| DEBT |
| |
|
|
|
|
|
|
Principal due |
|
|
Principal due |
|
| Lender |
|
Maturity Date |
|
Interest Rate |
|
|
May 31,
2019 |
|
|
August 31,
2018 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Private lenders |
|
December 2, 2018 |
|
|
10.00 |
% |
|
$ |
200,000 |
|
|
$ |
200,000 |
|
| Private lenders |
|
May 1, 2019 |
|
|
5.00 |
% |
|
|
557,501 |
|
|
|
632,512 |
|
| Private lenders |
|
September 17, 2019 |
|
|
10.00 |
% |
|
|
100,000 |
|
|
|
- |
|
| Private lenders |
|
July 28, 2020 |
|
|
10.00 |
% |
|
|
- |
|
|
|
120,900 |
|
| Private lenders |
|
August 31, 2020 |
|
|
5.00 |
% |
|
|
- |
|
|
|
70,900 |
|
| Equipment
loans |
|
April 20, 2020 – November 7, 2021 |
|
|
4.30 - 12.36 |
% |
|
|
455,032 |
|
|
|
602,239 |
|
| Total loans |
|
|
|
|
|
|
|
$ |
1,312,533 |
|
|
$ |
1,626,551 |
|
The
maturity date of the long-term debt is as follows:
| |
|
May 31,
2019 |
|
|
August 31,
2018 |
|
| |
|
|
|
|
|
|
| Principal classified as repayable within one year |
|
$ |
1,060,124 |
|
|
$ |
1,027,569 |
|
| Principal classified as repayable later than one year |
|
|
252,409 |
|
|
|
598,982 |
|
| |
|
$ |
1,312,533 |
|
|
$ |
1,626,551 |
|
|
(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. The loan was repaid on September 4, 2018. On October 30, 2018 the Company
received a further advance of $350,000 from the same lender, bearing interest at 0% per
annum and repayable on demand. On January 31, 2019, the Company repaid $150,000 of the
principal outstanding. |
|
(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 bear interest at a rate
of 12% per annum, maturing 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 have been 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. 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. |
|
(iii) |
On
October 4, 2018, the Company received an advance of $100,000 from Bay Private Equity
in terms of a debenture line of credit of $9,500,000 made available to the Company. The
debenture matures 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. |
|
(iv) |
The
Company received advances from a private lender during the years ended August 31, 2018
and 2017 in the form of unsecured promissory notes. The promissory note matures on July
28, 2020, and bears interest at 10% per annum. The Company repaid the remaining private
lender and advanced the lender a further $1,195,123 (see note 6). |
|
(v) |
The
Company received advances from a private lender during the year ended August 31, 2018
and 2017 in the form of unsecured promissory notes. This promissory note matures on August
31, 2020 and bear interest at 5% per annum. On May 31, 2019, in terms of a debt settlement
agreement entered into, the Company issued 363,073 shares of common stock at an issue
price of $0.30 per share to settle the outstanding liability of $70,900 including interest
thereon of $27,130. |
The
Company entered into two equipment loan agreements 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 timing on the initial
repayment of $132,200 and subsequent 42 monthly instalments of $15,571. The promissory note was secured by the equipment financed.
|