AnythingIT, Inc. (OTCPK:ANYI) announced that it has entered into a securities purchase agreement with a private placement of two convertible promissory notes at a price of $50,000 each for gross proceeds of $100,000 with new accredited investor Union Capital, LLC on August 21, 2014. The note carries a one-time simple interest rate of 8% and is due and payable on August 21, 2015. The first note is convertible into shares of the company at any time on or after the issuance date at a conversion price equal to 50% multiplied by the lowest trading price of the common shares on the relevant market or exchange for the 15 prior trading days, including the date on the applicable notice of conversion price. In the event of DTC Chill, the first note conversion price will be equal to 40% multiplied by the lowest trading price of the common shares on the relevant market or exchange for the 15 prior trading days, including the date on the applicable notice of conversion. The company may prepay first note within 90 days of the issuance date by paying 130% of the outstanding principal plus any accrued but unpaid interest, and after 90 days, but before 181 days, after the issuance date, by paying 145% of the outstanding principal plus any accrued but unpaid interest. The first note cannot be prepaid after the 180th day. The second promissory note was initially paid by the investor for a purchase price of $50,000. The second note is only convertible into common shares at the conversion price after full cash payment by the investor by all principal and interest due under third note. The company may opt out of the closing of second note by giving investor a written notice at least 15 days before the end of the six month period immediately following the issuance date. The second note may not be prepaid by the company. However, if first note is prepaid within 6 months of the issuance date, then all of investor's obligations and the company's obligations under second and third note will be deemed satisfied, and will be cancelled in full. If the company does not repay the notes by the maturity date, then the total outstanding principal at that time will increase by 10%. All amounts due under the notes become immediately due and payable at investor's sole discretion, upon the occurrence of an event of default. The company issued securities pursuant to exemption provided under Regulation D. The company paid a total consulting fees of $10,000 to Anubis Capital Partners and legal fees of $5,000 to New Venture Attorneys, P.C.

On the same date, the company issued a third promissory note for an original principal amount of $50,000. The third note bears simple interest of 8% per annum and is due and payable on April 21, 2015. The third note initially secured by issuance of second note. However, if second note is cancelled required under Rule 144 of the Securities Act, then the parties' obligations under second note and third note will be cancelled in full. The investor may exchange third note for other collateral with an appraised value of at least $50,000 by providing three days prior written notice to the company, so long as the company do not object within those three days. All amounts due under third note become immediately due and payable by investor upon the occurrence of an event of default, including but not limited to investor's failure to pay the amounts due at maturity or the initiation of any bankruptcy or insolvency proceedings by or against investor.

On August 21, 2014, AnythingIT, Inc. closed the transaction.