RadTek, Inc. (OTCPK:RDTK) announced that it will receive $20 million in an equity line transaction from new sophisticated investor, Dutchess Opportunity Fund, II, LP, a fund managed by Dutchess Capital Management, LLC on April 22, 2014. Pursuant to the investment agreement, the company will issue up to 40,000,000 common shares to the investor. The shares will be issued at a price per share equal to 95% of the lowest daily volume weighted average price of the common shares for the five consecutive trading days following delivery of the put notice.

The company will receive funding in draw downs equal to 300% of the average daily United States market value of the common share for three trading days prior to the date of the put notice or $300,000. The investor cannot acquire more than 4.99% of the total common shares outstanding of the company as of the closing date. The transaction will be terminated when the company has received the gross proceeds or on April 22, 2017.

The company will issue securities pursuant to exemption provided under Regulation D. If the company does not issue the shares within five days of the put notice, it will have to pay a cumulative late fee for each trading day. The company will pay $15,000 for the preparation of equity line document.