Lionhub Group Limited (ASX:LHB) announced a private placement of convertible notes with sophisticated investors for gross proceeds of AUD 3,500,000 on August 8, 2017. The convertible notes will include class A notes and class B notes at a face value of AUD 0.05 respectively and will be issued in batches having an aggregate face value of not less than AUD 20,000. The class A notes shall have a term of 5 years with interest of 9% per annum payable at the end of each quarter on conversion or redemption and class B notes shall have term of 5 years with interest of 13.8% per annum payable on conversion or redemption. The company has the right to redeem the notes by paying the full face value together with all accrued but unpaid interest in full at any time after 30 months following the date of issue, subject to giving each note holder not less than 21 days notice in writing. The face value of the notes together with any accrued but unpaid interest will be converted at 80% of the volume weighted average price of the company's ordinary shares over the 15 trading days prior to the date of conversion. The notes will be freely convertible at the option of each note holder in multiples of 50,000 at any time during the term. S.LH Corporation Pte Ltd, a company associated with the company’s Chairman, CK Kho, has agreed to participate the raising by subscribing up to AUD 1,000,000 in fresh funds if the company fails to raise AUD 3,500,000.