BEESFREE, Inc. (OTCPK:BEES) announced a private placement of 3,099 series B cumulative convertible preferred stock at $175 per stock for gross proceeds of $542,325 on October 10, 2012. The company also issued series B warrants in the transaction exercisable into common shares of the company at an exercise price of $2.62 per share for a period of five years from the date of issuance. The securities were issued pursuant to Regulation D. The preferred stock is convertible into common shares of the company at a conversion price of $1.75 per share for a period of three years. The preferred stock will automatically convert into common shares of the company at the end of three years. The preferred shares will pay dividend of 12% per annum to the holder. Each preferred share being issued is initially convertible into 100 common shares of the company. The company intended to issue 22,857 series B cumulative convertible preferred stock and 309,900 series B warrants in the transaction.

On October 10, 2012, BEESFREE, Inc. closed the transaction.