Spotlight Innovation Inc. (OTCPK:STLT) announced that it has entered into a convertible note for gross proceeds of $830,000 on December 16, 2016. The transaction included participation from returning investor K4 Enterprises, LLC. The note carries fixed interest rate of 6%. 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 2,075,000 K4 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 in not less than $100,000 denomination at any time prior to or on maturity date. The note carries maturity date of December 31, 2019. Cristopher Grunewald represented the company in the transaction.