Leo Motors Inc. (OTCPK:LEOM) announced that it has entered into a securities purchase agreement for private placement of 2 convertible debentures at a price of $179,527.50 per debenture, with a total of $395,000 principal amount for gross proceeds of $359,055 on May 18, 2016. The transaction will include participation from an accredited investor. The debentures will be issued at discount of 9.1%, resulting into two tranches of principal amount of $197,500 and proceeds of $179,527.50, each. The transaction is expected to close on or before the 30 days from the trading day when all of the transaction documents have been executed and delivered by the applicable parties and all conditions precedent to the investors’ obligations to pay the subscription amount and the company's obligations to deliver the debentures have been satisfied or waived. The debentures will bear interest at a rate of 10% per annum and will have a term of one year from issuance. The debentures will be convertible into common shares at any time after the sooner to occur of 180 days from the original issue date or when the shares issuable upon conversion of the debenture have been registered on a registration statement that has been declared effective by the Securities and Exchange Commission and until the debenture is no longer outstanding. The debentures are convertible at a conversion price equal to the lower of $0.50 per share or 70% of the lowest volume weighted average price for the previous 20 trading days prior to conversion. The company may prepay the debentures at any time upon 10 days written notice to the investor. The company will issue securities pursuant to exemption provided under Regulation D. The company has received $179,527.50 in the transaction. The debenture issued will mature on May 18, 2017.