Galahad Metals Inc. (TSXV:GAX.H) announced a private placement of 15% convertible notes for gross proceeds of CAD 500,000 on April 9, 2014. The transaction will include participation from existing investor Firebird Global Master Fund Holdings LTD for CAD 400,000 in the transaction. The note carries a coupon of 15% per annum. The interest is payable commencing on April 12, 2014. The notes are convertible into 500,000 units of the company at a conversion price of CAD 0.10 per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase additional common share of the company at a price of CAD 0.20 per share until April 1, 2016. The common shares and warrants underlying the conversion are post-consolidation shares of the company. The shareholders will vote on the consolidation at the annual and special meeting, scheduled for May 28, 2014. The interest amount will be payable in cash payment. The investor will have the right, upon prior written notice to the company, to convert the interest amount, into common shares at the conversion price. In any such case, within five business days of the date of the interest conversion notice, the company will issue the corresponding common shares along with a certificate evidencing such common shares to investor.

On April 14, 2014, Galahad Metals Inc. closed the transaction. Each warrant will entitle the holder to purchase additional common share of the company until April 8, 2016. The interest payment will commence on May 1, 2014. The investors also have the right to demand payment of interest accruing under the note in post-consolidation common shares of the company at a price of CAD 0.20 per share.