Peer to Peer Network (OTCPK:PFNI) announced that it has entered into a securities purchase agreement for a private placement of two 8% convertible redeemable notes due July 17, 2016 at $31,500 per note for gross proceeds of $63,000 on July 17, 2015. The transaction will include participation from new accredited investor, LG Capital Funding, LLC. The notes carry a fixed coupon of 8% per annum and would mature on July 17, 2016. The notes are convertible into common shares of the company at a conversion price equal to 50% of the average of the three lowest trading price in the 28 trading day period prior to the conversion. Interest is payable in cash only. The notes are redeemable and the company is required to pay off all principal balance, interest and any other amounts owing multiplied by 118% if prepaid within 30 days of the issuance date, 124% if prepaid within 31 and 60 days after the issuance date, 130% if prepaid within 61 and 90 days after the issuance date, 136% if prepaid within 91 and 120 days after the issuance date, 142% if prepaid within 121 and 150 days after the issuance date, and 148% if prepaid within 151 and 180 days after the issuance date. There shall be no redemption after the 180 day. The company will issue the securities pursuant to exemption provided under Regulation D. The company shall reimburse the buyer for expenses incurred by them, amounting to $3,000 in legal fees.

On the same date, the company announced that it has received $31,500 in the first tranche.