Petro River Oil Corp. (OTCPK:PTRC) announced that it has entered into a securities purchase agreement for a private placement of 10% senior secured promissory note for $2,000,000 with new lender, Petro Exploration Funding LLC on June 13, 2017. The note issued in the transaction will mature on January 30, 2020. The company has granted a security interest in all assets of the company to Petro Exploration Funding LLC. The company also issued warrants to purchase 840,336 common shares and provided the lender with an overriding royalty interest equal to 2% in all production from the Company’s interest in the concessions located in Osage County, Oklahoma. Each warrant can be exercised immediately at an exercise price of $2.38 per share for a period of three years from the date of issuance. The first interest payment will be due on June 1, 2018 and each six month anniversary thereof until the outstanding principal balance of the secured note is paid in full. The company agrees to pay interest in respect of the unpaid principal amount of this note at a rate per annum equal to the lesser of the applicable rate or the maximum rate. Upon the occurrence and during the continuance of an event of default, which has not been cured, the company agrees to pay during the period of the continuance of such event of default interest on the unpaid principal amount of this note at a rate per annum equal to the lesser of the default rate which is 18% per annum and the maximum rate. The securities offered and sold in the transaction are pursuant to an exemption from the registration requirements under Section 4(a)(2) of the securities act and Rule 506 of Regulation D. The company shall pay the lender for its reasonable legal fees and expenses incurred in connection with the transaction.