According to the Wise Money APP, Color Star Technology (ADD.US) announced on Friday that it has signed securities purchase agreements with certain institutions, purchasing up to $7.6 million in principal amount of senior secured convertible notes at an original issue discount of 8%, with a maturity period of up to twelve months from the date of issue, expected to bring about $7 million in net proceeds to the company.

The convertible notes carry an annual interest rate of 6% and can be converted into Class A common stock of the company 45 days after the initial delivery date, with an initial conversion price equal to $1.60 or the lower of the alternative conversion prices specified in the convertible notes.

The first delivery is expected to take place around September 30th.