Health Discovery Corporation (OTCPK:HDVY) announced a private placement of convertible promissory notes for gross proceeds of $300,000 on October 23, 2017. The transaction included participation from returning investors, George H. McGovern, III, Chairman and Chief Executive Officer of the company and James Dengler. The notes carry fixed interest rate of 8% per annum and are due on January 1, 2019. The promissory note is senior to all unsecured indebtedness of the company. The notes are convertible at a conversion price obtained by dividing all principal and accrued but unpaid interest under the promissory note or by $0.004 per share. As part of the transaction, the investors are entitled to appoint two additional board members to the board of directors of the company.