Spectrascience Inc. (OTCPK:SCIE) announced a private placement on best efforts basis of unsecured convertible debentures for gross proceeds of $950,000 on September 3, 2013. The debentures will be issued at 5% original issue discount on the value of $1,000,000. The debentures are convertible into common shares at a conversion of $0.045 per share. The company will also issue five-year warrants to purchase such number of shares equal to 50% of the number of shares of common stock initially issuable upon conversion of the debentures, at an exercise of $0.09 per share. The company will pay interest to the holder at an interest rate of 10% per annum on principal being converted on any voluntary conversion date and will pay interest to the holder at the same rate on the maturity date of September 3, 2014 and September 9, 2014, respectively. The company may pay interest due either in cash or in shares. The warrants are exercisable until the warrant termination date of September 3, 2018 and September 9, 2018, respectively. The company will issue securities pursuant to exemption provided under Regulation D. John Evey will act as finder and consultant to the transaction and will receive a cash fee of $40,000 warrants to purchase shares with an equivalent value of $45,000. These warrants will have an exercise price of $0.09 per share and will expire December 31, 2020.

As of September 9, 2013, the company has received $500,000 from two accredited investors.

On October 25, 2013, the company announced that it has amended the terms of the transaction. The company will pay interest to the holder at an interest rate of 10% per annum on principal being converted on any voluntary conversion date and will pay interest to the holder at the same rate on the maturity date of October 25, 2014 and November 4, 2014, respectively. The warrants are exercisable until the warrant termination date of October 25, 2018 and November 4, 2018, respectively.

As of January 9, 2014, the company has received $1,250,000 from four investors. The company will now receive $2,500,000 in this round. The company will pay finders' fees of $245,000; of which $45,000 will be paid in warrants.

On February 11, 2014, and February 20, 2014, the company announced that it has received $368,421.05 from two accredited investors.