FluoroPharma Medical, Inc. (OTCPK:FPMI) announced that it has entered into a note purchase agreement for a private placement of promissory notes for gross proceeds of up to $2,000,000 on May 28, 2015. The transaction will include participation from accredited investors. The notes will mature one year from the date of issuance and bear fixed interest at the rate of 8% per annum. The notes will be convertible at $0.35 per share. The principal and the interest accrued under the notes will automatically convert into the company's next equity or equity-linked financing without any action on the part of the investor, into such securities, including warrants of the company that are issued in the subsequent financing; if the company raises gross proceeds of at least $3,600,000 or convert into a new financing in which the company shall issue to the investor one share of common stock and one-half of one warrant at a purchase price no greater than $0.35 per share. The company will also issue warrants equivalent to 50% of the number of shares such investor would receive upon full conversion of the notes. Each such warrant will be exercisable at $0.75 per share for a period of five years from the date of issue. The company will issue the securities pursuant to exemption provided under Regulation D.

On the same day, the company closed the first tranche.