Mexus Gold US (MXSG)

[1manband]

What do you think of the claim that PT will do this to alleviate the toxic note issue - is it legal?

If that were really an option, Why didn't PT do that BEFORE he entered into the toxic death spiral note with an effective annualized cost of 72%?

But the 10-Q's paint a very different story. At the same time Mexus was out of money and borrowing on loan shark terms with the toxic death spiral lender, they were using a lot of the toxic death spiral money to PAY PT AND HIS SON!

From the September 10-Q:

Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand. These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company. As of September 30, 2017 and March 31, 2017, notes payable due to Taurus Gold Inc. totaled $46,620 and $67,224, respectively.

Notes due to North Pacific Gold were accumulated through a series of cash advances to the Company. North Pacific Gold is controlled by Paul Thompson, Jr., an immediate family member of Paul D. Thompson, the sole director and officer of the Company. This loan was due in 90 days and is in default, unsecured and bears interest of 6% per annum and is repayable in cash or Company common stock at market value at the option of the Company. As of September 30, 2017 and March 31, 2017, notes payable due to North Pacific Gold totaled $19,887 and $19,531, respectively.


From the December 10-Q:

NOTES PAYABLE – RELATED PARTY

Notes due to Taurus Gold, Inc. are unsecured, non-interest bearing and due on demand. These notes were accumulated through a series of cash advances to the Company. Taurus Gold, Inc. is controlled by Paul D. Thompson, the sole director and officer of the Company. As of December 31, 2017 and March 31, 2017, notes payable due to Taurus Gold Inc. totaled $4,514 and $67,224, respectively.

Notes due to North Pacific Gold were accumulated through a series of cash advances to the Company which are unsecured, non-interest bearing and due on demand. North Pacific Gold is controlled by Paul Thompson, Jr., an immediate family member of Paul D. Thompson, the sole director and officer of the Company. As of December 31, 2017 and March 31, 2017, notes payable due to North Pacific Gold totaled $9,227 and $19,531, respectively.


In other words, between October 1 and December 31, Mexus borrowed $150K from the toxic lender at an effective 72% annual rate and used $52,766 of it to pay off PT and his son! One third of the money that PT could potentially give Mexus to pay off the loan (if you believe that) came from that same loan!