ERHC Energy Inc. (OTCPK:ERHE) announced a private placement of convertible debt for gross proceeds of $100,000 from Adar Bays LLC and LG Capital Funding, LLC on May 20, 2014. The notes carry an interest rate of 8% per annum and have a term of 12 months. The notes are convertible into shares at a conversion price of 61% of average price of shares for 25 trading days prior to conversion and 50% average price of shares for 2 trading days prior to conversion. The company has incurred transaction cost of $10,000 in the transaction.

On May 20, 2014, ERHC Energy Inc. closed the transaction.