Location Based Technologies, Inc. (OTCBB:LBAS) announced a private placement of secured convertible promissory note with a high net worth investor, Greggory S. Haugen, Lead Director of the company for gross proceeds of $1,000,000 on August 13, 2013. The company will also issue three years warrants to purchase 2,000,000 shares. The warrants will be exercisable at a price of $0.20 per share. The transaction will take place in tranches with first tranche of $400,000 to close on August 15, 2013 and second tranche of $600,000 to close on or before September 30, 2013. The note will be convertible at a price of $0.20 per share and bear interest at a rate of 10% per annum. The note will have a term of two years and mature on September 30, 2015. The note is senior secured against all of the company's unencumbered assets, and has a second and/or third security position against all of the company's encumbered assets. The company and the investor will pay for their own costs and expenses incurred with respect to the negotiation, execution, delivery and performance of this agreement.

On August 15, 2013, the company announced that it has received $400,000 in first tranche closing.

On September 19, 2013, Location Based Technologies, Inc. closed the transaction. The warrants will expire on August 29, 2016.