Replies to post #32746 on Mexus Gold US (MXSG)

[1manband]

Mexus has been paying massive penalties on the Notes, and they haven't been repaying anything - they just take out 2 new notes to roll forward 1.

Let's look at an example from the most recent 10-Q:

On November 7, 2018, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $78,000 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing August 30, 2019 for $75,500 in cash..... On May 10, 2019, the Company paid $111,531 in cash to Power Up Lending Group Ltd. to fully settle the Note.

They borrowed $78,000 (really $75.5K after the $2500 in "costs") at 12% interest. That means after the 7 months of borrowing, they should have had to pay $89,881 to settle the note. But instead, they paid $111,531! That is an extra $21,650, which is the very definition of penalty, and means they paid an effective interest rate of 82%!

And how did they extinguish this note on May 10th? By taking out another note with Power Up the day before (May 9th)!

"On May 9, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $83,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing March 15, 2020 for $80,000 in cash."

And where did the extra cash come from? From 2 more notes, of course!

"On April 5, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $88,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing February 28, 2020 for $85,000 in cash."

"On January 25, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $73,000 less transaction costs of $3,000 bearing a 12% annual interest rate and maturing November 15, 2019 for $70,000 in cash."

For every 1 toxic death spiral note they originally take out, Mexus is taking out 3 more!

That means they are digging themselves a massive hole.