Viropro Inc. (OTCPK:VPRO) announced that it has entered into a definitive agreement for a private placement of convertible debt for gross proceeds of $200,000 in funding with existing investor SpringHill Bioventures Sdn Bhd on August 25, 2014. The notes carry an interest rate of 12% per year. At or prior to maturity the note may be converted by the note holder, or prepaid with notice to allow the note holder to convert.

If not converted or prepaid within 12 months of issue, the notes will automatically convert into shares of common stock of the company at a conversion rate of $.01 per share. If the full value of the notes is purchased, the company will issue warrants to purchase up to 7,000,000 shares of common stock at a price of $.06 per share. Under the terms of the agreement with the investor additional notes may be sold up to the $500,000 maximum prior to December 31, 2014, subject to a minimum purchase of $10,000.

The company intended to raise $500,000 in the transaction.