So much for being debt-free........
As part of the transaction, AEPP issued $4,190,464 aggregate principal amount of 10%, senior secured notes due November 2018. The $2,352,942 aggregate principal amount of such notes were issued at discount for $2 million in cash proceeds. Furthermore, $1,837,522 of such notes were issued in exchange for existing Oncolix debt obligations in the amount of $1,561,894. The notes are initially convertible at a fixed price into 55,932,836 shares of AEPP common stock subject to future adjustment. AEPP is required to make monthly amortization payments of 1/7 [th] of the principal amount of the notes, commencing on the 9-month anniversary of issuance. The notes are secured by all the assets of AEPP and Oncolix and guaranteed by Oncolix. Additionally, five-year warrants to purchase 55,932,836 shares of AEPP common stock at an exercise price of $0.09 per share were issued in connection with the debt financing. In connection with the issuance of these notes and warrants, the Company granted registration rights to register the resale of the shares underlying both the notes and warrants.
