Here's the deal made with Power Up. Quick calculation of 58% of lowest trading price would be around .0075 converstion price resulting in almost 8 million shares issued to Power Up.
Power Up Lending Group Ltd
On February 21, 2017, the Company issued a convertible promissory note in the amount of principal amount of $103,500 to Power Up Lending Group Ltd (“Power Up Convertible Note”). This convertible note is due and payable on November 30, 2017 plus interest on the unpaid principal balance at a rate of 12% per annum.
The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note (February 21,2017) and ending on the later of: (i) the Maturity Date (November 30, 2017) and (ii) the date of payment of the Default Amount (as defined in the Note), each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of the Note into fully paid and nonassessable shares of Common Stock. The conversion price hereunder (the “Conversion Price”) shall equal 58% multiplied by the average of the lowest 2 Trading Prices for the Common Stock during the 15 Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.
The Company may prepay the amounts outstanding to the holder at any time up to the 180th day (the “Prepayment Date”) following the issue date of this note by making a payment to the note holder of an amount in cash equal to 120% (for the first 150 days) and to 125% (between 151 -180 days). After 180 days from the Effective Date this Note may not be prepaid.
In connection with the Power Up Convertible Note the Company paid $3,500 in debt issuance costs which are being amortized to interest expense using the effective interest method. During the year ended April 30, 2017 the Company recognized interest expense in the amount of amount of $845 relating to the amortization of the debt issuance costs. The unamortized balance of debt issuance costs totaled $2,655 at April 30, 2017.
The Company recorded interest expense in connection with the Power Up Convertible Note in the amount of $2,380 and $0 for the years ended April 30, 2017 and 2016, respectively. Accrued interest due under the Power Up Convertible Note totaled $2,380 and $0 as of April 30, 2017 and April 30, 2016, respectively
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