Vape Holdings, Inc. (OTCPK:VAPE) announced that it has entered into a securities purchase agreement for private placement of a convertible promissory note for gross proceeds of $325,000 new accredited investor GHS Investments, LLC on April 19, 2016. The note has a principal value of $357,500. The note will bear a fixed interest rate of 10% per annum, and would mature on January 19, 2017.

The note has been issued at an original issuance discount of $32,500. The note is convertible into common shares of the company at a conversion price of 45% discount off of the lowest intra-day trading price for the company's common stock during the 20 trading days immediately preceding a conversion date. The company will receive funding in eight tranches.

The company will receive first tranche of $42,700 on or before April 30, 2016, second tranche of $20,750 on or before May 19, 2016, third tranche of $42,700 on or before May 30, 2016, fourth tranche of $20,750 on or before June 19, 2016, fifth tranche of $42,700 on or before June 30, 2016, sixth tranche of $42,700 on or before July 30, 2016, seventh tranche of $42,700 on or before August 30, 2016, and final tranche of $70,000 at the time of closing. The company will issue securities pursuant to exemption provided under Regulation D.