Kleangas Energy Technologies, Inc (OTCPK:KGET) announced that it has received $885,000 in funding in first quarter of 2014. The company issued five convertible notes in the transaction. The company issued first note for $275,000 of which the initial consideration shall be $75,000 and the investor may pay additional consideration of up to $175,000, which may be funded at any time prior to the maturity date at the investor's sole discretion. The convertible note shall be interest free for 90 days. In the event that the convertible note is not repaid within ninety days, the convertible note will have a one-time interest charge of 10%. The convertible note shall be convertible into shares of the Company, which conversion price shall mean 50% multiplied by the lowest trade price in the 20 trading days prior to the measurement date.

The company issued second note, 10% convertible promissory note with a principal amount of $250,000. The second note will mature on January 8, 2015 and purchase price will be $27,500 of consideration upon execution of a note purchase agreement. Interest on any outstanding principal balance shall accrue at a rate of 10% per annum. In the event of a default, interest will accrue at the rate equal to the lower of 20% per annum or the highest rate permitted by law. The investor shall have the right, at the investor's option, at any time to convert the outstanding principal amount and Interest under the note in whole or in part. The conversion price shall be equal to the lower of $.0027 or 60% of the lowest trading price of the company's common stock during the 25 consecutive trading days prior to the date on which the investor elects to convert all or part of the note.

The company issued third and fourth note for gross proceeds of $120,000 of which $60,000 will be paid in cash upfront against delivery of the note and remaining will be secured by $30,000 in value of assets. The third note will mature in twelve months from the date of issuance and shall carry an interest rate of 8% per annum. The principal and accrued interest under the note will be convertible into shares of common stock of the Company at a 45% discount to the lowest daily closing bid with a 10 look back.

The company issued fifth note for gross proceeds of $300,000. The note shall not carry any interest rate and will mature in two years from the date of issue. The note shall be convertible into shares of common stock at the lesser of $0.0018 or 60% of the lowest trade price in the 25 trading days previous to the conversion.

In first quarter of 2014, Kleangas Energy Technologies, Inc closed the transaction.