Aeolus Pharmaceuticals Inc. (OTCPK:AOLS) announced a private placement of 6% convertible promissory notes for gross proceeds of $1,000,000 with existing investor Biotechnology Value Fund L.P., a fund managed by BVF Partners LP on September 29, 2015. The note carries a fixed interest rate of 6% per annum and would mature September 28, 2016. The outstanding principal and accrued interest on the notes shall automatically convert into company equity securities issued in a qualified transaction at a conversion rate carrying a 15% discount to the lowest price per share issued in a qualified transaction.