Northern Power Systems Corp. (TSX:NPS) announced a private placement of 6% convertible subordinated promissory notes for minimum gross proceeds of $2,000,000 and maximum of gross proceeds of $2,750,000 on July 19, 2018. The transaction will include participation from individual investor John Simon, Director of the company, CWE II, LLC, a firm controlled by Richard Hokin for proceeds of $1,500,000, and new investors for proceeds of $500,000. The notes are convertible into common shares of the company at a conversion price of $0.051 per share. The company will issue 60,392,157 shares upon conversion of notes. The notes carry an interest rate of 6%. The term of notes is 24 months. The notes will automatically mature and be due and payable on the 2nd year anniversary of the issuance date. The aggregate interest due and payable for the full two-year term of the notes is $330,000. The transaction is expected to close in multiple tranches, the first of which will occur on July 27, 2018. The transaction is expected to approval from the shareholders of the company.