QUANTUMSPHERE, INC. QuantumSphere, Inc. (OTCPK:QSIM) announced that it has entered into a note purchase agreement for the private placement of 10% subordinated convertible promissory notes for gross proceeds of $625,000 on December 4, 2015. The notes have rate of 10% per annum and will mature upon the earlier of one year from the date of issuance or the closing of an equity financing $4,000,000. The default interest rate shall be eighteen 18% per annum.
The notes are convertible into common stock at $1.60 per share. The investors will also be issued detachable common stock purchase warrants exercisable at $3 per share for five years. The notes are secured by the company's senior secured lender.
The company will issue securities pursuant to exemption provided under Regulation D. The round included participation from 14 investors.
