Thursday, May 17, 2018 4:26:03 PM
Correct. They borrowed $150,000 for 6 months and had to repay $183,333. That is $33,333, or 44.4% interest on an annual basis.
But wait....that is not all. They also gave JMJ 3,951,940 shares of common stock as a bonus! You need to add in that cost to the loan, too. According to the 10-Q, they valued the shares at $51,920. So they really borrowed $150,000 for six months at a total cost of $85,253. On an annual basis, that corresponds to a 114% interest rate. And it assumes Mexus didn't have to issue additional common shares to JMJ to extend the maturity date by a week.
No company can stay in business long borrowing money at a annual cost of 114%.
Recent MXSG News
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 08/02/2024 08:59:36 PM
HealthLynked Corp. Announces Second Quarter and First Half 2024 Results: Continued Cost Reductions Set the Stage for Strategic Shift to App-Based Technology Services • HLYK • Aug 16, 2024 8:00 AM
PickleJar Announces Official Name Change and New Ticker Symbol • NREG • Aug 15, 2024 2:23 PM
VAYK's Q2 Profit Added to Accumulated Net Profit of Over $2.2 Million In 18 Months • VAYK • Aug 15, 2024 9:07 AM
Swifty Global Reports Strong Q2 Performance and Prepares for Major Exchange Uplisting • DRCR • Aug 15, 2024 9:04 AM
Mayback's Global Entertainment Signs Global Distribution Agreement with Children's Media Studio • AHRO • Aug 15, 2024 8:45 AM
POET Technologies Reports Second Quarter 2024 Financial Results • POET • Aug 15, 2024 8:04 AM