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 $78,000 on October 18, 2018. The transaction included participation from existing investor PowerUp Lending Group, Ltd. The note carries a fixed coupon of 12% per annum and will mature on October 18, 2019. 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 received net proceeds of $75,000. The company has issued securities pursuant to exemption provided under Regulation D.