Vape Holdings, Inc. (OTCPK:VAPE) announced that it has entered into a securities purchase agreement for a private placement of a convertible promissory note for gross proceeds of $1,000,000 on October 28, 2016. The note carries an original issue discount of 10% per annum for $100,000 and an initial legal expenses incurred by the investor of $5,000. The principal amount of the note is $1,105,000. The transaction will include participation from GHS Investments, LLC. The note will carry an interest of 10% per annum. The maturity date for each funded tranche shall be nine months from the date on which the funds are received by the company. As part of the transaction, the company will receive $40,000 immediately on signing of the agreement. Within 15 days of certain conditions being met, an additional $40,000 shall be disbursed by the investor to the company, in its sole discretion as part of the second tranche. Within 30 days from the second tranche’s issuance, so long as there are no defaults under the note, the investor in its discretion may fund an additional $50,000 to the company every 30 days until $1,000,000 has been funded to the company. Each note, or any part of it, is convertible into fully paid and non-assessable $0.00001 par value common stock of the company. The conversion price is based on at least a 45% discount to the trading price of the company’s common stock.