FONU2 Inc. (OTCPK:FONU) announced a private placement of convertible notes for gross proceeds of $100,100 on October 9, 2015. The transaction included participation from returning investor LG Capital, LLC which invested $35,100 and another investor Centurian Fund, LLC which invested $65,000. The notes are convertible into common shares of the company at conversion price equal to 55% of the lowest daily closing bid price of the company's common shares for the last 20 trading days prior to conversion.

The note issued to LG Capital, LLC carries a fixed coupon of 8% per annum and would mature on October 8, 2016 and the note issued to Centurian Fund, LLC carries a fixed coupon of 18% per annum and would mature on October 1, 2016. The note issued to Centurian Fund, LLC also includes 81,250,000 warrants with an exercise price of $0.0008 per share for a period of five years.