Joey New York, Inc. (OTCPK:JOEY) announced a securities purchase agreement for a private placement of a promissory note with Kodiak Capital Group, LLC for gross proceeds of $540,000 on May 3, 2017. The note carries a fixed coupon of 24% per annum and would mature nine months after the issuance. The note is convertible into common shares of the company at a conversion price of $1 per share or 50% of the lowest trading price for the common stock for the 30 days immediately prior to conversion. The note issued at an original issue discount of 10%. The company will also issue 800,000 warrants with a cashless exercise price of $0.75 per share. The note may be prepaid at the company's option at 130% multiplied by the total outstanding amount of the note at the time of prepayment. On the same date, the company announced that it has received $135,000 in the first tranche of the transaction.