ARC Group, Inc. (OTCPK:ARCK) announced that it has entered into a material definitive agreement for a private placement of a secured convertible note with Seenu G. Kasturi for gross proceeds of $622,929.17 on August 30, 2018. The transaction involved participation from Seenu G. Kasturi, President, Chief Financial Officer, and Chairman of the board of directors of the company. The note will carry a coupon of 6% per annum. The principal and accrued but unpaid interest is due and payable by the company in full on the earlier of either the 5th anniversary of the date of the note, or the date that the investor demands repayment in full by providing written notice thereof to the company. The note is convertible at the option of the investor into the class A common shares of the company at a conversion price of $1.36 per share. The note is secured by the assets of the company. Upon the occurrence of an event of default or at any time during the continuance of any event of default, the investor may declare all or any portion of the outstanding principal and accrued and unpaid interest thereon to be immediately due and payable. In the event of default, the interest rate of the note will increase to 12% per annum.