Net Talk.com, Inc. (OTCPK:NTLK) announced a private placement of convertible promissory note to new investor JMJ Financial, Inc. for gross proceeds of $450,000 on August 21, 2014. The note is convertible at a conversion price equal to the lesser of $0.17 or 60% of the lowest trade price in the 25 trading days previous to the conversion date. The note will mature on August 21, 2016. If the investor repays a payment of consideration on or before 90 days from the Effective Date of that payment, the interest rate on that payment of consideration shall be 0%. If the investor does not repay a payment of consideration on or before 90 days from its effective date, a one-time interest charge of 12% shall be applied to the principal sum. The company will issue securities pursuant to exemption provided under Regulation D. The minimum investment accepted from any outside investor is $50,000. Source Capital Group will act as placement agent to the company and will receive sales commission of $2,500.

As of September 17, 2014, the company has received $50,000 in funding from one investor in the first tranche.

On September 24, 2014, NetTalk.com, Inc. (OTCPK:NTLK) closed the transaction. The company has received $83,500 in funding from one investor in the second tranche. The minimum investment accepted from any outside investor is $83,500. The company will pay sales commission of $4,000.