P2P Transport Limited (ASX:P2P) announced that it has entered into an agreement with MEF I, L.P.; a fund managed by Magna Management LLC for a private placement of 2,133,410 senior secured convertible notes at a price of AUD 1.401 ($1) per note for gross proceeds of AUD 3,000,000 on February 22, 2019. The note carries a face value of AUD 1.5411 ($1.1) each. The company will issue note at discount. The convertible notes bear no interest. The company will redeem the convertible notes over a 15 months period, with 60 days before the first redemption and then redemptions are due on a monthly basis over the remaining 13 months. The convertible notes are convertible into maximum of 11,702,504 shares at a conversion price lesser of AUD 0.65 per share or 90% of the lowest daily volume weighted average price during the ten actual trading days prior to the payment date. The company will pay a commitment fee equal to 5% of the subscription price of the convertible securities, being AUD 150,000. The commitment fee must be paid by the issue of shares to the note-holder at an issue price equal to the lowest daily volume weighted price of shares during the 5 trading days prior to the date of issue of the convertible securities. The company has agreed to issue 366,763 shares in satisfaction of the commitment fee representing an issue price of AUD 0.409 per share. The company expects to close the transaction on February 28, 2019.