FONU2 Inc. (OTCPK:FONU) announced that it has entered into a material definitive agreement with returning investor Carebourn Capital, LP for the private placement of a convertible note for gross proceeds of $28,000 on November 3, 2015. The company issued convertible note on discount of $3,000 which the company paid as expenses. The convertible note carries fixed 12% interest per annum and is due in full on August 3, 2016.

The discount is 9.68% of the principal amount. The note is convertible after 90 days at a 45% discount to the lowest trading price in the 20 trading days prior to conversion date. The note will accrue interest at a rate of 22% per annum in case of default.