On July 24, 2014, Kleangas Energy Technologies, Inc (OTCPK:KGET) closed the transaction. The company issued 720 series F preferred shares for gross proceeds of $720,000 in the transaction. The company announced that it has entered into a stock purchase agreement for private placement of up to 12,000 series F convertible preferred stock at a price of $1,000 per share with the accredited investor.

The company issued securities pursuant to exemption provided under Regulation D. In the first purchase of preferred shares, the investor has agreed to purchase the number of shares equal to the lesser of 150 preferred shares; and 400% of the average daily trading volume of the common shares for the twenty trading days prior to the filing of the registration statement divided by 1,000. The board of directors of the company authorized the issuance of the commitment shares in accordance with the terms and provisions of the stock purchase agreement. During the open period, which is the period beginning on the earlier of 30 days after the payment for the first purchase shares and 192 days after the agreement date and ending on the earlier to occur of the date which is 48 months from July 24, 2014, the company may in its sole discretion deliver a put notice to the investor which consists the number of preferred shares to be issued to the investor on a closing date.

The maximum number of preferred shares that the company shall be entitled to put to investor shall not exceed the lesser of 400% of the average daily trading value of the common shares for the twenty trading days prior to the put notice divided by 1,000; and maximum monthly purchases limit. During the open period, the company shall not be entitled to submit a put notice more than once in any thirty-day period. On not less than the 13th trading day put notice, If the average volume-weighted average price of common share for the ten trading days is less than 85% of the average of the volume-weighted average prices of common share for the ten trading days prior to such date, then the purchase price for each preferred share for such put notice shall be reduced to an amount equal to such percentage multiplied by the purchase price.

The closing of each purchase by the investor of the preferred shares shall occur on the date which in the 13th trading day following the put notice. No brokers, finders or financial advisory fees or commissions will be payable by the company. The Company shall pay all stamp and other taxes and duties levied in connection with the transaction.