Diversified Resources Inc. (OTCPK:DDRI) announced a private placement for gross proceeds of $10,000,000 on July 1, 2015. The company will issue 1,000 units at $10,000 per unit. Each unit consists of 10,000 shares of the company's series A preferred stock and 2,500 warrants. Each warrant allows the holder to purchase one share of the company's common stock at a price of $1.50 per share at any time on or before July 31, 2018. The preferred shares and warrants will be offered and sold to accredited investors only.

Each series A preferred share will be entitled to a dividend of $0.10 per share, payable annually, in cash, with the first dividend payable 12 months following the closing of the transaction. Dividends not paid will cumulate at the company's option, dividends may be paid in shares of the company's common stock. If dividends are to be paid in shares of common stock, the number of shares to be issued in payment of the dividend will be determined by dividing the amount to be paid by the average closing price of the company's common stock for the 10 trading days which precede the dividend payment date by five trading days.

At the holder's option, the series A preferred shares are convertible, in increments of not less than 10,000 shares, into shares of the company's common stock on the basis of one share of preferred stock for one share of the company's common stock. The series A preferred shares are redeemable, in whole or in part, at the company's option, any time after 36 months from the date of the closing of the offering, upon 30 days' written notice and payment of $1.20, plus all accrued dividends for each share to be redeemed. The preferred shares and warrants may not be sold without the registration of the securities.