Details of long term debtagain from financials
11. LOAN PAYABLE (CONTINUED) The Subordinated Loan and the Senior Loan each have a term of seven years, maturing on July 15, 2024. Semiannual principal repayments start on January 15, 2020. Prior to that only interest payments are required. The Senior Loan carries an interest rate of $US six-month LIBOR plus 6.5%. The Subordinated Loan’s rate is $US sixmonth LIBOR plus 9.5%. The Subordinated Loan and the Senior Loan are secured by all the assets of the Company. In connection with the debt funding arrangement, the Company incurred transaction costs of $1,072,441. These transaction costs were recorded as a reduction of the carrying value of the liability. In addition, the Company granted Cordiant 450,000 non-transferrable common share purchase warrants exercisable at a price of $0.55 per share for a period of 36 months from date of issuance. For accounting purposes, the Company calculated the fair value of the 450,000 warrants, using the Black-Scholes option pricing model, which totaled $104,501 (Note 13(c)). This value was recorded as a reduction of the carrying value of the liability. On August 1, 2017, the Company had satisfied all the conditions of its loan financings and had drawn down the entire amount of the Subordinated Loan of US$9.5 million ($11,871,894). During YTD 2018, accretion expense of $264,022 was capitalized as development assets with a corresponding increase in the carrying value of the liability. As at September 30, 2017, the carrying value of loan payable was $10,932,482. Subsequent to September 30, 2017, US$8.4 million of the Senior Loan was drawn down of which US$4.5 million remains in the Blocked Account