RE:The basis of this rumor?This is not a rumor. From Page 34 of the Nov 2021 MD&A::
"On November 16, 2021, the Company entered into loan agreements with its Chief Executive Officer (CEO), Mitchell Scott, and its Chief Research & Development Officer (CRDO), James Davison, to provide individual loans in the amounts of $750,000 and $500,000 to the CEO and CRDO, respectively (collectively, the “Loans”). With the express consent of the CEO and CRDO, the Loans were amended on November 23, 2021 such that all accrued principal and interest under the CEO Loan is now immediately due and payable and the CRDO Loan is due and payable within 60 days. It is anticipated that the CEO will pay his Loan in full by December 1, 2021 and the CRDO will pay his Loan in full on or before maturity. Until repayment, the Loans continue to bear interest at a rate of 9% per annum, payable monthly, and, if for any reason a Loan is not paid in full on or before January 18, 2022, the Loan will be secured by certain financial assets commencing on such date. Moreover, the CRDO Loan provides for scheduled repayments prior to maturity."
They tried to rob the pot, there was an immediate shitstorm, and they quickly changed course.