Rx Safes, Inc. (OTCBB:RXSF) announced a private placement of one convertible promissory note at $50,000 per note with new investor, Kodiak Capital Group for gross proceeds of $50,000 on October 7, 2015. The note has a face value of $60,000. The note bears an interest rate of 8% per annum and will mature on October 7, 2016.

Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 20% per annum from the due date thereof until the same is paid. During the first 180 days following the date of the note, the company has the right to prepay the note with no prepayment penalty. The note is convertible into shares of the company at price equal to 65% multiplied by the average of the three lowest trading prices on the OTCQB during the previous 10 trading day period ending on the latest complete trading day prior to the conversion date.

The note can be converted at the conversion price at any time after 180 days at the option of the investor. The investor will not own shares which will result into it owning more than 9.99% of the outstanding shares of the company. The company issued the note pursuant to exemption provided under Regulation D.