FONU2 Inc. (OTCPK:FONU) announced that it has received a convertible debenture note at a price of $25,000 per note for gross proceeds of $25,000 in round of funding from an unrelated third party on August 26, 2014. The company and the investor entered into an agreement for the transaction. The note accrues interest at the rate of 12% per annum and will mature on August 25, 2017. The note are convertible into common shares of the company at any time after 6 months and up to 1 year from the issuance date at a 20% discount to the market price of the shares. The discount will be 25% if converted between 1 and 2 years, and will be 30% if converted after 2 years. The maximum conversion price will be $0.50 per share. The company issued the securities pursuant to exemption provided under Regulation D.


On August 25, 2014, FonU2, Inc. (OTCPK:FONU) closed the transition.