Spectrascience Inc. (OTCPK:SCIE) announced a private placement on best effort basis of an unsecured convertible debenture and a 5% original issue discount unsecured convertible debenture with two accredited investors for gross proceeds of $356,376 on February 11, 2014. The company issued the unsecured convertible debenture at principal amount of $6,376 and the 5% original issue discount unsecured convertible debenture at a principal amount of $368,421.05 for proceeds of $350,000. The debentures carry a coupon of 10% per annum and would mature on February 12, 2015 and February 20, 2015 respectively.

The unsecured convertible debenture issued at a discount of 5% of the original issue price. The company may pay interest due either in cash or, at its option, in shares of its common stock, subject to customary conditions being met. The unsecured convertible debenture is convertible into common stock of the company at $0.045.

The company also issued a five year warrant to purchase such number of shares of the company equal to 50% of the number of shares of common stock initially issuable upon conversion of the debenture at an exercise price of $0.09 per share. The company will pay the consultant fee of $28,000 in connection with the transaction. The warrant will mature on February 12, 2019 and February 20, 2019, respectively.

The company issued the securities pursuant to exemption provided under Regulation D.