Cachet Financial Solutions, Inc. (OTCBB:CAFN) announced that it has entered into a securities purchase agreement for private placement of a convertible note for gross proceeds of $250,000 on January 4, 2017. The transaction will include participation from new investor David Boehnen. The company will also issue 42,674 warrants in the transaction. The company will issue note at discount of 5.2632%. The note does not bear any interest and is payable in January 2018. The note is convertible into common shares of the company at any time before the maturity date at a conversion price equal to the lower of $7 and 80% of the price per share of the company in its next underwritten public offering. The warrants entitles the holder to acquire one additional common share at a price equal to lower of $5.55 and 80% of the price per share of its common share in its next underwritten public offering, subject to adjustments for a period of five years from the date of issue. The company will issue securities pursuant to exemption provided under Regulation D.