XcelMobility Inc. (OTCPK:XCLL) announced a private placement of a convertible promissory note for gross proceeds of $61,000 on November 17, 2014. The transaction included participation from new accredited investor KBM Worldwide, Inc. The note carries a fixed interest rate of 8% per annum and would mature on November 17, 2015. The principal amount of the note is $61,000 and is being issued at an original issue discount of $7,000.

Any amount of principal or interest on the note which is not paid when due shall bear interest rate of 22% per annum from the due date until the same is paid. The interest shall commence accruing on the date that the note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. The company prepays the note in full to pay off all principal, interest and any other amounts owing multiplied by 112% if prepaid during the period commencing on the closing date through 30 days thereafter, 117% if prepaid 31 days following the closing through 60 days following the closing, 122% if prepaid 61 days following the closing through 90 days following the closing, 127% if prepaid 91 days following the closing through 120 days following the closing, 132% if prepaid 121 days following the closing through 150 days following the closing, and 137% if prepaid 151 days following the closing through 180 days following the closing.

The note becomes convertible 180 days after the date of issuance. The principal amount of the note and any accrued interest can be convertible into shares of the company's common stock at a price of 75% multiplied by the market price, which is the average of the lowest three trading prices for the common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date. The company issued securities pursuant to exemption provided under Regulation D.