Reven Housing REIT, Inc. (OTCBB:RVEN) announced a private placement of convertible promissory notes for gross proceeds of $500,000 on January 3, 2013. The transaction saw participation from accredited investors. The convertible promissory notes will have an interest of 10% per annum and will mature at the earlier of December 31, 2013 or the date on which the company consummates an equity financing in which it sells shares for gross proceeds $5,000,000 or more. The notes may be convertible into common shares of the company if the company consummates such financing prior to December 31, 2013. The company also issued five year warrants in the transaction. The warrants will be exercisable into common shares of the company at the price equal to the price of the shares to be issued in the equity financing for gross proceeds of $5,000,000 or more. The securities were issued pursuant to exemptions provided under Regulation D. Returning investor, Reven Capital subscribed for convertible promissory notes and warrant for gross proceeds of $400,000.


On January 3, 2013, Reven Housing REIT, Inc. closed the transaction. The transaction saw participation from two investors.