding that Jerry is presently in discussions
with the Landlord in respect thereof, the parties acknowledge and agree that TGI and the Subsidiaries are and remain in default
of the Loan Agreement for failure to procure the Charge of Lease Security, as aforesaid, which default shall persist unless and
until the procurement of the Charge of Lease Security upon terms and provision satisfactory to Jerry in his sole and absolute discretion.

 

		(b)	Section 4 thereof:

 

		(i)	The board of directors for TGI consist of the following persons, all of whom are satisfactory to
Jerry:

 

		(1)	

		(2)	

		(3)	

		(4)	

		(5)	

 

		(ii)	The sole Chief Executive Officer of TGI is Anthony Zarcone, who is also satisfactory to Jerry.

 

		3.	The Loan be and same is hereby increased by the principal amount of Three Hundred Thousand ($300,000.00)
Dollars (CDN) (the “Additional Loan”) upon the following terms and provisions:

 

		(a)	The Additional Loan shall be repayable upon demand;

 

		(b)	The Additional Loan shall be subject to a Lender’s Fee in the amount of Thirty Thousand ($30,000.00)
Dollars (CDN), which shall be deducted and paid for from the first advance thereunder;

 

    - 2 -

     

    

 

		(c)	The Additional Loan shall be subject to an interest rate equal to 3.0416% per month (being 43.26%
per annum), calculated monthly, not in advance;

 

		(d)	Prior to demand, the Borrower and Subsidiaries shall make monthly payments of interest only, as
calculated pursuant to Section 3(d) hereof on the ____ day of each and every month; and

 

		(e)	All monies owing under the Additional Loan be and same shall be guaranteed by the Subsidiaries
and secured under the Security.

 

		4.	TGI and the Subsidiaries shall execute, deliver, and register within a reasonable time following
presentation thereof by Jerry or his counsel (but in no event more than five (5) business days following such presentation) in
order to give full effect to the terms and provisions of the Additional Loan, as aforesaid, and shall also promptly do or cause
to be done all other acts and things, execute and deliver or cause to be executed and delivered all agreements and documents and
provide any further assurances, undertakings and information in order to give full effect to this Agreement.

 

		5.	Except as modified by this Agreement, the Loan Agreement shall be unamended and shall be and shall
remain in full force and effect. Also, to the extent that any term or provision of this Agreement conflicts with any term or provision
of the Loan Agreement, the terms and provision of this Agreement shall prevail.

 

		6.	This Agreement may be executed by the Parties in separate counterparts each of which when so executed
and delivered to each other shall be deemed to be and shall be read as a single agreement among the parties.

 

		7.	Execution of this Agreement by either of the Parties may be evidenced by delivery of a faxed or
electronically mailed transmission of such party’s signature and such faxed or electronically mailed signature shall be deemed
to constitute the original signature of such party.

 

		8.	This Agreement is governed by and is to be construed and interpreted in accordance with, the laws
of the Province of Ontario and the laws of Canada applicable in that Province.

 

		9.	This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter
of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of
the Parties, and there are no representations, warranties or other agreements between the Parties in connection with the subject
matter of this Agreement except as specifically set out in this Agreement.

 

    - 3 -

     

    

 

Each of the Parties has
executed and delivered this Agreement as of the date first above written.

 

	SIGNED IN THE PRESENCE OF	)	 	 
	 	)	 	 
	 	)	 	 
	 	 	)	 	 	 
	Witness	)	 	JERRY ZARCONE

 

	 	TARGET GROUP INC.
	 	Per:
	 	 
	 	 
	 	Name: Rubin Schindermann
	 	Position: Director
	 	 
	 	 
	 	Name: Saul Niddam
	 	Position: Director
	 	 
	 	 
	 	Name: Frank Monte
	 	Position: Director
	 	 
	 	 
	 	Name: Anthony Zarcone
	 	Position: Director
	 	 
	 	 
	 	Name: Barry Katzman
	 	Position: Director
	 	 
	 	We have authority to bind the Corporation
	 	 
	 	CANARY RX INC.
	 	Per:
	 	 
	 	 
	 	Name: Randall S. MacLeod
	 	Position: President & CEO

 

    - 4 -

     

    

 

	 	VISAVA INC.
	 	Per:
	 	 
	 	 
	 	Name: Randall S. MacLeod
	 	Position: President & CEO
	 	 
	 	CANNAKORP INC.
	 	Per:
	 	 
	 	 
	 	Name: Saul Niddam
	 	Position: CEO

 

    - 5 -Exhibit 10.1

 

AMENDMENT TO SERIES D WARRANTS TO PURCHASE
COMMON STOCK

 

This Amendment to Series
D Warrants to Purchase Common Stock (“Series D Warrants” and such amendment, the “Amendment”)
by and between Arch Therapeutics, Inc., a Nevada corporation (the “Company”), Warrant Holder 1 (“Warrant
Holder 1”) and Warrant Holder 2 (“Warrant Holder 2” and together with Warrant Holder 1, the “Warrant
Holders”) is made as of June 3, 2020 (the “Effective Date”).

 

RECITALS

 

WHEREAS, in
connection with the Company’s private placement that concluded on July 2, 2015 (the “2015 Private Placement Financing”),
the Company issued to the investors in the 2015 Private Placement Financing Series D Warrants to acquire up to an aggregate of
14,390,754 shares of Company Common Stock;

 

WHEREAS, Section
1(b) of the Series D Warrants provides that the current exercise price (“Exercise Price”) of the Series
D Warrants is $0.25 per share;

 

WHEREAS, Section
1(f) of certain of the Series D Warrants provides that such Series D Warrants may not be exercisable in the event and to the
extent that the exercise thereof would result in the holder of such Series D Warrants, together with any person whose beneficial
ownership would be aggregated with the holder, beneficially owning more than 4.9% of the Company’s Common Stock (the “Ownership
Limitation”);

 

WHEREAS, Section
9 of the Series D Warrants provides that the Company may amend the Series D Warrants only with the written consent of the holders
of at least a majority of the Series D Warrants outstanding as of such date (the “Required Holder(s)”);

 

WHEREAS, as
of the date hereof, (i) there are Series D Warrants exercisable for up to 8,974,389 shares of Common Stock; (ii) Warrant Holder
1 beneficially owns Series D Warrants exercisable for up to _____________ shares of Common Stock (the “Warrant Holder
1 Warrants”); and (iii) Warrant Holder 2 beneficially owns Series D Warrants exercisable for up to _____________ shares
of Common Stock (the “Warrant Holder 2 Warrants” and together with the Warrant Holder 1 Warrants, the “Warrants”),
and therefore the Warrant Holders constitute the Required Holder;

 

WHEREAS, the
Company and the Warrant Holders, in their capacity as the Required Holder, now wish to amend the Series D Warrants to (i) lower
the Exercise Price; and (ii) eliminate the Ownership Limitation on the terms and conditions set forth herein (collectively, the
 “Warrant Amendments”); and

 

WHEREAS, in
connection with and promptly following the effectiveness of the Warrant Amendments, the Company and each of the Warrant Holders
have futher agreed that the Company shall issue (i) Warrant Holder 1 a Series J Warrant exercisable for up to _____________ shares
of Common Stock; and (ii) Warrant Holder 2 a Series J Warrant exercisable for up to _____________ shares of Common Stock, in each
case in substantially the form attached hereto as Exhibit A (the “Series J Warrant”), as consideration
for each Warrant Holder’s respective agreement to exercise all the Warrants that they each beneficially own.

 

     

     

    

 

NOW, THEREFORE,
in consideration of the foregoing and for good and valuable consideration, the receipt and sufficiency which are hereby acknowledged,
the Parties hereby agree as follows:

 

		1.	Definitions.

 

		a.	The terms defined in the Preamble and Recitals are incorporated herein.

 

		b.	Capitalized terms not otherwise defined in this Amendment shall have the meaning given to them in the Series D Warrants.

 

		2.	Amendments to Series D Warrants.

 

		a.	Section 1(b). Section 1(b) to the Series D Warrants is hereby deleted in its entirety and replaced with the following
as of the Effective Date:

 

“(b) Exercise Price. For purposes
of this Warrant, “Exercise Price” means $0.18, subject to adjustment as provided herein.”

 

		b.	Section 1(f). Section 1(f) to the Series D Warrants is hereby deleted in its entirety and replaced with the following
as of the Effective Date:

 

“(f) [Reserved].”

 

		3.	Series J Warrant.

 

		a.	Upon Warrant Holder 1’s exercise of all the Warrant Holder 1 Warrants and payment to the Company of the aggregate exercise
price of $____________, the Company shall issue Warrant Holder 1 a Series J Warrant exercisable for up to _____________ shares
of Common Stock.

 

		b.	Upon Warrant Holder 2’s exercise of all the Warrant Holder 2 Warrants and payment to the Company of the aggregate exercise
price of $___________, the Company shall issue Warrant Holder 2 a Series J Warrant exercisable for up to _____________ shares of
Common Stock.

 

		4.	Representations and Warranties. Each Warrant Holder, severally and not jointly, hereby represents and warrants to the Company
as follows:

 

		a.	The Warrant Holder meets the requirements of at least one of the suitability standards for an “accredited investor”
as that term is defined in Regulation D as promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

 

		b.	The Warrant Holder is acquiring the Series J Warrant and, as applicable, the shares issuable upon its exercise (the “Warrant
Shares”), solely for the Warrant Holder’s account for investment purposes only and not with a view to or intent
of resale or distribution thereof, in whole or in part, in violation of the Securities Act, and the Warrant Holder has no present
intention of selling, granting any participation in, or otherwise distributing the same in violation of the Securities Act, without
prejudice, however, to the Warrant Holder’s right at all times to sell or otherwise dispose of all or any
part of the Series J Warrant and/or Warrant Shares in compliance with applicable federal and state securities laws and in compliance
with any transfer restriction to which the Series J Warrant and the Warrant Shares may be subject at any time or from time to time.

 

    -2-

     

    

 

		c.	The Warrant Holder has such knowledge and experience in financial, tax, and business matters, and, in particular, investments
in securities, so as to enable it to utilize the information made available to it in connection with the Series J Warrant to evaluate
the merits and risks of an investment in the Company and the Warrant Shares and to make an informed investment decision with respect
thereto:

 

		d.	The Warrant Holder (i) understands that neither the Series J Warrant nor the Warrant Shares issuable upon its exercise have
been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other
things, the truth and accuracy of the Warrant Holder’s representations and warranties set forth herein; and (ii) agrees not
to sell, transfer or otherwise dispose of either the Series J Warrant or such Warrant Shares except pursuant to the terms and conditions
set forth in Section 4(a) of the Series J Warrant.

 

		e.	The Warrant Holder further understands that there can be no assurance any market will ever exist for the resale of the Series
J Warrant or any of the Warrant Shares issuable upon the exercise of the Series J Warrant, nor can there be any assurance that
either the Series J Warrant or any of such Warrant Shares will be freely transferable at any time in the foreseeable future.

 

		5.	GOVERNING LAW. This Amendment shall be governed by, and construed in accordance with, the internal laws of the State
of New York, without reference to the choice of law provisions thereof.

 

		6.	Miscellaneous. To the extent that there are any inconsistencies between the terms of any Series D Warrants and the terms
of this Amendment, the terms of this Amendment shall prevail in effect. This Amendment may be executed by the Parties in counterparts
and may be executed and delivered by facsimile or other means of electronic communication and all such counterparts, taken together,
shall constitute one and the same agreement. A signed copy of this Amendment delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Amendment. Except as
otherwise expressly provided herein, Series D Warrants shall continue to be in full force and effect.

 

[signature page
follows]

 

    -3-

     

    

 

IN WITNESS WHEREOF,
the Warrant Holders and the Company have caused their respective signature page to this Amendment to be duly executed as of the
date first written above.

 

	 	ARCH THERAPEUTICS, INC.	 
	 	 	 
	 	By:	              	 
	 	Name: Terrence W. Norchi, M.D
	 	Title: President, Chief Executive Officer
	 	 	 
	 	REQUIRED HOLDER:	 
	 	 	 
	 	 	 
	 	Name: Warrant Holder 1	 
	 	 	 
	 	 	 
	 	Name: Warrant Holder 2	 

 

     

     

    

 

Exhibit
A

Form
of Series J Warrant

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