icc (transnationnal cannbis) do we lost 29 millions on this?CONVERTIBLE DEBENTURES RECEIVABLE On December 30, 2019, the Company purchased 20,000 units (“Units”) of senior unsecured convertible units of Transnational from three arm’s length parties for $23,682,600 (US$18,000,000). The convertible debenture bears interest at 10% and expires on March 12, 2021. Each Unit consists of US$1,000 principal amount of convertible debenture and 1,428 common share purchase warrants of Transnational. Each convertible debenture warrant is exercisable into one common share of Transnational at an exercise price of US $0.50 for a period of two years from the closing date. The convertible debentures are convertible into the number of common shares equal to the principal amount divided by US$0.38 per debenture share. Upon conversion, the holder shall receive a cash payment equal to the accrued and unpaid interest due on the convertible debenture. AGRAFLORA ORGANICS INTERNATIONAL INC. Notes to the Consolidated Financial Statements (Expressed in Canadian Dollars) Years ended December 31, 2020 and 2019 33 14. CONVERTIBLE DEBENTURES RECEIVABLE (CONTINED)_ The initial fair value of the convertible debenture was determined to be $24,636,507 and the fair value of the attached warrants, which are included in investments, was determined to be $20,423. During the year ended December 31, 2020, the fair value of the instruments was estimated to be $29,210,673 using the binomial lattice method, using a risk-free rate of 0.1076%, volatility of 136%, discount for lack of marketability of 20% and credit rating of CCC. The Company recorded a gain on fair value movements on investment of $4,553,743 prior to December 31, 2020. As at December 31, 2020, management determined the recoverable value of the convertible debenture was $Nil (December 31, 2019 - $24,636,507) and the value of the warrants was also $Nil (December 31, 2019 - $20,423). As a result, during the year ended December 31, 2020, the Company recorded a loss from write-off of the convertible debenture of $29,210,673. 15. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, 2020 $ December 31, 2019 $ Accounts payable (note 27) 8,072,382 1,932,845 Amount due to related parties (note 20) 165,778 123,341 Accrued liabilities 251,278 351,191 8,489,438 2,407,377 During the year ended December 31, 2020, the Company settled certain debts with creditors and recorded a loss on debt settlement of $639,333 (2019: $Nil) and wrote off accounts payable of $47,671 (2019: $Nil) (Note 19)