Kingold Jewelry, Inc. (NasdaqCM:KGJI) announced that it has entered into a securities purchase agreement for a private placement of two 5% convertible redeemable note due August 26, 2020 for gross proceeds of $1,000,000 on August 26, 2019. The transaction will include participation from two private accredited investors for one note of $500,000 each. The notes carry a fixed interest of 5% per annum, and will mature on August 26, 2020. The notes are convertible into common shares at a conversion price of $3 per share for the first 180 days following issuance. After that, the notes may be converted for a price equal to 70% of the lowest closing price of the company’s common share, $0.001 par value per share during the ten trading days immediately prior to the delivery of an exercise notice. The notes are exchangeable. The notes are issued at an original issue discount of 3%, for principal amount of $1,030,000. The company will also issue warrants exercisable into 400,000 shares at an exercise price of $0.75 per share. The warrants are exercisable from issuance and expire two years from the date of issuance. The company will receive net proceeds of $840,000 from the transaction.