KonaRed Corporation (OTCPK:KRED) announced that it has entered into a securities purchase agreement with PCF Holdings Group, LLC for private placement of 12,500,000 units at an issue price of $0.024 per unit for gross proceeds of $300,000 on December 6, 2016. Each unit consists of one common share and three separate warrant classes. Each warrant entitles the holder to purchase one common share of the company at an exercise price of $0.055 per share for a term of five years, an exercise price of $0.20 per shares for a term of three years and an exercise price of $0.25 per share for a term of 18 months. Initially, the company intended to issue 28,500,000 units for gross proceeds of $940,000. The company intended to issue 12,500,000 units at a price of $0.024 for gross proceeds of $300,000 in its first tranche, 12,500,000 units at a price of $0.04 per unit for gross proceeds of $500,000 in its second tranche, 3,500,000 units at a price of $0.04 per unit for gross proceeds of $140,000 in its third tranche. The company issued securities pursuant to exemption provided under Regulation D.