RE:RE:RE:RE:RE:RE:FinancialsI'm a little confused by that because the chart in item #16 shows $896,679 of total Loans and Advances being due with 1-3 years. See below.
Payments due by period Liabilities and obligations Total Less than 1 year 1-3 years 4-5 years Accounts payable and accrued liabilities 1,191,247 1,191,247 - - Lease liability 128,995 48,884 80,111 Loans and advances 896,679 - 896,679 Debenture 446,400 - 446,400 2,663,321 1,240,131 1,423,190 - And then here is section in financials related specifically to Happy Caps acquisition:
(iii) 4316747 NOVA SCOTIA LIMITED (“HAPPY CAPS”) On June 10, 2021, the Company announced that is completed the acquisition of an 80% stake in 4316747 Nova Scotia Limited ("Happy Caps"). Happy Caps Mushroom Farm in Nova Scotia, Canada, is a unique gourmet mushroom farm, cleverly positioned in the mushroom plug spawn business, selling fresh mushrooms for the wholesale market and specializing in 'grow your own mushroom kits' with sales in Canada and the United States. The Acquisition was completed pursuant to the terms of the definitive agreement (the "Acquisition Agreement") dated June 10, 2021, pursuant to which the Company acquired 80% of the issued and outstanding shares of Happy Caps for $450,000. The consideration was comprised of $50,000 cash and 1,290,323 common shares of the Company (the "Red Light Shares"), with each Red Light Share priced at $0.31 being the 10-day volume weighted average price of the Red Light Shares on the Canadian Securities Exchange immediately prior to the closing of the Acquisition. The Acquisition Agreement provides for up to $550,000 of earn out payments to be made to the Vendors subject to reaching certain sales milestones, with all milestones subject to minimum gross margin requirements. In addition to the foregoing, as per the terms of the Acquisition Agreement, the Vendors have granted the Company an option to acquire all the remaining shares in Happy Caps not held by the Company, thus allowing the Company to become the sole shareholder of Happy Caps (the "Call Option"), at a 100% enterprise value equal to $2,500,000. The Call Option will be exercisable at any time following a period of two (2) years from closing. The consideration under the Call Option, if exercised, may be satisfied in Red Light Shares, on the basis of a deemed price per Red Light Share equal to the volume weighted average price per Red Light Share on the CSE for the 10 consecutive trading days preceding closing of the Call Option. The acquisition was accounted for accordance with IFRS 3 Business Combinations. Accordingly, the acquisition is accounted at the fair value of the equity instruments issued. The excess of consideration over the net assets acquired has been recorded as unallocated intangible assets. The Company is in the process of determining the appropriate values of intangible assets received from the acquisition. The fair value consideration is as follows: RED LIGHT HOLLAND CORP. Notes to the Condensed Interim Consolidated Financial Statements (unaudited) (Expressed in Canadian Dollars) For the three and six months ended September 30, 2021 and September 30, 2020 12 5. BUSINESS ACQUISITIONS (continued) Assets Acquired $ Cash 11,582 Accounts receivable 10,520 Inventory 6,383 Accounts payable (22,070) Non-controlling interest (1,282) Unallocated intangible assets 994,868 Net assets as at June 10, 2021 1,000,000 Consideration $ Cash 50,000 Contingent cash consideration 550,000 Common shares 400,000 1,000,000 BrokerG wrote: Hello Sam,
Please see below,,Item 20 of financial statements: This is what I was referring too.
LOANS AND ADVANCES $772,674 of these loans are unsecured, non-interest bearing with no specific terms of repayment. These are advances from the minority interest holders of HappyCaps, and had been advanced prior to the acquisition. $124,005 is an equipment finance loan bearing an annual interest rate of 2,988%, monthly interest and principal payments of $1,878, and maturing September 2027