Avalanche International, Corp. (OTCPK:AVLP) announced that it has entered into a securities purchase agreement to issue 8% convertible redeemable promissory note at for gross proceeds of $115,000 with new accredited investor Adar Bays, LLC on May 12, 2015. The front end note bears a fixed interest rate of 8% per annum and interest coming due on May 12, 2016.

The note is convertible in whole or in part in the shares of the company, at the option of the holders. The conversion price is 60% of the lowest reported trading price of common stock during the twenty trading days prior to and including the conversion date. This note shall initially be secured by the pledge and is transferable by nature.

Pre-payment of the front end note will result in certain penalties depending on the time of pre-payment, and will not be allowed after 180 days. The company will reimburse $5,000 as legal fees to the investor and pay due diligence fees of $10,000. The net proceeds of the front end note are $100,000.