WindStream Technologies, Inc. (OTCPK:WSTI) announced that entered into a securities purchase agreement for private placement of the original issue discount senior secured convertible debentures for gross proceeds of $676,735 on October 16, 2014. The transaction will include participation from new investors Redwood Management LLC. Total principal amount of the debentures is $712,500 and will be issued at an original issue discount of 5%. The debentures bear interest at 10% per annum, of which the first year is guaranteed to the lenders. The debentures will mature in one year. Debentures are convertible into common shares of the company at a price of $0.4634 per share. The company will issue securities pursuant to exemption provided under Regulation D. At any time upon ten days written notice to the holder, the company may prepay any portion of the principal amount of this debenture and any accrued and unpaid interest. If the company exercises its right to prepay the debenture, the company shall make payment to the holder of an amount in cash equal to the sum of the then outstanding principal amount of the debenture and accrued interest multiplied by 130%. The holder may continue to convert the debenture from the date notice of the prepayment is given until the date of the prepayment. Carter, Terry & Company, Inc. acted as placement agent for the company and will receive a fee of 8% of the total funding. The company shall pay the legal expenses of counsel to the investor, up to $15,000. The company shall pay the due diligence expenses of the investor in connection with the transaction documents, subject to the company's pre-approval for any expenses greater than $1,500, and subject to aggregate due diligence expenses of $5,000. Hartley Moore Accountancy Corporation acted accountant for the company. The company will pay the legal expenses of counsel and pay the due diligence expenses to the purchasers.

On October 17, 2014, WindStream Technologies Inc. (OTCPK:WSTI) closed the transaction. The company announced that it has issued debentures for gross proceeds of $622,500. The debentures issued will mature on October 17, 2015.