Elephant Talk Communications Corp. (AMEX:ETAK) announced a private placement of unsecured promissory note for gross proceeds of $500,000 on January 22, 2016. The note carries an interest of 16% annually and has a maturity date of January 3, 2018.

The buyer may loan an additional $1,500,000 to the company within the next ten days. If the additional $1,500,000 loan will not be fully funded by the buyer by January 25, 2016, the company will issue certain 9% unsecured subordinated convertible promissory note for gross proceeds of $500,000, which will be convertible into shares of common shares, having $0.00001 par value and a conversion price of $.30 per share and a five-year warrant to purchase 1,666,667 shares at an exercise price of $0.45 per share, subject to certain exceptions. Upon issuance of the 9% note and warrant, the 16% note shall be superseded in its entirety.