Wow, 9% of Aitx revenues going to investor..
If you think Aitx is making money look again..
n December 7, 2018, the Company received the balance of $95,000 of proceeds from an investor for a $200,000 back-end note dated July 6, 2017 with an original principal amount of $105,000, including an original issue discount of $10,000, and maturing June 9, 2019. The note’s original maturity was July 6, 2018, but this maturity was extended on December 19, 2018. The other installments, totaling $95,000 (including an original issue discount of $10,000), on this note were received July and August 2018. The back-end note is convertible into common shares of the Company at a conversion price equal to 60% of the lowest trading price of the Company’s common stock for the last 20 trading days prior to conversion, and has an 8% per annum interest rate.
On February 1, 2019 the Company entered into an agreement with an investor whereby the investor would pay up to $900,000 (including a $92,000 payment made in January 2019) in exchange for a perpetual 9% royalty on the Company’s reported quarterly revenue. These royalty payments are to be made 90 days after the fiscal quarter. If the royalty payments would deplete RAD’s available cash by more than 20%, the payment may be deferred. The investor has agreed to pay the remaining $808,000 over an eleven-month period in minimum $60,000 monthly installments, commencing February 1, 2019. If the total investment turns out to be less than $900,000, this would not constitute a breach of the agreement, rather the royalty rate would be adjusted on a pro-rata basis.
Wow investors should take note here...
totally screwed. besides paying 9% to investor (SG) ahem, true investors are be wayleighed.....
Aitx way not to go...always read the financials...
