RE: RE: The 2 transactions of 7 mill each No it more than covers the loan. From the Dec. 2011 Financials:
5. Loan receivable from related party:
On December 7, 2011, the Company entered into a loan agreement with a company controlled by two
directors of the Company. The principal amount of the loan, being $1,140,000, was advanced on
December 14, 2011 with the condition that the borrower may only use the loan proceeds to acquire
9,500,000 common shares pursuant to the exercise of share purchase warrants expiring on December 17, 2011 with an exercise price of $0.12 per share (completed December 17, 2011). The loan bears interest at the rate of prime plus 5% per annum (accruing from the date which is three months from the date of advance), and is due on the earlier of June 1, 2012 and the sale of any shares acquired pursuant to the exercise of the warrants until the loan and accruing interest is repaid in full. The loan is secured by a general security agreement.
So, they took the loan to allow themselves to excercise warrants about to expire, and presumably paid that back by June 1. However, as others have speculated, they likely had an arrangement to transfer these shares to someone at an agreed-upon price. Oh well. Wait and see.
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