Sun BioPharma, Inc. announced a private placement of convertible notes for gross proceeds of $3,000,000 on December 27, 2013. The notes carry a coupon of 5% per annum and would mature on December 2018. The notes are convertible into common stock of the company at an exercise price of $1.125 per share.

On same date, the company has received $700,000 in its first tranche.