VIASPACE Inc. (OTCPK:VSPC) announced that it has entered into loan agreement for a private placement of senior secured convertible promissory notes with Kevin Schewe, a director of the company, for gross proceeds of up to $300,000 on January 25, 2016. The note carries a fixed interest rate of 8% per annum. The note is secured by all assets of the company.

The note is convertible into common shares of the company at a price equal to 20% of the average closing price for the 20 trading days prior to the issuance of the loan. Each note would mature on the second anniversary of the issuance date of such note. The transaction is expected to be completed by January 2017.