Vape Holdings, Inc. (OTCPK:VAPE) announced a private placement of an unsecured convertible promissory note at $510,000 per note for gross proceeds of $510,000 with accredited new investor, Typenex Co-Investment, LLC on December 3, 2014. The company entered into a securities purchase agreement with the investor. The original principal amount of note is $560,000. The note bears interest at the rate of 10% per annum and is convertible into common shares of the company at a conversion price per share of 70% of the average of the three lowest closing sale prices in the 10 trading days immediately preceding the applicable conversion. The conversion floor price will not be less than $0.50 per share. Repayment of principal on the note, together with accrued interest, is due in twelve monthly installments, commencing six months from issuance. The company may make such payments in cash or in common shares. The company will pay premium of 25%, if the company will repay note in cash. The maturity date of the note is seventeen months from the date of issuance. The company paid to investor's transaction expenses of $10,000, which includes investor's legal fees, accounting costs, due diligence, monitoring, and other expenses. The notes were issued at original issue discount of $50,000. The company paid a finder's fee in the amount of $25,000 in connection with this transaction. If the company exercises its right to prepay this note, it shall make payment to investor of an amount in cash equal to 125%. The transaction has been approved by board of directors of the company. The company issued the securities pursuant to exemption provided under Regulation D. Christopher L. Tinen of Horwitz + Armstrong, LLP acted as legal advisor to the company. Jonathan K. Hansen of Hansen Black Anderson Ashcraft PLLC acted as legal advisor to the investor.

On December 3, 2014, Vape Holdings, Inc. closed the transaction. The company has received $510,000 in funding.