World Moto Inc. (OTCBB:FARE) announced that it has entered into a securities purchase agreement for a private placement of two 12% senior secured convertible debenture due 2016 with returning investor Redwood Management LLC for gross proceeds of $500,000 on March 5, 2015. The company will issue first 12% senior secured convertible debenture due 2016 at $50,000 per debenture for gross proceeds of $50,000 and second 12% senior secured convertible debenture due 2016 at $450,000 per debenture for gross proceeds of $450,000. The debenture will be issued with a discount of 8% of par value. The first debenture has a par value of $54,348 and second debenture has a par value of $489,130. The debenture will have a fixed interest rate of 12% per annum. The debenture will be convertible into common shares at a variable conversion price equal to the lesser of $0.03 per share or 50% of the lowest traded price per common share during the 25 trading days prior to the date of conversion. The company will issue securities pursuant to exemption provided under Regulation D. The company will reimburse investor $12,000 for attorney fees.

On the same day, the company issued debenture for gross proceeds of $50,000 in its first tranche. The first debenture will mature on March 5, 2016. The second debenture will be issued upon the effectiveness of a registration statement to be filed by the company.