SofTech, Inc. (OTCPK:SOFT) announced that it has entered into a securities purchase agreement and a note purchase agreement for a private placement of 110,000 common shares at $5 per share for gross proceeds of $550,000 and a promissory term note for gross proceeds of $750,000 for aggregate gross proceeds of $1,300,000 on June 20, 2014. The company will issue common shares to existing investor, Joseph P. Daly and will issue note to new lender EssigPR, Inc. Joseph P. Daly have a right to require the company to repurchase some or all of the shares at $7 per share during the 90 days period beginning April 1, 2017. After the completion of the transaction, Joseph P. Daly will hold 17.4% stake in the company. The note will mature on April 1, 2017 and will beat an interest at the rate of 9.5% per annum payable quarterly in arrears. The company may prepay all or part of the principal of the note at any time. The issuance of the shares has been approved by the board of directors. Edwards Wildman Palmer LLP will act as legal advisor to the company. The company will not pay any brokerage fee and commission in the transaction. The securities will be issued pursuant to exemption provided under Regulation D.

On June 20, 2014, SofTech, Inc. closed the transaction.