Hemp Naturals, Inc. (OTCPK:HPMM) announced that it has entered into a securities purchase agreement for a private placement of one 12% secured convertible promissory note for gross proceeds of $58,500 on February 28, 2019. The transaction included participation from existing investor Bellridge Capital, LP. The note carries a fixed coupon of 12% per annum and will mature on February 28, 2020. The company issued 10% discount. The promissory note will be convertible into shares at variable conversion price equal to 55% of the lowest trading price of the company’s common stock during the 20 trading days ending on the latest complete trading prior to conversion. The company can prepay the note in 30, 60, 90,120,150, or 180 days following the issue and the pre-payment penalty is based on outstanding balance multiplied by 120%, 125%, 130%, 135%, 140%, or 145% respectively. After 180 days company shall not have any pre-payment right. The company paid $5,000 as fees and other expenses. The company received $53,500 as net proceeds. The company has issued securities pursuant to exemption provided under Regulation D.