Wisdom Homes of America, Inc. (OTCPK:WOFA) announced that it has entered into a securities purchase agreement for a private placement of an 8% convertible redeemable note due January 28, 2017 with a returning accredited and sophisticated investor, LG Capital Funding, LLC for gross proceeds of $44,000 on January 27, 2016. The note will be issued at par. The note carries a fixed coupon of 8% per annum and would mature on January 28, 2017. Interest accrued on the Notes shall be payable in shares of the common stock. The note is convertible after 180 days into the common stock at 50% discount from the lowest trading prices of the common stock, as reported by any exchange upon which the common stock is then traded, for the 20 trading days prior to the receipt of notice from the investor to exercise this conversion. The conversion price shall be subject to a minimum conversion price of $0.0001 per share, but in the event that the minimum conversion price is triggered, the conversion discount shall increase from 50% to sixty percent 60%, calculated against the minimum conversion price.

The note can be prepaid by the company at a premium of 120% of the principal amount if done between 0 and 90 days after issuance, at 130% of the principal amount if done between 91 and 150 days after issuance, and at 140% of the principal amount if done between 151 and 180 days after issuance. There will be no right to prepay the note after 180 days from the issuance. The company will pay $2,000 in legal fees for the transaction. The company will bear all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the investor in collecting any amount due under this note.