AnythingIT, Inc. (OTCPK:ANYI) announced that it has entered into a securities purchase agreement of a convertible promissory note at an original principal amount of $52,500 with new accredited investor Adar Bays, LLC on August 4, 2014. The note carries a coupon of 8% per annum and would mature on August 4, 2015. The note is convertible into shares of the common stock, at a conversion price for each share equal to 50% of the lowest trading price of the common stock as reported on the relevant exchange for the fifteen prior trading days.

Interest on any unpaid principal balance of note may be paid by the company with common stock. The company may prepay the note within 90 days of the issuance date by paying 130% of the outstanding principal plus any accrued but unpaid interest. The company may prepay the note after 90 days, but before 181 days, after the note issuance date, by paying 145% of the outstanding principal plus any accrued but unpaid interest.

The note cannot be prepaid after the 180th day. The note becomes immediately due and payable by the company upon the occurrence of an event of default, including but not limited to the failure to pay the amounts due at maturity under any promissory note issued to the investor or by the failure to deliver shares of common stock upon any conversion of note or a breach of the covenants, representations or warranties under the notes issued or the appointment of a trustee or liquidator subject to a cure period, a judgment against the company in excess of $50,000, or the filing of a bankruptcy petition, or failure to remain current in our reporting obligations under the Securities Exchange Act of 1934 or the removal of our common stock from quotation on the OTC Bulletin Board or similar over the counter quotation service. The company will issue securities pursuant to exemption provided under Section 4(a) (2) of the Securities Act and/or Regulation D. The company paid a legal fees of $2,500.