On March 18, 2020, Generex received a letter from

On March 18, 2020, Generex received a letter from counsel for Efrat Investments LLC, the holder of two of the Company’s Convertible Promissory Notes (“Notes”), in the aggregate principal amount of $446,600, claiming damages for failure to receive, upon conversion of the Notes, additional shares of Generex common stock attributable to Generex’s February, 2020 stock dividend. The letter cites several bases for liability, and also claims that Generex has violated securities laws by failing to disclose Generex’s conduct relating to Efrat in certain SEC filings. The letter demands payment of $627,497 in damages and/or delivery of 250,813 shares of Generex Common Stock. Generex intends to vigorously defend this claim. Generex does not agree with Efrat’s interpretation of the terms of the Notes leading to this claim. Generex strongly denies any claim of securities law violations by not disclosing these circumstances, for various reasons including that Generex did not and does not believe it engaged in any conduct requiring disclosure.