CardioGenics Holdings Inc (OTCBB:CGNH) announced a private placement of 40 convertible debentures units at $25,000 per unit for gross proceeds of $1,000,000 on February 27, 2013. Each unit will consist of one series A convertible debenture and one warrant. The minimum investment will be one unit. The debentures will carry an interest of 10% per annum, and will have a maturity date that is three years following the date of the issue of convertible debentures and is convertible by the holder at any time into common stock of the company at a conversion price of $0.25 per share. Each warrant entitles the warrant holder to purchase 50,000 shares of the company's common stock at an exercise price of $0.25 per share. The warrants also have a term of three years from the date of issue. The securities issued will be pursuant to Regulation D.

On the same date, the company issued one convertible debenture and one warrant to each of the three accredited investors for $100,000 each. The company raised $300,000 as part of the first tranche. The warrants issued will entitle the holder to acquire 200,000 shares of the company's common stock.