Notis Global, Inc. (OTCPK:NGBL) announced that it has entered into a securities purchase agreement for private placement of notes with new investor, Magic Farms, LLC for gross proceeds of up to $2,009,759.4 on September 30, 2016. The notes will bear interest at a fixed rate of 5% per annum and are issued at a 40% discount to purchase price. The par value of notes is $3,349,599. The notes may be prepaid inclusive of interest of the greater of one year or the current amount of time that the note has been outstanding. The notes will be issued by two wholly owned subsidiaries of the company, EWSD I, LLC and Pueblo Agriculture Supply and Equipment, LLC. The transaction will take place in seven tranches, consisting of first tranche of $539,306 to be closed on September 30, 2016, second tranche of up to $100,000 to be closed on or around October 1, 2016, third tranche of up to $208,424 to be closed on or around October 17, 2016, fourth tranche of up to $100,000 to be closed on or around November 1, 2016, fifth tranche of up to $188,818 to be closed on or around November 15, 2016, sixth tranche of up to $182,051 to be closed on or around December 15, 2016, and seventh tranche of up to $665,000 which is contingent upon the purchase of that certain parcel of land located at 212 39th Ln, Pueblo CO 81006, upon terms and conditions that are satisfactory to the investor and the assignment of a 20% ownership interest in that certain 320-acres of agricultural land in Pueblo, Colorado and land located at 212 39th Ln, Pueblo CO 81006 to the investor. The transaction size may be reduced by up to $700,000 for monies raised by the company or the subsidiaries at the option of the investor. The company shall pay the investor an annual collateral management fee of $239,050, which shall be due and payable in equal monthly installments of $19,921, commencing October 3, 2016 and continuing each successive month until the notes have been satisfied in full. The collateral management fee shall increase to $478,100 per year in the event of default, until such event of default has been cured. The collateral management fee is guaranteed for the first 12 months following the issuance of the notes. The investor has the right to convert all or any portion of principal and/or interest of the notes into common shares of the company in an event of default. On the same date, the company announced that it has received funding in its first tranche closing. The company received $450,000 and $89,306 remains outstanding.