Acacia Diversified Holdings, Inc. (OTCPK:ACCA) announced that it has entered into a securities purchase agreement for a private placement of a senior convertible debenture due November 2020 for gross proceeds of $360,000 with accredited investor, Peak One Opportunity Fund, L.P., a fund managed by Peak One Investments, LLC on March 25, 2017. The debenture carries zero coupon and would mature in November 2020. Any amount of principal or interest that is due under each convertible debenture, which is not paid by the respective maturity date, will bear interest at the rate of 18% per annum. The debenture is convertible into common shares of the company at a conversion price per share equal to either if no event of default has occurred under the respective convertible debenture and the date of conversion is prior to the date that is 180 days after the issuance date of the respective convertible debenture $1.60, if an event of default has occurred or the date of conversion is on or after the date that is 180 days after the issuance date, the lesser of $1.60 or 70% of the second lowest closing bid price of the common stock for the 20 trading days immediately preceding the date of the date of conversion of the debentures. The debenture is issued at an original issue discount of 10%. The debenture may redeem for an amount if the redemption date is 90 days or less from the date of issuance of the respective convertible debenture, 105% of the sum of the principal amount so redeemed plus accrued interest, if the redemption date is greater than or equal to 91 days from the date of issuance of the respective convertible debenture and less than or equal to one 120 days from the date of issuance of the respective convertible debenture, 110% of the sum of the principal amount so redeemed plus accrued interest, if the redemption date is greater than or equal to 121 days from the date of issuance of the respective convertible debenture and less than or equal to one 150 days from the date of issuance of the respective convertible debenture, 120% of the sum of the principal amount so redeemed plus accrued interest, if the redemption date is greater than or equal to 151 days from the date of issuance of the respective convertible debenture and less than or equal to 180 days from the date of issuance of the respective convertible debenture, 130% of the sum of the principal amount so redeemed plus accrued interest, and if either the respective convertible debenture is in default but the investor consents to the redemption notwithstanding such default or the redemption date is greater than or equal to one hundred eighty 181 days from the date of issuance of the respective convertible debenture 140% of the sum of the principal amount so redeemed plus accrued interest. The company will issue the securities pursuant to exemption provided under Regulation D. The company will pay a non-accountable fee of $2,500.00 on the first closing, $1,000.00 on the second closing and third closing each. On the same date, the company announced that it has received $90,000,000 in the first tranche of the transaction. The company will close the second tranche at any time 61 to 90 days following the first closing date. The company will close the third tranche at any time 61 to 90 days following the second closing date.