Hotel Outsource Management International Inc. (OTCPK:HOUM) announced a private placement with for gross proceeds of $200,000 on November 7, 2013. The round will include participation from Daniel Cohen, President and Consultant and Director, who will invest $50,000 and shareholder of the company and existing investor, Tomwood Limited, which will invest $150,000. The investors will provide loan to the company. The loan will bear interest at a rate of 8% per annum. The principal and all accrued interest shall be repaid in 16 consecutive quarterly payments commencing April 1, 2014 and on the first day of each calendar quarter, ending with the final payment on January 1, 2018. The company has also provided a two-year grace period for the principal of the loan, with the result that the first eight quarterly repayments shall consist of accrued interest only, while the final eight quarterly payments will consist of principal plus accrued interest, commencing April 1, 2016. The company may elect to repay all or any portion of the outstanding loan and/or accrued interest in shares within 30 days of closing an equity investment of $600,000 or more. The loan will be convertible at a conversion price such that the outstanding balance of the loan plus accrued Interest shall be reduced, at the time of issue of such shares, by the quantity of shares so issued multiplied by the price per share.

On the same date, the company received $150,000 in first tranche closing. Daniel Cohen invested $50,000 and Tomwood Limited invested $100,000 in this tranche. The funds were wired through company's subsidiary, HOMI Israel Ltd.

On November 18, 2013, the company announced that it has entered into the agreement.

On December 7, 2013, the company and the investors signed the agreement.