Sector 5, Inc. (OTCPK:SFIV) announced a private placement of convertible promissory notes for gross proceeds of $1,392,500 from returning investor Auctus Fund, LLC, a fund managed by Auctus Fund Management, LLC on July 31, 2018. The note carries a fixed coupon rate of 10% per annum and would mature in 12 months from the date of closing. The note is convertible into common shares of the company at the lesser of the lowest trade in the twenty-five days prior to conversion or 40% discount to the average of the two lowest trades during the previous twenty-five days of conversion. The note is issued at an original issue discount for gross proceeds of $1,500,000.