Medigard Limited (ASX:MGZ) announced a private placement of convertible notes with existing investor Sol-Millennium Medical Products Co., Ltd. for gross proceeds AUD 256,797 on November 25, 2016. The notes bear fixed interest at 8% per annum and will be capitalized until conversion or the maturity date. The notes will mature on January 6, 2019. The notes will be redeemable on January 6, 2018 The notes will be convertible into common shares of the company at a conversion price equal to lower of AUD 0.05 per share or 30 trading day volume weighted average price prior to conversion notice, with a minimum conversion price of AUD 0.025 per share. The company may issue maximum of 11,120,000 common shares to the investor upon conversion of the notes. The transaction has been approved at its annual general meeting.