Ironclad Encryption Corporation (OTCPK:IRNC) announced a private placement of a 10% convertible note for the gross proceeds of $250,000 on June 26, 2018. The company also issued a warrant to purchase 62,500 common shares at an exercise price of $3 per share. The note carries coupon rate of 10% per annum until maturity and 24% per annum after maturity date and was issued at par. The note will mature on December 26, 2018. The note is convertible into common shares of the company at a conversion price of $1 per share or an alternate variable conversion price, triggered by events such as stock splits, stock dividends, or rights offerings, which is 70% of a market price defined to be the lowest five day closing bid price for the company’s shares during the twenty day trading period ending on the last trading day prior to exercising the conversion right. The company paid issuance expenses of $15,000. The company issued securities pursuant to exemption provided under Regulation D.