Salon Media Group Inc. (OTCPK:SLNM) announced that it has entered into a purchase agreement for private placement of up to 2,417,471 series A mandatorily convertible voting preferred shares at $1.24 per share for gross proceeds of $2,997,664.04 on January 24, 2017. Each preferred share will be convertible into 100 common shares at a fixed conversion price of $0.0124 per share. The company expects to close the transaction in two tranches. The company expects to close the first tranche on January 24, 2017 for minimum $1,000,000 and expects to close the second tranche no later than February 23, 2017. The company shall pay expenses not exceeding $50,000.