Algae Dynamics Corp. announced that it has entered into a securities purchase agreement for a private placement of one 12% convertible redeemable note due September 2, 2016 for gross proceeds of $25,000 with new accredited investor, RY Capital Group, LLC on September 2, 2015. The senior note carries a fixed coupon of 12% per annum and would mature on September 2, 2016.

The note is convertible into common shares of the company at a variable conversion price equal to a 45% discount from the lowest trading price in the 20 trading days prior to the day. The note includes customary event of default provisions, and provides for a default interest rate of 24%. The company has the right at any time prior to March 1, 2016 to redeem all, but not less than all, of the total outstanding amount then remaining under the note in cash at a prices ranging from 115% to 139% of the total amount of the note then outstanding.

The company will issue the securities pursuant to exemption provided under Regulation D. The company shall reimburse the buyer for expenses incurred by them, amounting to $2,000 in legal fees.