Inolife Technologies Inc. said it is proceeding with a nonbrokered private placement of unsecured convertible promissory notes to raise up to $3 million in gross proceeds.

The notes will be non-transferable with a term of 12 months from the date of issue, bearing an interest rate of 8% payable annually in arrears.

Principal under the notes would be convertible by lenders into, and payable by the company in, the common shares at $1 per share. The private placement is expected to close on or about June 30.

Inolife CEO Michael Wright said that the fundraising is targeted at bridging the company's financial requirements and allow it to immediately launch sales and marketing efforts for Inojex30 needle-free injector for insulin and other drugs.

The company has engaged Maxim Group to provide it with strategic corporate planning and investment banking services. Maxim Group LLC is a significant shareholder of the company and will not serve as a placement agent for the offering.