Drone USA, Inc. announced that it expects to receive $0.11 million in funding from Auctus Private Equity Management, Inc.
January 25, 2018
Share
Drone USA, Inc. (OTCPK:DRUS) announced that it has entered into a securities purchase agreement for private placement of a convertible note for gross proceeds of $105,000 on January 26, 2018. The transaction will include participation from Auctus Fund, LLC. This note may not be prepaid in whole or in part except as otherwise explicitly set forth herein with the written consent of the Holder which may be withheld for any reason or for no reason. The Note is convertible common shares conversion rate for any unpaid principal and interest at a 35% discount to the market price which is defined as the average of the two lowest trading prices for the company’s common stock during the 15 trading day period ending on the latest complete trading day prior to the date of conversion. The company is entitled to prepay the note between the issue dates until 180 days from its issuance but not thereafter. The note carries a fixed interest of 10% per annum and will mature on October 26, 2018. The note issued at par. The note was issued pursuant to exemption provided under rule 501(a) of Regulation D. The company will pay legal fee of $2,750 and 7,250 for due diligence.
Bantec, Inc. is a product and service company targeting the United States government, state governments, municipalities, hospitals, universities, manufacturers and other building owners. The Company provides product procurement, distribution, and logistics services through its wholly owned subsidiary, Howco Distributing Co. (Howco) to the United States department of defense and defense logistics agency. The Company, through Bantec Sanitizing, offers sanitizing products and equipment through its new store bantec.store. The Company sells drones and related products manufactured by third parties to various parties, primarily local government entities. Its drone programs constitute selling its customers drones, drone accessories, accident reconstruction software, drone training, drone services, counter-drone technology, certificates of authorization (COAs) and Waivers. The Company has operations based in Sparta, New Jersey and Vancouver, Washington.