Gold Lakes Corp. (OTCPK:GLLK) announced that it has entered into a securities purchase agreement for a private placement of senior convertible notes having a principal amount of $285,000 to be issued at a discount for gross proceeds of $585,000 on March 11, 2016. The transaction will include participation from new investor, Himmil Investments Ltd. The notes will bear a fixed interest rate of 8% per annum.

The notes would mature on March 11, 2017. The notes are convertible into common shares of the company at a conversion price of the lowest trade price of the common shares during the 20 consecutive trading days ending and including the trading day immediately preceding the applicable conversion date and 50% and $1.10. The company will also issue 521,875 warrants in the transaction.

Each warrant will entitle the holder to purchase one common share at $1 per share and will expire after 3 years of the issuance. The company will issue the securities pursuant to exemption provided under Regulation D. The company will pay non-accountable and non-refundable document preparation fee of $35,000 in the transaction. The minimum investment accepted from any outside investor is $160,000.

The notes are issued at an original issue discount of 46.7%. The company expected to receive $835,000 in the transaction. The company has received $160,000 pursuant to exemption provided under Regulation D.