Jammin Java Corp. (OTCPK:JAMN) announced that it has entered into a securities purchase agreement for a private placement of a convertible promissory note at $254,000 per note for gross proceeds of $254,000 on September 9, 2015. The principal value of the note is for $254,000 and is issued at par.

The transaction included participation from new investor, Vis Vires Group, Inc. The note will mature on June 11, 2016. The note carries a fixed interest rate of 8% per annum. The principal amount of the note and all accrued interest is convertible at the option of the holder thereof into common stock at any time following the 180th day after note was issued.

The conversion price of the note is equal to the greater of 65% multiplied by the average of the lowest five closing bid prices of common stock during the ten trading days immediately prior to the date of any conversion; and $0.00009, provided that the conversion price is the lower of the conversion price on the announcement date and the conversion price on the date of conversion. In the event the company fails to deliver the shares of common stock issuable upon conversion of the note within three business days of our receipt of a conversion notice, the company is required to pay the investor, $2,000 per day for each day that it fails to deliver such shares. At no point of time during conversion, the investor can hold more than 9.99% stake in the company.

As part of the transaction, any amount of principal or interest on the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date thereof until the same is paid. The company issued the security pursuant to exemption provided under Regulation D.