Vape Holdings, Inc. (OTCPK:VAPE) announced that it has entered into a securities purchase agreement for a 16 private placement of convertible promissory notes for gross proceeds of up to $1,285,000 on November 1, 2016. The unsecured redeemable notes will bear a fixed interest rate of 10% per annum. The principal of the notes included an original issue discount of $128,000 and a transaction fee of $5,000. The transaction included participation from existing accredited Typenex Co-Investment, LLC. The company issued first and second note for $40,000 each, 3rd note to 6th note for gross proceeds of $50,000 each, and 7th note to 16th note for $100,000 each in the transaction. The company will receive net proceeds of $1,280,000 in the transaction. The conversion price of each note shall be equal to 55% of the multiplied by the lowest intra-day trade price in the twenty trading days immediately preceding the applicable conversion, provided that if at any time the lowest intra-day trade price in the twenty trading days immediately preceding any date of measurement is below $0.0025. On the same day, Vape Holdings, Inc. (OTCPK:VAPE) closed the transaction. The company has issued note 1 for gross proceeds of $40,000.