ATRM Holdings, Inc. (OTCPK:ATRM) announced that it has entered into a securities purchase agreement for a private placement of an unsecured promissory note for gross proceeds of $500,000 on January 12, 2018. The transaction included participation from existing lender Lone Star Value Co-Invest I, LP, a fund managed by Lone Star Value Management LLC. The note was issued at par. The note bears an interest at a fixed rate of 10% per annum, payable semi-annually. The note will mature on January 12, 2020. The lender may elect to receive any interest payment in-kind at a rate of 12% per annum, so long as any such interest payment is made either entirely in payment in-kind interest or 50% cash and 50% payment in-kind interest. The note is unsecured and restricted. The company issued note at par. The company shall be entitled to prepay the note at any time after a specified amount of advance notice to the investor. The company shall be obligated to effect such prepayment within three days after the end of such notice period. The company has not retained any finder, broker, agent, financial advisor or other intermediary in connection with the agreement. All costs and expenses incurred in connection with this agreement shall be paid by the party incurring such costs and expenses. The company issued securities pursuant to exemption provided under Section 4(a)(2) of the Securities Act.