Rich Pharmaceuticals settles $43,000 private placement of convertibles

8% convertible due Aug. 28, 2015 was sold to KBM Worldwide in deal

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 – Rich Pharmaceuticals, Inc. sold a $43,000 convertible promissory note to KBM Worldwide, Inc. on Dec. 1, according to an 8-K filed Friday with the Securities and Exchange Commission. The company received $40,000 after deducting $3,000 of legal fees.

The 8% note is due on Aug. 28, 2015 and is convertible into common shares after 180 days at a price equal to 58% of 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 last trading day prior to conversion. It may be prepaid at 140 during the first 120 days following the issue date.

The biopharmaceutical company is based in Beverly Hills, Calif.

Issuer:	Rich Pharmaceuticals, Inc.
Issue:	Convertible promissory note
Amount:	$43,000
Maturity:	Aug. 28, 2015
Coupon:	8%
Conversion price:	58% of market price, which is the average of the lowest three trading prices for the common stock during the 10-trading-day period preceding conversion
Call:	Yes
Warrants:	No
Investor:	KBM Worldwide, Inc.
Fees:	$3,000
Settlement date:	Dec. 1
Stock symbol:	OTCBB: RCHA
Stock price:	$0.0098 at close Nov. 28
Market capitalization:	$6.3 million

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