Flitways Technology, Inc. (OTCPK:FTWS) announced that it has entered into security purchase agreement with EMA Financial LLC for gross proceeds of $105,750 on July 14, 2017. The company issued a convertible promissory note in the principal amount of $110,000 at a price of $105,750 per note. The note carries coupon rate of 10% per annum and has maturity date of July 14, 2018. The notes are convertible into common shares of the company at a price of $0.10 per share. The company will also issue five year warrant to acquire 187,500 common shares of the company at an exercise price of $0.12. The investor does not have the right to convert the note, to the extent that it would beneficially own in excess of 4.9% of the company’s outstanding common stock. During the 180 day period from the issuance of the note, it has the right to require the company to redeem the outstanding balance on the note for 135% of all unpaid principal and interest if the redemption date is within 90 days of the issue date and 155% of all unpaid principal and interest if the redemption date is on or after the 91st day following the issue date. Except as set forth in the note, the failure to redeem will not be deemed to be an event of default under the note but will result in an adjustment to the conversion price. In the event of default, the amount of principal and interest not paid when due bear default interest at the rate of 24% per annum and the note becomes immediately due and payable. The company will reimburse expense of investor up to $6,500.