KonaRed Corporation (OTCPK:KRED) announced that it has entered into a security purchase agreement of subordinated promissory note for gross proceeds of $100,000 on December 3, 2015. The transaction included participation from new investor Vista Capital Investments, LLC. The promissory note carries fixed 8% interest rate payable with prepayments of $39,600 of the principal amount and accrued interest due on June 3, 2016, September 3, 2016, and December 3, 2014, respectively.

The promissory note is issued at discount of $10,000 amounting to 9.0909% on the original discount price. In case of default, the company shall pay amount equal to 120% of the outstanding principal and interest due. The promissory note is not secured and is subordinated to the existing senior notes issued by the company.

The company also issued 500,000 restricted common shares as consideration to the investor in the transaction. Shaun Roberts and John Dawe represented the company and David Clark represented the Vista Capital Investments, LLC in the transaction. The company will issue securities pursuant to exemption provided under Regulation D.