CannaSys, Inc. (OTCPK:MJTK) announced that it has signed a securities purchase agreement for the private placement of a convertible promissory note with a returning accredited investor, Auctus Private Equity Management, Inc. for gross proceeds of $45,750 on July 20, 2016. The note is unsecured and accrues a fixed interest at 10% per annum. The note will bear a fixed interest rate of 24% per annum in the case of default. The note is due and payable on April 20, 2017. The note will be convertible into restricted common shares after July 20, 2016, at investor's sole discretion, at the conversion price of 55% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. The note can be prepaid at any time, during the period beginning on the closing and ending on the 30th day following the closing at 125% of the amount to be repaid, during the period beginning the 31st day from the closing and ending on 60th day from the closing at 130% of the amount to be repaid, during the period beginning on 61st day from the closing and ending on 90th day at 135% of the amount to be repaid, during the period beginning on 91st day and ending on 120th day at 140% of the amount to be repaid, during the period beginning on 121st day and ending on 150th day at 145% of the amount to be repaid, during the period beginning on 151st day and ending on 180th day at 150% of the amount to be repaid, and after the expiration of the 180 days, the company shall have no right of prepayment. The company will incur maximum expenses of $2,750 with respect to the investor's legal expenses and will pay to $3,000 to the investor to cover its due diligence, monitoring, and other transaction costs. The company has agreed to file a Form D with respect to the securities as required under Regulation D.