Wisdom Homes of America, Inc. (OTCPK:WOFA) announced that it has entered into a securities purchase agreement for a private placement of a 10% convertible promissory note with accredited and sophisticated existing investor, Carebourn Capital, L.P. for gross proceeds of $29,500 on June 26, 2015. The note will be issued at a discount of 6.557377%. The convertible note carries a fixed coupon of 10% per annum and will mature on June 26, 2016.

The note is convertible after 180 days into company's common stock at the greater of the variable conversion price, represents 42% multiplied by the market price and the fixed conversion price means $0.00001. Market price means the average of the lowest three trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date. The note can be prepaid by the company at a premium of 120%, if it is prepaid between 0 and 90 days after issuance, if it is prepaid between 91 and 120 days after issuance, at a premium of 130%, if it is prepaid between 121 and 180 days after issuance, at a premium of 140%.

The company agrees to pay $3,000 to the holder for the legal expenses. The company will issue securities pursuant to exemption provided under Regulation D.