eSense-Lab Limited (ASX:ESE) announced a private placement of AUD 250,000 in unsecured loan notes and AUD 895,000 through a conditional issuance of 223,750,000 chess depositary receipts for gross proceeds of AUD 1,145,000 on April 14, 2020. The loan notes have a face value of AUD 0.01, each with a coupon rate of 12% per annum and a maturity date of September 1, 2020. The chess depositary interests will be issued to sophisticated investors at an issue price of AUD 0.004 per chess depositary interest. The investors will also receive one free attaching unlisted option for every 2 chess depositary interests that the investor subscribes for in the transaction. Subject to shareholder approval, at the annual general meeting to be held in late May 2020, each loan note will convert into one chess depositary interest at a conversion price of AUD 0.004 per interest on the maturity date. The loan notes will convert into 62,500,000 chess depositary interest in total and conversion will take place on September 1, 2020. The company will also issue one free attaching unlisted option for every 2 chess depositary interest that are issued to the note holders on conversion. The options will be exercisable at AUD 0.01 each and expire 18 months after their date of issue and will be issued upon conversion of the loan notes. If shareholders do not approve the conversion of the loan notes into chess depositary interests and the issue of the attaching options, the loan notes will be repayable in cash and the maturity date will be extended to December 1, 2020. The interest on the loan notes is payable in cash on conversion or repayment. The transaction is subject to shareholder approval at the annual general meeting. The transaction will include participation from EverBlu Capital Pty Ltd. The transaction is expected to close on May 29, 2020. On the same date, the company has received AUD 250,000 in its first tranche through issuance of unsecured loan notes.