ERHC Energy Inc. (OTCPK:ERHE) announced a private placement of convertible debt for gross proceeds of $100,000 from Redwood Fund III, Ltd. on May 15, 2014. The notes carry an interest rate of 7.85% per annum and have a term of six months. The notes are convertible into shares at a price of 50% of average price of shares for 20 trading days prior to conversion. The company incurred transaction cost of $10,000 in the transaction.

On May 15, 2014, ERHC Energy Inc. closed the transaction.