Innovaro, Inc. (OTCPK:INNI) announced a private placement of an 8% convertible promissory note with new investor, Asher Enterprises, Inc. for gross proceeds of $78,500 on July 30, 2013. The company will issue securities pursuant to exemption provided under Regulation D. The note will bear interest at a rate of 8% per annum with default rate of interest of 22% per annum. The interest will be calculated on 365-day year and the actual number of days elapsed.

The note will be convertible at a price of 58% of the average of the lowest three trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date. The investor has the right to convert the notes into common shares at any time after 180 days from the issuance until the later of maturity date and the date of payment of the default amount. The note will mature on May 2, 2014.

The company will reimburse the investor for the expenses incurred related to the transaction for an amount of up to $3,500. Bernard S. Feldman of Naidich Wurman Birnbaum & Maday LLP will act as legal advisor to the investor. The transaction is expected to close by August 2, 2013.