CannaSys, Inc. (OTCPK:MJTK) announced that it has entered into a securities purchase agreement for private placement of 8% convertible redeemable promissory note due December 12, 2017 for gross proceeds of $57,500 on December 12, 2016. The transaction will include participation from returning investor Adar Bays, LLC. The note carries fixed interest rate of 8% per annum commencing on December 12, 2016 and maturity date of December 12, 2017. The company will issue note at par. The outstanding amount due under the note is immediately convertible into restricted shares of the company after 180 days from the date of issue at the investor’s discretion, at 50% of the lowest trading price for the common shares for the 25 consecutive prior trading days immediately preceding the conversion date, with some exceptions. In the event, if the note is prepaid within less than 30 days from the date of issuance, the company shall pay 118% of the principal plus accrued interest, if within 31-60 days, the company shall pay 124% of the principal plus accrued interest, if within 61-90 days, the company shall pay 130% of the principal plus accrued interest, if within 91-120 days, the company shall pay 136% of the principal plus accrued interest, if within 121-150 days, the company shall pay 142% of the principal plus accrued interest, and if within 151-180 days, the company shall pay 148% of the principal plus accrued interest. The note will not be prepaid after the 180 day. The company expects to close the transaction on or about December 12, 2016 or such other date mutually agreed upon time. Michael Tew represented the company and Samuel Eisenberg represented the investor in the transaction.