CrowdGather, Inc. (OTCPK:CRWG) announced that it has entered into a securities purchase agreement for a private placement of 8% convertible promissory note with new investor Vinay Holdings, Ltd. for gross proceeds of $150,000 on May 4, 2015. The notes will carry a fixed interest rate of 8% per annum and would mature on November 4, 2015 and 18% per annum default interest. The notes were issued at its par value.

The company may prepay the investor note by making a payment equal to a percentage of the outstanding balance of the investor note at 110% during the first 30 days following the issuance of the investor note or 115% from 31 days to 60 days following the issuance of the investor note or 120% from 61 days to 90 days following the issuance of the investor note or 125% from 91 days to 120 days following the issuance of the investor note or 130% from 121 days to 150 days following the issuance of the investor note and 135% from 151 days to 180 days following the issuance of the investor note. The conversion price will equal the variable conversion price to equitable adjustments for stock splits, stock dividends or rights offerings by the borrower relating to the borrower's securities or the securities of any subsidiary of the borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar event. The variable conversion price shall mean 61% multiplied by the market price representing a discount rate of 39%.

Trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date.