AtheroNova Inc. (OTCPK:AHRO) announced that it has entered into a securities purchase agreement for gross proceeds of $5000,000 on September 12, 2014. The company issued convertible debt and an option, warrant or other right to acquire another security pursuant to exemption provided under Regulation D. The company expected to receive $1,000,000 in funding. The company issued senior secured convertible notes.

The transaction included participation from seven accredited investors including existing investor W-Net Fund I, L.P. The notes bear a fixed interest rate of 8% per annum and mature on September 12, 2015. The interest rate shall be increased to 24% from and for the continuation of an event of default on the unpaid and unconverted principal balance. The notes are convertible into shares of our common stock at a conversion price equal to $1.11 per share, subject to customary adjustments in the event of stock splits, reverse stock splits and certain distributions to all holders of common stock.

As of the date of issuance, the notes were convertible into 450,457 shares of our common stock, and the warrants were exercisable for an aggregate of 225,228 shares of our common stock. The company also issued common stock purchase warrants at an exercise price of $2 per share for a period of five years from the date of issuance. As of the date of issuance, the warrants are exercisable for an aggregate of 225,228 shares of common stock.

Fred Knoll, director of the company also participated in the transaction. Louis Wharton of Stubbs Alderton & Markiles, LLP acted as the legal advisor to the company.