PureBase Corp. (PUBC)

[stockmasterflash]

they are starting out the gate

with a lot of baggage. Same auditor as MMRF too so you can bet there are a lot of things they conveniently don't see.

http://www.sec.gov/Archives/edgar/data/1575858/000112785515000163/purebase10q022815.htm

Note 4 Notes Payable

On April 8, 2013, USAM issued a $1,000,000 promissory note to an unaffiliated third party. This note was assumed by Purebase, Inc. on November 24, 2014 in connection with the acquisition of USAM by Purebase, Inc. The note bears simple interest at an annual rate of 5% and the principal and
accrued interest are payable on May 1, 2016. Upon the occurrence of an event of default, which includes voluntary or involuntary bankruptcy, all unpaid principal, accrued interest and other amounts owing are immediately due, payable and collectible by the lender pursuant to applicable law. The balance of the note was $1,000,000 at February 28, 2015 and November 30, 2014, respectively.

On August 31, 2014, Purebase issued a promissory note in the amount of $200,000 for general working capital needs. The note bears interest of 5% per annum with the principal and accrued interest due on October 31, 2014. This note is still outstanding and the Company is negotiating new terms.


Note 5 Commitments and Contingencies

Purebase, Inc. and US Agricultural Minerals, LLC along with certain principals of those entities were named as defendants in a Complaint filed in the Second Judicial District Court in Washoe County, Nevada (Case # CV14 01348) on June 23, 2014. The Complaint was filed by Madelaine and Edwin Durand alleging various causes of action including breach of contract and misrepresentations by various defendants and certain principals of Purebase, Inc. and USAM. The substance of the Complaint involves the alleged breach and other wrongful acts pertaining to a Mineral Lease Contract and a Non-Disclosure, Confidentiality and Non-Compete Agreement entered into between the Plaintiffs and the Defendants. On September 11, 2014 a Motion to Dismiss was filed on behalf of all Defendants and is pending awaiting determination by the Court pending a separate Motion by the Plaintiffs to disqualify Defendants’ Nevada attorneys which Motion was denied by Order dated March 30, 2015. The Hearing on Defendants’ Motion to Dismiss will resume on April 17, 2015.