VAPE HOLDINGS, INC. Vape Holdings, Inc. (OTCPK:VAPE) announced that it has entered into a material definitive agreement for private placement of series B preferred stock convertible notes for gross proceeds of $50,000 on December 10, 2015. The transaction will include participation from existing investor HIVE Ceramics, LLC. The maturity date of the notes is December 10, 2016.
The note will bear a fixed interest rate of 8% per annum, and will be issued at par value. Note shall accrue at an interest rate equal to the lesser of 16% per annum, compounded daily, or the maximum rate permitted under applicable law in event of default. The notes are convertible into series B preferred shares at $0.01 per share.
The series B preferred shares will be convertible into 30,000,000 common shares. The transaction has been approved by board of directors of the company.
