ERF Wireless, Inc. (OTCBB:ERFB) announced that it has entered into a securities purchase agreement for the private placement of two twelve-month unsecured convertible promissory notes for gross proceeds of $100,000 on August 4, 2014. The securities will be issued to Union capital LLC for gross proceeds of $50,000 and Adar Bays LLC for gross proceeds of $50,000. The note carries an interest at a rate of 10% per annum and will mature on August 15, 2015.

The company will pay principal and interest due on the notes before or on the maturity date. The holder of the note may require the company to convert the outstanding principal balance into shares of common stock without a legend at any time after 180 days following the date of these notes. The common stock issued will be valued using a conversion factor of 55% multiplied by the lowest daily closing bid price for the 15 trading days prior to the conversion date.

The securities were issued pursuant to exemption provided under Regulation D.