Spotlight Innovation Inc. (OTCPK:STLT) announced that it has entered into a convertible note for gross proceeds of $170,000 on December 30, 2016. The transaction included participation from returning accredited investor K4 Enterprises, LLC. The note carries fixed interest rate of 6% and would mature on December 31, 2019. The company issued note at par value. The note is convertible at the option of the investor into common shares of the company at a conversion price equal to 70% of the average closing bid price of the common shares of the company during the six months immediately prior to such conversion. The company also issued 425,000 warrants exercisable at $1.2 per share until December 31, 2018. The company may prepay all or a portion of the outstanding principal amount and unpaid interest of the note upon ten written notice to the investor. The note is convertible into 388,726 shares of common stock of the company at a price of $.43733 per share.