Tofutti Brands Inc. (AMEX:TOF) has entered into a loan agreement for private placement of a promissory note for gross proceeds of $500,000 on January 6, 2016. The promissory note is issued to individual investor David Mintz bearing a fixed interest rate of 5% per annum commencing March 31, 2016 on a quarterly basis without compounding. The loan may be prepaid in whole or in part at any time without premium or penalty.

The note is convertible into common shares of the company at a fixed price of $4.01 per share. The note will mature on December 31, 2017. Steven J. Glusband of Carter Ledyard & Milburn LLP acted as a legal advisor to the company.