Novagen Ingenium Inc. (OTCPK:NOVZ) announced a private placement of convertible debentures with for gross proceeds of $1,000,000 on September 30, 2013. The investors will provide the loan as part of a revolving line of credit secured by convertible debentures. The transaction will include participation from new Australian investors, Michael Sparavec, Allan Smerdon, and Beverley Smerdon.

Allan Smerdon and Beverley Smerdon will invest a combined amount of $500,000 and Michael Sparavec will invest $500,000. The debentures will accrue interest at a rate of 5% per annum and will be due and payable on the maturity date. The debentures will have a maturity of three years from the issuance.

The company has the right to prepay the amount without any penalty or bonus. The company shall give the notice for the redemption to the investor, not more than 21 days and not less than seven days prior to the date fixed in notice for redemption. The debentures will be convertible at a rate of one common share for each $0.25 of principal amount, amounting to a total of 4,000,000 common shares.