Sionix Corp. (OTCBB:SINX) Announced a private placement of 6% convertible redeemable note for gross proceeds of $100,000 on September 21, 2012. The note will bear interest of 6% per annum and will mature on September 21, 2013. The company has an optional right of redemption prior to maturity upon a five-day notice and payment of a 50% premium on the unpaid principal amount of the loan. The company paid fees of $6,000 in connection with the funding of this loan. The conversion price for each share of common stock will be equal to 70% of the lowest closing bid price of the common stock for a period of five trading days but not lower than $0.001 per share. In addition, the company received a commitment in the form of a promissory note from the investor pursuant to which it will provide the company with funding of an additional $300,000 of which $100,000 will become available on each of July 1, 2103, August 15, 2013, and October 1, 2013. If the company is able to register the underlying shares of the note and the additional financing on or before December 5, 2012, then the applicable discount rate for all the notes will be reduced from 30% to 25%, and the interest rate charged will be reduced from 6% to 3%.

On the same day, the company issued the 6% convertible redeemable notes.

On September 25, 2012, Sionix Corp. closed the transaction. The company further issued convertible notes for gross proceeds of $1,025,000. The transaction saw participation from several accredited investors. The notes bear interest at the rate of 10% per annum beginning as of September 25, 2012, and mature on June 25, 2013. The company paid and the investors received nine months of pre-paid interest on the original principal amount of the notes. The notes are convertible at any time at the option of the holders into the company's common shares at a conversion price based on 80% of the average of the three lowest closing prices for the common shares during the 10 consecutive trading days immediately preceding the conversion request however the conversion price may not exceed $0.04, and may not be lower than $0.02 per share. The company also issued warrants which entitles the investors to purchase 23,125,000 common shares pro rata in proportion to the amount invested, which can be exercised for a period of five years from the closing date, with a fixed exercise price of $0.08 per share. Convertible Capital acted as placement agent to the company in connection with this transaction. The company paid a cash placement fee to Convertible Capital amounting to 8.54% of the gross proceeds of the transaction. The company in total raised $1,125,000.