1pm Industries Inc (OPMZ)

[surfkast]

As of May 31, 2017, and February 28, 2017, the Company owed a note payable – related party of $297,697 net of a $40,940 debt discount and $161,946 net of a $24,980 debt discount, respectively. During the three months ended May 31, 2017 and 2016, the Company recognized amortization of debt discount of $5,614 and $3,422, respectively.



During the year ended February 28, 2017, the Company issued a total of $227,500 notes with the following terms:

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Terms ranging from 9 months to 2 years.

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Annual interest rates of 10% - 12%.

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Convertible at the option of the holders either at issuance or 180 days from issuance. The note dated June 6, 2016 is convertible at September 6, 2016.

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Conversion prices are typically based on the discounted (35% to 60% discount) lowest trading prices of the Company’s shares during various periods prior to conversion. Certain notes allow for the conversion price to be the lower of the closing sale price or the discounted trading price.



During the three months ended May 31, 2017, the Company issued a total of $390,000 note with the following terms:

·
Terms ranging from 9 months to 2 years.

·
Annual interest rates of 10 - 12%.

·
Convertible at the option of the holders at issuance.

·
Conversion prices are typically based on the discounted (40% to 60% discount) lowest trading prices of the Company’s shares during various periods prior to conversion.



The selling and general and administrative expenses is primarily comprised of consulting fee of $875,885 and stock based compensation of $110,526.



https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12185633




(3) The Company has been asked via email about the remaining convertible notes. Due to derivative accounting rules, it is difficult to understanding the underlying derivatives The Company has the following convertible notes:

a. Typenex - $32,027.50 remaining (funded December 2016)

b. Typenex - $250,000 – (funded April 2017 not convertible till October 2017)

c. Vista Capital - $100,000 – (funded April 2017 not convertible till October 2017)

d. EMA Financial - $42,632 remaining from balance of $57,500– (funded June 2016)


https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12177920