Pacifichealth Laboratories Inc. (OTCPK:PHLI) announced a private placement of 123.77 convertible preferred shares at $7,000 per share for gross proceeds of $866,390 on April 1, 2013. Each share is convertible into 100,000 common shares of the company at $0.07 per common share and carries 8% cumulative dividend. The company also issued warrants to purchase 4,331,950 per share at $0.10 per share. The transaction included participation from Fred Duffner, the President and the Chief Executive Officer of the company and each of the four members of company's board of directors. The company did not pay any fees or expenses. The securities were issued pursuant to exemption provided under Regulation D.

On April 1, 2013, Pacifichealth Laboratories Inc. closed the transaction.