Solar Wind Energy Tower, Inc. (OTCPK:SWET) announced a private placement of a 10% convertible promissory note for gross proceeds of $885,000 on June 3, 2014. The company signed the purchase agreement with a new investor, JDF Capital, Inc. The note will carry an interest rate of 10% per annum and will mature on June 3, 2015. The note will be convertible into the common shares of the company at a variable conversion price equal to 42% discount to the lowest closing price of the common stock for the 15 trading days immediately prior the conversion date, subject to a maximum conversion price of $0.03 per share. In the event of default, the investor has the right to require the company to repay in cash all or a portion of the note at a price equal to 120% of the aggregate principal amount of the note plus all accrued but unpaid interest. The company will also issue 7,000,000 warrants exercisable into the common shares of the company at $0.05 per share for a period of 150 days from the effective date of the registration statement and 8,750,000 warrants exercisable into the common shares of the company at $0.04 per share for a period of 90 days from the effective date of the registration statement. The company will close the first tranche of the transaction for $555,000 on the day of the execution of the purchase agreement and remaining amount within 15 business days of effectiveness of the registration statement. The company will issue securities pursuant to exemption provided under Regulation D. The proceeds to be received comprise of the principal sum of $800,000 and $5,000 in expenses incurred by the investor.

On June 9, 2014, the company announced that it has received $555,000 the first tranche of the transaction. The second tranche of $333,000 can be completed within 15 days of the effectiveness of a registration statement.