Defense Technology Systems Inc. (OTCPK:DFTS) announced that it has entered into a purchase agreement for a private placement of convertible debentures for gross proceeds of $250,000 on August 31, 2018. The transaction will include participation from a private investor. The debentures of face value of $275,000 will be issued at a discount of 15%. The debentures on a six-month period are convertible into common shares of the company at a fixed conversion price of $0.60 per share. The company will also issue 100,000 common stock purchase warrants which may be exercised for up to three years at an initial exercise price of $0.70 per share. The transaction is subject to fulfillment of certain closing conditions. The company will issue securities pursuant to exemption provided under Section 4(a)(2) of the Securities Act and Regulation D.