BEESFREE, Inc. (OTCPK:BEES) announced a private placement of 15% senior secured convertible note for gross proceeds of $2,000,000 on December 31, 2013. The notes bears interest at a rate of 15% per annum, compounded quarterly. The notes are convertible into common shares of the company at $1 per share and will mature 24 months from the date of the announcement. The company will also issue warrants to purchase 6,000,000 common shares of the company. The warrants are exercisable at $1 per share for a period of five years from the date of issuance. The company will issue securities pursuant to exemption provided under Regulation D. Steven D. Uslaner of Littman Krooks LLP will act as legal advisor to the company. The company will not pay finder's fee or commission in the transaction. The company will pay all registration expenses in connection with any registration.

On the same date, the company announced that it has received $150,000 in first tranche closing from two accredited investors. The company also issued warrants to purchase 450,000 shares of the company.