Community Shores Bank Corp. (OTCPK:CSHB) announced a private placement of a secured convertible promissory note from new investor, 1030 Norton LLC for gross proceeds of $1,280,000 on March 20, 2013. The note will carry an interest of 8% per annum, and will be paid quarterly commencing on April 1, 2013. The note will mature on March 31, 2015. The note is secured by all of the issued and outstanding shares of the company as evidenced by a pledge agreement between the company and the investor. The transaction was reviewed, approved and recommended by a special committee of directors and approved by full board of directors. During the continuance of any event of default the per annum rate of interest payable on the unpaid principal balance of the note will increase from 8% to 10% per annum. The holder of the note will convert any portion of the total principal amount and accrued and unpaid interest of the note into fully paid and non-assessable shares at a per share price equal to 75% of the per share price at which the shares of common stock are offered.

On March 20, 2013, Community Shores Bank Corp. closed the transaction.