Sigma Labs, Inc. announced that it has entered into a securities purchase agreement with investors for aggregate proceeds of $2,100,000 on January 27, 2020. The company will issue 1,600 series D convertible preferred stock at a price of $1,000 per share for gross proceeds of $1,600,000. The Series D preferred stock will include participation from Brio Capital Master Fund Ltd., a fund managed by Brio Capital L.P. for 256 shares amounting to $249,937, Anson Investments Master Fund LP, a fund managed by Anson Group for 554 shares amounting to $540,032, Iroquois Master Fund Ltd., a fund managed by Iroquois Capital Management L.L.C. for 830 shares amounting to $810,031. The preferred stock will have a dividend rate of 9% per annum commencing on March 1, 2020. The company will also issue 333.33 series E convertible preferred stock at a price of $1,500 per share for gross proceeds of $499,500. The series E will have dividend rate of 9% per annum. The holders of the Series E preferred shares have the right at any time to convert all or a portion of preferred stock into shares of the company’s common stock at an initial conversion rate determined by dividing the conversion amount by the conversion price and is subject to adjustment for stock splits, dividends recapitalizations and similar events. The series D convertible preferred stock will have initial conversion price of $1.00 per share or at an alternative conversion price, which equals the lower of the applicable conversion price then in effect, and the greater of $0.1856 as the floor price and, or 85% of the average volume weighted average price of the common stock for a five trading day period prior to such conversion less than $0.95. The company will also issue class A warrants to purchase company’s common stock. The class A warrants will have a term of 5 years 6 months. The class A warrants will not be exercisable initially until six month and one day after the closing and will have initial exercise price of equal to 110% of the conversion price of the series E preferred stock and is subject to adjustment for stock splits, dividends, recapitalizations and similar events. The company will also issue warrants to purchase 6,156 of additional Series D Preferred Stock, which, if exercised in full, would result in additional gross proceeds to the company of approximately $6,000,000. This preferred warrants will have a term of 1 year and shall have right to exercise up to 512 preferred warrants subject to certain equity conditions, resulting in gross proceeds of approximately $500,000. The initial exercise price for the preferred warrants is $975 per share, which is subject to adjustment for stock splits, dividends, recapitalizations and similar events. The company also issued warrants to purchase up to an aggregate of 7,796,000 of the company’s common stock. The institutional common warrants have initial exercise price of $1 per share and is subject to adjustment for stock splits, dividends, recapitalizations and similar events and, unless shareholder approval is obtained by the company, subject to a floor of $0.95 and will have a term of 5 years 6 months. All the securities issued in the transaction is pursuant to exemption provided under Regulation D. The transaction is subject to approval from the shareholder in the shareholder meeting to be held not later than March 30, 2020. The transaction is expected to close on or about January 28, 2020. On January 28, 2020, company announced that the minimum amount accepted from any outside investor is 25,000.