Wisdom Homes of America, Inc. (OTCPK:WOFA) announced that it has entered into a securities purchase agreement for a private placement of a 12% convertible promissory note with a returning accredited and sophisticated investor, Carebourn Capital, L.P. for gross proceeds of $35,000 on December 23, 2015. The note will be issued at par. The note carries a fixed coupon of 12% per annum and would mature on September 23, 2016.

The note is convertible after 90 days into the common stock at 42% discount from the average of the three lowest trading prices of the common stock, as reported by any exchange upon which the common stock is then traded, for the 20 trading days prior to the receipt of notice from the investor to exercise this conversion. The note can be prepaid by the company at a premium of 125% of the principal amount if done between 0 and 30 days after issuance, at 130% of the principal amount if done between 31 and 60 days after issuance, at 135% of the principal amount if done between 61 and 90 days after issuance, at 140% of the principal amount if done between 91 and 120 days after issuance, at 145% of the principal amount if done between 121 and 150 days after issuance, and at 145% of the principal amount if done between 151 and 180 days after issuance. There will be no right to prepay the note after 180 days from the issuance.

The company will issue securities pursuant to exemption provided under Regulation D. The company will bear the maximum of $8,000 with respect to the expenses of the investor with respect to the transaction.