Monster Arts Inc. (OTCBB:APPZ) announced a private placement of convertible promissory note for gross proceeds of $32,500 with existing investor Asher Enterprises, Inc. on September 12, 2013. The note carries interest rate of 8% per annum, will mature on June 16, 2014 and is convertible into common shares of the company at a conversion price equal to 55% of the prevailing market price, beginning 180 days from the date of the note's issuance. The company issued securities pursuant to exemption provided under Regulation D. The company's obligation with respect to this transaction is to reimburse investor's expenses will be $2,500. The company did not hire any broker for the transaction. Naidich Wurman Birnbaum & Maday LLP acted as legal advisor to the investor.

On September 12, 2013, Monster Arts Inc. closed the transaction.