KonaRed Corporation (OTCPK:KRED) announced that it has entered into a securities purchase agreement for private placement of a senior convertible note at a price of $270,000 per note with existing investor, Lincoln Park Capital Fund, a fund managed by Lincoln Park Capital for gross proceeds of $300,000 on November 23, 2015. The note carries a fixed interest at the rate of 5% per annum, or 18% upon the occurrence of an event of default, and will mature on December 31, 2016. The note included a $30,000 original issuance discount.

The company has the right to prepay the note, pursuant to the terms thereof, at any time, provided it pays a prepayment amount of 120% of the then outstanding balance, accrued interest and interest payable from the date of prepayment to the maturity date. The conversion price of the note is $0.05, as adjusted for stock splits, stock dividends, stock combinations or other similar transactions as provided herein. The company also granted the investor a six-year warrant to purchase 5,000,000 shares of its common stock at an exercise price of $0.07 per share.