Kingold Jewelry, Inc. (NasdaqCM:KGJI) announced that it has entered into a securities purchase agreement for a private placement of 5% convertible promissory notes due April 1, 2021 for gross proceeds of $500,000 on April 1, 2020. The transaction will include participation from two private accredited investors for a purchase price of $250,000 each at principle amount of $257,500 each. 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 $515,000. The company will also issue 2 years warrant to purchase 200,000 shares at an exercise price of $1.25 per share. The warrants are exercisable from issuance and expire two years from the date of issuance. The company will receive net proceeds of $445,000 from the transaction. The company may redeem this note by paying to the Holder an amount 0-90 days 120% amount, 90-150 days 130% amount, 150-180 days 135% amount, and After 181 days before the maturity date, this note may be redeemed at 140%. The company has issued securities pursuant to exemption provided under Securities Act contained in Section 4(a)(2) thereof and/or Regulation D.