ProGreen US Inc. (fka PGUS)

[tigerpac]

I'm in the wrong business...was trying to figure out how Progreen had to pay back $122K for $103K borrowed six months ago....

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.

$62K repaid on 8/21 represented $50K of the $103K. So not only did Jan have to let shares convert he also effectively paid a 25% interest rate for six months on principal borrowed. Loan shark rates.