Medican Enterprises, Inc. (OTCPK:MDCN) announced that it has entered into a note purchase agreement for a private placement of a 10% convertible promissory note with new investor Tangiers Investment Group, LLC for gross proceeds of $200,000 on November 25, 2014. The note carries a fixed coupon of 10% per annum and would mature on November 25, 2015. The note is convertible into common shares of the company at a conversion price equal to 58% of the lowest trading price of its common stock during the ten consecutive trading days prior to the date on which investor elects to convert all or part of the investor note. The note is issued at an original issue discount of $20,000 for gross proceeds of $220,000. The company agrees to pay all reasonable charges and expenses, including attorneys' fees and expenses, which may be incurred by the holder in successfully enforcing this note and/or collecting any amount due under this note. The investor note may be prepaid in whole or in part by the company within 180 days for 135% of the face value of the investor note plus accrued interest. After 180 days, the investor note may not be prepaid without the consent of all parties.

On December 9, 2014, Medican Enterprises, Inc. (OTCPK:MDCN) closed the transaction. The company has received $82,500 in its first tranche of which $75,000 shall be remitted and delivered to the company, and $7,500 shall be retained by the purchaser through an original issue discount for due diligence and legal bills related to this transaction. Tangiers Investment Group, LLC has the option to finance additional amounts, up to the balance of the $220,000, within 180 days from the date of the note.