WindStream Technologies, Inc. announced a private placement of its secured convertible promissory note for gross proceeds of $250,000 with new accredited investor, Typenex Co-Investment, LLC, on September 26, 2014. The principal amount of the note is $550,000 and it includes a $50,000 of original issue discount interest. The company will receive $250,000 in cash and $250,000 in two investor notes in the principal amount of $125,000 each. The convertible promissory note pays interest at a fixed rate of 10% per annum, is due in thirteen months, and is convertible into shares of common stock at a conversion price of $0.80 per share or a price decided according to a formula using the lowest bid price of the company's common stock for a period before the date of conversion. The principal payment on the convertible promissory note is due after six months from the date of the note in the amount of $68,750 and will be paid in cash or in common stock of the company. The convertible promissory note is convertible in three tranches. The company also issued three five year warrants to purchase shares of its common stock equal to the value of the investor notes equal to $250,000 plus original issue discount interest of $25,000. The warrants will be exercisable at $0.80 per share or at a price adjusted as per the price of the company's common stock at the date of the conversion. The company also paid $5,000 to the investor to pay its legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the transaction.

On September 26, 2014, WindStream Technologies, Inc. closed the transaction.