Spectrascience Inc. (OTCPK:SCIE) announced a private placement on best effort basis of 5% original issue discount unsecured convertible debentures for gross proceeds of $106,316 on December 31, 2012. The transaction will see participation from three accredited investors. The debentures are initially convertible into common shares at $0.099 per share. The debentures carry an interest rate of 16% per annum and payable on the maturity date. The debentures mature on June 30, 2013. The company may pay interest due either in cash or in common shares at a conversion price of $0.099. The company will also issue five-year warrants to purchase such number of shares equal to 50% of the number of shares of common stock initially issuable upon conversion of the debentures. The warrants are exercisable at $0.1287 per share till December 31, 2017. The conversion price of the debentures and the exercise price of the warrants are subject to customary adjustment provisions for stock splits, stock dividends, recapitalizations and the like. The company paid the placement agent a cash fee and will issue agent warrants to purchase shares at $0.1287 per share.

On December 31, 2012, Spectrascience Inc. closed the transaction.