BLU Autoworks LLC announced a private placement of secured convertible notes for gross proceeds of $3,000,000 on December 22, 2015. The company has entered into a security purchase agreement and may receive $4,000,000 in the transaction. The transaction will include participation from new investor Deer Valley Corporation.

The note bears fixed interest rate of 5% per annum and matures on June 30, 2016. The notes are secured by the assets of the company and will be issued at par. Deer Valley Corporation at its option can convert the outstanding principal and interest of the notes into membership interests in the company.

J. Steven Lawler represented the investor in the transaction. The investor will provide the consideration to the company in one or more tranches. The notes will not be payable in cash before the maturity.