Spotlight Innovation Inc. (OTCPK:STLT) announced that it has entered into a subscription agreement for a private placement of convertible note for gross proceeds of $400,000 on May 31, 2017. The note is convertible into shares at a price of $0.35 per share. The note bears an interest rate of 7.5% and matures in 24 months. In the event that the note has not been converted at the maturity date, the note will automatically convert into shares of the company at a price per share equal to $0.35. The company also issued a warrant to purchase 120,000 shares of the company at an exercise price equal to 110% of the closing bid price of the company’s shares on the six month anniversary of the date of the issuance of the warrant, subject to adjustment as provided in the warrant. The warrant expires on May 31, 2020. The securities offered and sold in the transaction are pursuant to an exemption from the registration requirements under section 4(a)(2) of the securities act and rule 506 of Regulation D.