SpendSmart Networks, Inc. (OTCPK:SSPC) announced a private placement of a 12% convertible secured drawdown promissory note at $376,000 per note for gross proceeds $376,000 with existing investor, Techno-Ventures Hong Kong Limited on July 15, 2015. The note was issued at discount. The company issued securities pursuant to exemption provided under Regulation D. The note is for a term of six months.

The note bears fixed rate of interest of 12% per annum and is secured by the assets of the company. The note may be converted into shares of the company's common stock at fixed conversion price of $0.75 per share. The company also issued the holder warrants to purchase 500,000 shares of the company's common stock.

The warrants have an exercise price of $0.75 per share and have a term of two years. In the event that company has not fully paid the $400,000 by the maturity date or upon an event of default, then the company shall accrue a penalty of $200 per day, until the $400,000 plus the default interest has been paid in full.