Location Based Technologies, Inc. (OTCBB:LBAS) announced a private placement of secured convertible promissory notes for gross proceeds of $1,000,000 on December 10, 2012. The transaction will see participation from ECPC II Capital, LLC a company managed by Alfred G. Allen. The notes bears interest at a rate of 8% per annum and have a term of 6 months and are convertible at $0.20 per share. The loan is secured by a security interest in two of the company's patents which the company considers to be non-core. Gregory S. Harrison will act as a placement agent to the company.

On January 29, 2013, the company amended the terms of the transaction. The amended note will be due on July 30, 2013.