DEBT |
|
|
|
|
|
|
|
Principal
due |
|
|
Principal
due |
|
Lender |
|
Maturity
Date |
|
Interest
Rate |
|
|
February
28, 2021 |
|
|
August 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Private lenders |
|
On demand |
|
|
10.00 |
% |
|
|
105,000 |
|
|
|
115,000 |
|
Private lenders |
|
August 31, 2020 |
|
|
5.00 |
% |
|
|
481,733 |
|
|
|
468,547 |
|
Private lenders |
|
On demand |
|
|
10.00 |
% |
|
|
- |
|
|
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
586,733 |
|
|
$ |
683,547 |
|
The
maturity date of debt is as follows:
|
|
February 28, 2021 |
|
|
August 31, 2020 |
|
|
|
|
|
|
|
|
Principal classified as repayable within one year |
|
$ |
586,733 |
|
|
$ |
683,547 |
|
Principal classified as repayable later than one year |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
586,733 |
|
|
$ |
683,547 |
|
|
(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 September
2, 2018. The loan is guaranteed by the Chairman of the Board. During the year ended August 31, 2020 the Company repaid $35,000 of
the principal outstanding and a further $10,000 during the six months ended February 28, 2021. On July 6, 2020 in accordance with
the terms of a debt settlement agreement entered into, the lender converted $50,000 into 1,250,000 shares at a conversion price of
$0.04 per share. |
|
(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. Effective January 31, 2020, the terms of the debenture were renegotiated and the maturity date was
extended to August 31, 2020. The maturity date of the debentures 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. On September 23, 2020, the principal amount of the debenture of
$100,000 plus accrued interest of $18,904 was converted into 2,161,892 shares at a conversion price of $0.055 per share. |
|