Medican Enterprises, Inc. (OTCPK:MDCN) announced that it has entered into a securities purchase agreement on best efforts basis for a private placement of an 8% convertible promissory note for gross proceeds of $43,000 with an existing accredited investor KBM Worldwide, Inc. on November 17, 2014. The note carries a fixed interest rate of 8% per annum and would mature on August 20, 2015. The note may not be prepaid in whole or in part. Any amount of principal or interest on the note which is not paid when due shall bear interest rate at 22% per annum from the due date until the same is paid. Beginning May 13, 2014, the principal and interest paid on the note is convertible into common stock, at the investor's option, at a 42% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion, subject to adjustment. The company may prepay the note in full by paying off all principal, interest and any other amounts owing multiplied by 115% if prepaid during the period commencing on the issue date through 30 days thereafter, or 120% if prepaid between 31 days and 60 days following the issue date or 125% if prepaid between 61 days and 90 days following the issue date or 130% if prepaid between 91 days and 120 days following the issue date or 135% if prepaid between 121 days and 150 days following the issue date, and 140% if prepaid between 151 days and 180 days following the issue date. After the expiration of 180 days following the date of the note, the company has no right of prepayment. Pursuant to the agreement with the investor, the company also granted the investor a right of first refusal, for a period of six months following the closing date, to participate in certain future equity or debt with equity component financings less than $100,000. The company will issue securities pursuant to exemption provided under Regulation D. The company expects to close the transaction on or about November 20, 2014, or such other mutually agreed upon time. Judah A. Eisner and Bernard S. Feldman of Naidich Wurman Birnbaum & Maday LLP will act as the legal advisors to the investor. The company will reimburse the investor's expenses for the transaction in the amount of $3,000.

On November 26, 2014, Medican Enterprises, Inc. closed the transaction.