CardioGenics Holdings Inc (OTCBB:CGNH) announced a private placement of upto 15 convertible debentures units at $100,000 per unit for gross proceeds of $1,500,000 on May 31, 2013. Each unit will consist of one series B convertible debenture for principal amount of $100,000 per debenture and one warrant. The debentures will carry an interest of 10% per annum, will have a maturity date that is three years following the date of the issue of convertible debentures, and is convertible into common stock of the company at $0.25 per share. Each warrant entitles the holder to purchase 150,000 shares of the company's common stock at an exercise price of $0.15 per share for three years from closing. There is no minimum number of units to be sold in the transaction. The company will issue securities pursuant to exemption provided under Regulation D.

On May 31, 2013, the company received $500,000 in its first tranche.

On June 3, 2013, CardioGenics Holdings Inc closed the transaction. The company issued convertible debentures units to three directors and/or officers of the company for gross proceeds of $155,000. The company has raised $655,000 from four accredited investors in the transaction.