| LONG-TERM DEBT |
| |
|
|
|
|
|
Principal
due |
|
|
Principal
due |
|
| Lender |
|
Maturity Date |
|
Interest
Rate |
|
February 29,
2020 |
|
|
August 31,
2019 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Private lenders |
|
January 15, 2020 |
|
10.00% |
|
$ |
200,000 |
|
|
$ |
200,000 |
|
| Private lenders |
|
January 31, 2020 |
|
10.00% |
|
|
373,885 |
|
|
|
567,230 |
|
| Private lenders |
|
September 17, 2019 |
|
10.00% |
|
|
100,000 |
|
|
|
100,000 |
|
| Beverly Pacific Holdings |
|
On demand |
|
5.00% |
|
|
173,259 |
|
|
|
- |
|
| Equipment loans |
|
April 20, 2020 -
November 7, 2021 |
|
4.30 - 12.36% |
|
|
302,425 |
|
|
|
405,628 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
$ |
1,149,569 |
|
|
$ |
1,272,858 |
|
The maturity date of the long-term
debt is as follows:
| |
|
February 29,
2020 |
|
|
August 31,
2019 |
|
| |
|
|
|
|
|
|
| Principal classified as repayable within one year |
|
$ |
1,019,915 |
|
|
$ |
1,057,163 |
|
| Principal classified as repayable later than one year |
|
|
129,654 |
|
|
|
215,695 |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
1,149,569 |
|
|
$ |
1,272,858 |
|
| |
(i) |
On July 3, 2018, the Company received a $200,000 advance from a private lender bearing interest at 10% per annum and repayable on January 15, 2020. The loan is guaranteed by the Chairman of the Board. The loan terms are currently being renegotiated. |
| |
|
|
| |
(ii) |
On October 10, 2014, the Company issued two secured debentures for an aggregate principal amount of CAD $1,100,000 to two private lenders. The debentures initially bore interest at a rate of 12% per annum, were originally scheduled to mature on October 15, 2017 and are secured by all of the assets of the Company. In addition, the Company issued common share purchase warrants to acquire an aggregate of 16,667 common shares of the Company. On September 22, 2016, the two secured debentures were amended to extend the maturity date to January 31, 2017. The terms of these debentures were renegotiated with the debenture holders to allow for the conversion of the secured debentures into common shares of the Company at a rate of CAD $4.50 per common share and to increase the interest rate, starting June 1, 2016, to 15% per annum. On January 31, 2017, the two secured debentures were amended to extend the maturity date to July 31, 2017. Additional transaction costs and penalties incurred for the loan modifications amounted to $223,510. On February 9, 2018, the two secured debentures were renegotiated with the debenture holders to extend the loan to May 1, 2019. A portion of the debenture amounting to CAD $628,585 was amended to be convertible into common shares of the Company, of which, CAD $365,000 were converted on May 1, 2018. The remaining convertible portion is interest free and was to be converted from August 1, 2018 to January 1, 2019. The remaining non-convertible portion of the debenture was to be paid off in 12 equal monthly instalments beginning May 1, 2018, bearing interest at 5% per annum. On September 11, 2018, the remaining convertible portion of the debenture was converted into common shares of the Company and a portion of the non-convertible portion of the debenture was settled through the issue of 316,223 common shares of the Company. On December 13, 2019, the maturity date of the non-convertible portion of the debenture was extended to January 31, 2020 and the interest rate was increased to 10% per annum. The terms of this loan are currently being renegotiated. |
| |
|
|
| |
(iii) |
On October 4, 2018, the Company entered into a debenture line of credit of $9,500,000 from Bay Private Equity and received an advance of $100,000. The debenture matured on September 17, 2019 and bears interest at 10% per annum. As compensation for the debenture line of credit the Company issued 950,000 commitment shares to Bay Private Equity and a further 300,000 shares as a finder’s fee to a third party. |
During April 2015, the Company entered
into two equipment loan agreements in the aggregate amount of $282,384, with financial institutions to acquire equipment for the oil extraction
facility. The loans had a term of 60 months and bore interest at rates between 4.3% and 4.9% per annum. Principal and interest were paid
in monthly installments. These loans were secured by the acquired assets.
On May 7, 2018, the Company entered
into a negotiable promissory note and security agreement with Commercial Credit Group to acquire a crusher from Power Equipment Company
for $660,959. An implied interest rate was calculated as 12.36% based on the timing of the initial repayment of $132,200 and subsequent
42 monthly instalments of $15,571. The promissory note was secured by the crusher.
|