XSUNX Inc. (OTCPK:XSNX) announced a securities purchase agreement for the private placement of a 10% unsecured convertible promissory note at $52,000 per note for gross proceeds of $52,000 with an accredited lender on January 11, 2018. The note carries a fixed coupon of 10% per annum and would mature on October 20, 2018. The company has the right to redeem a portion or all amounts outstanding under the note prior to 180 days from issuance of the note under a variable redemption rate premium. After that the holder may convert into shares of common stock at a conversion price to be 65% of the average of the two lowest dollar volume weighted average price during the 15 trading days preceding any conversion date by holder. The company issued the securities pursuant to exemption provided under Section 4(2) of the Securities Act of 1933, and Rule 506 of Regulation D. The company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this agreement or the transactions contemplated hereby. At the closing, the company’s obligation with respect to the transactions contemplated by this agreement is to reimburse the lender’s expenses shall be $2,000 for legal fees and due diligence fee. The transaction is expected to close on or about January 12, 2018, or such other mutually agreed upon time.