CV Holdings, Inc. (OTCPK:CVHL) announced that it has received $500,000 in a round of funding on September 30, 2014. The company issued senior preferred shares in the transaction. The transaction included participation from a real estate private equity firm.

The company also issued 4,148,532 warrants in the transaction. The warrants are partially exercisable upon issuance with the remainder subject to vesting as the preferred shares is funded and in certain other circumstances. The investor has the option to invest further $7,500,000 subject to terms and conditions.

The preferred shares will bear dividend of 10% and will be optionally redeemable by the company under certain circumstances. The investor will have the right to demand a mandatory redemption starting with the third anniversary, depending on the circumstances. The further tranches are subject to investor approval and no assurance can be given that it will be carried out.