Cyclone Power Technologies, Inc. (OTCPK:CYPW) announced a private placement of convertible debentures and common shares for gross proceeds of up to $420,000 with new investor Peak One Opportunity Fund L.P., a fund managed by Peak One Investments, LLC on December 17, 2013. The company will issue debenture for gross proceeds of $222,000 and shares for gross proceeds of $198,000. The debentures bear an interest of 6% per annum and will mature on December 17, 2016. The debentures are convertible into common stock after 180 days from issuance at a 35% discount to the lowest closing bid price during the previous 20 trading days. Patrick G. Zabatta of Zabatta Group, LLP will serve as legal advisor to investor. The company shall pay to investor a non-accountable fee of $7,500 and 1,000,000 common shares to cover the expenses and analysis performed in connection with the analysis of the company and the propriety of the investor making the contemplated investment. The company will pay the legal fees of $7,500 for the investor. The company further agrees to pay in full the reasonable legal fees of the investor counsel incurred after the closing of the transaction. The securities will be issued pursuant to exemptions provided under Regulation D.

On the same date, the company received gross proceeds of $120,000 and net proceeds of $108,000 in funding.


On December 17, 2013, Cyclone Power Technologies, Inc. closed the transaction. The company intended to raise $420,000 in the transaction.