Elite Data Services Inc. (OTCBB:DEAC) announced that it has entered security purchase agreement for 12% convertible note for gross proceesds of $100,000 for on June 11, 2015. The 12% convertible note carry fixed 12% interest per annum commencing from the date of issuance and maturity date on or after December 11, 2015. The transaction included participation from JSJ Investments Inc. for 12% convertible note. The convertible note is convertible into common stock of the company.

The 12% convertible note may be paid 135% of redemption premium until 90 days after the date of issuance, after 90 days to 120 days from the date of issuance, the company may pay 145% cash redemption premium, and after 120 days the company has a 145% cash redemption premium. The company announced that in case of default for 12% convertible note, the interest rate shall increase to 18% per annum. The 12% convertible note will be converted at fixed conversion price of 45% discount to the lowest trading price during the previous 20 days to the date of conversion notice. The company issued securities pursuant to exemption provided under Regulation D.