$400k of shareholder money siphoned from the company. Read the disclosure lol. They made these "investments" before the legislation was even enacted....... Who approved these transactions? Entire management team should be terminated.
The Company acquired 20% of the issued and outstanding shares of Galaxy Power Inc. for consideration of $250,000. Galaxy Power Inc. is a company controlled by two directors and officers of the Company that was set up exclusively for the purposes of advancing a pollutionfree North America, focusing specifically on new Canadian Clean Technology developments and other forms of Clean Technology and related green fuels. Via its subsidiary, DISH, the Company invested $250,000 to acquire 20% of Galaxy Power's equity. The business purpose of this investment was to enable the Company to benefit and participate in the possible growth and eventual commercialization of new originations of Canadian proprietary Clean Technology with no future commitments by dynaCERT nor DISH and to benefit from fees generated by Galaxy Power's general partner in connection with future capital raised via flowthrough shares in Clean Technology companies. The Company also advanced a subordinate unsecured loan in the form prescribed in Appendix B of National Instrument 31-103 in the principal amount of $150,000, bearing interest at 10% per year (prorated and calculated monthly) and maturing on December 31, 2023, to Galaxy Placements Inc., a company controlled by a director and officer of the Company that applied to become an Exempt Market Dealer. The business purpose of this loan was to provide Galaxy Placements with the minimum capital required in connection with its application for an Exempt Market Dealer registration, and to cover expenses of the company. The Company recognized a loss on both the investment and the loan after considering the lack of security for the loan, that there was no provision for a payment plan between the debt holder and the Company, and that no foreseeable future economic benefit is expected on the investment. In making such assessments, the Company noted that the federal government had not (as of the date of such determinations) yet approved the legislation upon which Galaxy Power's business plan was dependent (and accordingly, no contracts for investment had been entered into at such time). As Galaxy Placements was established to act as an agent or finder in connection with certain private placements of flow-through shares to partnerships formed by Galaxy Power (but did not yet have its Exempt Market Dealer license as of December 31, 2021), a similar assessment was made regarding recoverability and foreseeable economic benefit as at December 31, 2021.