XcelMobility Inc. (OTCPK:XCLL) announced a private placement of a convertible promissory note for gross proceeds of $100,000 on August 14, 2014. The transaction included participation from new investor KBM Worldwide, Inc. The note carries a fixed interest rate of 8% per annum and would mature on August 21, 2015. The principal amount of the note is $110,000 and is being issued at an original issue discount of $10,000.

The note becomes convertible 180 days after the date of issuance. The principal amount of the note and any accrued interest can be convertible into shares of the company's common stock at a price of 75% multiplied by 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 latest complete trading day prior to the conversion date. The company paid $1,750 as legal fees to the investor.

The company has received net proceeds of $98,250 in the transaction.