usell.com, Inc. (OTCPK:USEL) announced that it has entered into a note purchase agreement of 1% original issue discount secured term notes for gross proceeds of $8,000,000 from new investor Senior Health Insurance Company of Pennsylvania on October 23, 2015. The company issued secured term notes at a discount of 1% on the original price of $4,040,000. The company issued note together with its wholly owned subsidiaries, BST Distribution, Inc. and We Sell Cellular LLC.

The company will also receive an additional funding of $4,000,000 under the deferred draw notes in 2 additional tranches. The company expects to receive funding in two tranches within six months of the closing date. The secured notes carry fixed 13% interest rate payable monthly in arrears, beginning November 1, 2015.

The prepayment of the principal amount commences seven months from the date of closing the monthly installments of 1/48th aggregate principal amount. The notes are prepayable at fixed 103%, beginning one year from the closing date in increment of $500,000 at any time after October 23, 2016 upon 15 days prior notice. The initial notes will mature on October 23, 2018, while the deferred draw notes mature 3 years from the date if issue.

The company issued 740,000 shares of common stock in connection with the transaction. The company will issue 60,000 shares to the investor for each $1,000,000 additional investment. The company issued securities pursuant to exemption provided under Regulation D.