Fragrant Prosperity Holdings Limited (LSE:FPP) announced that it has issued convertible loan notes for gross proceeds of £210,000 on December 13, 2019. The transaction included participation from Stanley Hutton Rumbough. The loan notes carry an interest rate of 5% per annum, which is to be rolled up and added to principal quarterly until the earlier of conversion or repayment of the relevant notes. The notes are repayable at the option of the company at any time after 3 months following issue and all the notes must be repaid as a bullet payment on the second anniversary of issue. The notes can be converted into ordinary shares of the company at a price of £0.02 by a note holder at any time on notice provided that the company is able to issue the relevant shares under the prospectus regulation. Pursuant to the subscription agreement the company provided a number of warranties and undertakings in respect of the company. The company has also issued an option to the lender to subscribe for further notes with a principal value of a further £110,000 on or before 30 April 2020.