MetaStat, Inc. (OTCPK:MTST) announced that it entered into a note purchase agreement for a private placement of original issue discount promissory notes with existing institutional investor Dolphin Offshore Partners LP, a fund managed by Dolphin Management Inc. and other investors for gross proceeds of $1,000,000 on February 12, 2016. The notes mature six months following the issuance date of each note and may be prepaid by the company at any time prior to the maturity date without penalty or premium. The company will also issue warrants to purchase 7,273 common shares for every $100,000 invested at an exercise price of $8.25 per share for a period of five years. Each investor has the right at its option to exchange the principal amount of the note into such number of securities to be issued in a qualified offering. The company will issue securities pursuant to exemption provided under Regulation D. The company has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions, or finders' fees in connection with the transactions.

On same date, the company has received funding in its first tranche.