CannaSys, Inc. (OTCPK:MJTK) announced that it has entered into a securities purchase agreement for a private placement of a 12% convertible promissory note for gross proceeds $35,750 on December 7, 2016. The transaction included participation from existing investor, Auctus Private Equity Management, Inc. The note carries fixed interest rate of 12% per annum and will mature on September 7, 2017. The note is convertible into common shares of the company at a conversion price equal the lesser of 50% multiplied by the lowest trading price representing a discount rate of 50% during the previous 25 trading day period ending on the latest complete trading day prior to the date of this note; and at a variable conversion price, which is subject to equitable adjustments for stock splits, stock dividends or rights offerings by the borrower relating to the borrower's securities or the securities of any subsidiary of the borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events. The note may not be prepaid in whole or in. Any amount of principal or interest on this note which is not paid when due shall bear interest at the rate of 24% per annum from the due date until the same is paid. The company will issue securities pursuant to exemption provided under Regulation D. At closing, the company will reimburse investor’s legal expenses of $2,750 plus the cost of wire fees.