Pillarstone Capital REIT (PRLEQ)

[db7]

ok.. not as interesting as I first thought.. jumped the gun after reading the sc13... it's really just money for notes to keep things going


Form 8-K for PARAGON REAL ESTATE EQUITY & INVESTMENT TRUST


20-Nov-2015

Entry into a Material Definitive Agreement, Unregis



Item 1.01 Entry into a Material Definitive Agreement
Five trustees of Paragon Real Estate Equity and Investment Trust ("Paragon") loaned funds to Paragon, each pursuant to a Convertible Note Purchase Agreement (the "Agreement"). Each trustee loaned the following amounts, which can be converted into Common Shares of Paragon, as follows:




Trustee Amount Convertible into Common Shares
Daryl J. Carter $ 28,888 21,703
Daniel G. DeVos $ 47,780 35,897
Paul T. Lambert $ 51,112 38,401
James C. Mastandrea $ 52,224 39,236
John J. Dee $ 17,776 13,355




The convertible notes were issued effective November 20, 2015, have a maturity date of three years, and accrue interest at 10% per annum.

The convertible notes can be called by Paragon after six months, at which time the noteholder can choose to receive either the amount of the note plus any accrued but unpaid interest or the number of Common Shares determined by dividing the amount of the note plus any accrued but unpaid interest by the conversion price of $1.331. The noteholder has the option at any time to convert the note plus any accrued but unpaid interest into Common Shares based on the conversion price of $1.331.

The foregoing description of the form of the Agreement is not complete and is qualified in its entirety by reference to the full and complete terms of the Agreement, which is attached to this current report on Form 8-K as Exhibit 10.1.





Item 3.02 Unregistered Sales of Equity Securities.
The Convertible Notes issued to each trustee pursuant to the Agreements, each as disclosed in Item 1.01 of this report, which Item 1.01 is incorporated herein by reference, were not registered under the Securities Act of 1933, as amended (the "Act"), in reliance on the exemption from registration provided by Section 4(2) of the Act.