Director charged SX 24% interest on $25k loan in 2017!!!Frank gets a $75K interset free unsecurred loan, YET in 2017 a director charges 24% per anum to SX for lending the company $25,000 last year.... HELLO?!!!!!
What we have here is
severe board negligence i.e. CORRUPTION , Frank should be paying 24% per anum to SX for this $75K loan!!!
Read'em and weep it's time to call in the regulators boys.... In my opinion Frank's days are numbered.
Here's what we find on page 8 of the 2017 MD&A RRELATED PARTY TRANSACTIONS
a) Related party transactions
During the period, the Company incurred the following
transactions with related parties not disclosed
elsewhere in the financial statements:
Sep. 30, 2017
- $ -
Sep. 30, 2016
- $ -
Management fees paid or accrued to di
rectors or companies controlled by
directors
1, 2, 4,6,8,9
97,500 -
Office facilities and miscellaneous charges
accrued to companies controlled by a
director or an officer
3,5,7
117,500 22,500
Bonuses paid or accrued to directors or officers
1,2,3,4,5,6,7,8,9
144,500 -
1
Frank Dumas, President, Director and CEO
6
Wei-Tek Tsai, Director
2
Mark Billings, Chairman, Director
7
Joel Scodnick, Qualified Person
3
Neha Tally, Corporate Secretary
8
Herb Duerr, Director
4
Enrico Di Cesare, Director
9
Gary Johnson, Director
5
Richard Barnett, CFO
These amounts will be settled by either cash payments or issuing securities.
b) Due to Related Parties
At September 30, 2017, included in accounts pa
yable and accrued liabilities is $256,254 (December
31, 2016 - $35,301) owing to related parties.
These amounts are non-interest bearing, unsec
ured and have no fixed terms of repayment.
On April 25, 2015, the Company issued a promisso
ry note in the amount of $25,000 maturing on April
25, 2016 in favour of a Director of the Company. Inte
rest on the promissory note is calculated at 24%
per annum, totaling $2,160 (2015 - $4,102) for the year. A $5,000 signing fee was payable to the
Director of the Company. The note is secured by a general security interest in all the tangible and
intangible assets of the Company. During the year
ended December 31, 2016, the principal amount of
$25,000 was repaid. As of September 30, 2017, the
remaining balance of $10,565 which pertains to
interest and signing fees was paid.
https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00018603&issuerType=03&projectNo=02704549&docId=4223316