Rich Pharmaceuticals wraps $119,500 private placements of convertibles

Investors Typenex and Auctism each buy a convertible promissory note

By Devika Patel

Knoxville, Tenn., Sept. 25 – Rich Pharmaceuticals, Inc. sold a $64,500 master convertible promissory note to Typenex Co-Investment, LLC on Sept. 19, according to an 8-K filed Thursday with the Securities and Exchange Commission. It also sold a $55,000 convertible promissory note to Auctus Private Equity Fund, LLC on Sept. 24.

The one-year Typenex note has a $5,500 original issue discount, and there was a further deduction of $4,000 in fees. It is convertible into common shares at a conversion price equal to 60% of the average of the three lowest closing bid prices of the stock during the 20 trading days preceding conversion or, if the stock price is below $0.03, 55% of the of the average of the three lowest closing bid prices of the stock during the 20 trading days preceding conversion.

The Typenex convertible may be prepaid at 125 and carries a one-time interest payment of 12% after 90 days.

The 8% Auctis note includes a deduction of $5,000 of fees for total proceeds to the company of $50,000. It is convertible into common shares at 55% of the average of the lowest two trading prices of the stock during the 25 trading days preceding conversion. The convertible is due on June 23, 2015.

The biopharmaceutical company is based in Beverly Hills, Calif.

Issuer:	Rich Pharmaceuticals, Inc.
Issue:	Master convertible promissory note, convertible promissory note
Amount:	$119,500
Warrants:	No
Stock symbol:	OTCBB: RCHA
Market capitalization:	$16.4 million
Typenex note
Amount:	$64,500
Maturity:	One year
Price:	$5,500 original issue discount (total proceeds of $55,000)
Coupon:	12% (one-time payment)
Conversion price:	60% of the of the average of the three lowest closing bid prices of the stock during the 20 trading days preceding conversion or, if the stock price is below $0.03, 55% of the of the average of the three lowest closing bid prices of the stock during the 20 trading days preceding conversion
Call:	At 125
Investor:	Typenex Co-Investment, LLC
Fees:	$4,000
Settlement date:	Sept. 19
Stock price:	$0.05 at close Sept. 18
Auctis note
Amount:	$55,000
Maturity:	June 23, 2015
Price:	$50,000
Coupon:	8%
Conversion price:	55% of the average of the lowest two trading prices of the stock during the 25 trading days preceding conversion
Investor:	Auctus Private Equity Fund, LLC
Fees:	$5,000
Settlement date:	Sept. 24
Stock price:	$0.04 at close Sept. 23

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