DEBT |
|
|
|
|
|
|
|
Principal
due |
|
|
Principal
due |
|
Lender |
|
Maturity
Date |
|
Interest
Rate |
|
|
May
31,
2021 |
|
|
August 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Private
lenders |
|
On
demand |
|
|
10.00 |
% |
|
|
105,000 |
|
|
|
115,000 |
|
Private
lenders |
|
August
31, 2020 |
|
|
5.00 |
% |
|
|
506,193 |
|
|
|
468,547 |
|
Private
lenders |
|
On
demand |
|
|
10.00 |
% |
|
|
- |
|
|
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
611,193 |
|
|
$ |
683,547 |
|
The
maturity date of debt is as follows:
|
|
May
31,
2021 |
|
|
August 31,
2020 |
|
|
|
|
|
|
|
|
Principal
classified as repayable within one year |
|
$ |
611,193 |
|
|
$ |
683,547 |
|
Private
lenders
|
(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 nine months ended May 31, 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. |
|