Armco Metals Holdings, Inc (AMEX:AMCO) announced that it has entered into a securities purchase agreement for a private placement of senior convertible notes for gross proceeds of $800,000 with a new investor Hanover Holdings I, LLC on November 4, 2013. The company will issue one senior convertible note at $300,000 per note for gross proceeds of $300,000. The initial note will have a principal amount of $450,000 at an approximately 33.33% original issue discount. The company will issue one senior convertible note at $500,000 per note for gross proceeds of $500,000. The additional note will have a principal amount of $500,000. The initial convertible note carries a coupon of 4% per annum and would mature on November 7, 2014. Additional convertible note will mature on the date that is the one-year anniversary of the date of issuance of the additional convertible note. The initial convertible note provides and, if issued, the additional convertible note will provide for a default interest rate of 18%. The notes are convertible at any time, in whole or in part, at option, common shares, at a conversion price equal to the variable conversion price. The company may exercise its right to purchase the additional convertible note on the additional closing date by delivering to the company, on, or within 10 days following. The effective date of the registration statement, the company has exercised its right to require investor to purchase the additional convertible note. The company will issue securities pursuant to exemption provided under Regulation D. Anthony J. Marsico, of Greenberg Traurig, LLP will act as legal advisor to the investor. The company will pay $35,000 of reasonable attorneys' fees and expenses in connection with the transaction. The company agreed to pay to the investor a commitment fee for entering into the purchase agreement equal to $24,000 or 3.0% of the total purchase price for the convertible notes under the agreement in the form of 47,022 shares of common shares, calculated using a per share price of $0.5104, representing the average of the daily volume weighted average prices of a share of common stock for the three trading days immediately preceding the closing date.

On November 8, 2013, the company closed its first tranche. The company received $300,000 in funding.

On February 26, 2014, the company announced that it expects to close the second tranche of the transaction on March 3, 2014.

On March 3, 2014, Armco Metals Holdings, Inc closed the transaction.