Nano Labs Corp. (OTCBB:CTLE) announced a private placement of a convertible promissory note with new investor, KBM Worldwide Inc. for gross proceeds of $38,000 on January 14, 2015. The note carries a fixed coupon of 8% per annum and would mature on October 16, 2015.

The note will be convertible into common shares of the company at a variable conversion price of 58% multiplied by the market price. The company has the rights to prepay the note, including accrued interest, based on 120% during time from issuance through 30th day following issuance, 125% during time from 31 days following issuance through 60th day, 130% during time from 61 days following issuance through 90th day, 135% during time from 91 days following issuance through 120th day, 140% during time 121 days following issuance through 150th day, and 145% during time 151 days following issuance through 180th day, after which there shall be no right to prepayment.