ERBA Diagnostics, Inc. (OTCPK:ERBA) announced a private placement of a convertible promissory note for gross proceeds of $8,000,000 on July 31, 2018. The transaction included participation from existing investor, ERBA Diagnostics Mannheim GmbH. The note carries a coupon of 3.5% per annum, and will mature on July 30, 2021, subject to acceleration upon the occurrence of certain specified events of default. The note is convertible into a maximum of 48,752,675 common shares of par value $0.01 per share at an average closing price of a share, such average calculated based upon the 15 calendar days prior to the date on which the investor delivered to the company written notice of its election to exercise its right to convert the convertible promissory note. In the event of pre-payment before the maturity date, the company will additionally pay one-time fee of $80,000 to the investor. The transaction has been approved by the board of directors of the company.