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Note 6: Related Party Transactions
9 Months Ended
Sep. 30, 2016
Notes  
Note 6: Related Party Transactions

 

6. Related Party Transactions

 

Other than amounts payable to related parties as disclosed below and in Note 3, the Company also incurred consulting fees of $7,438 (2015 - $6,394) paid to a company controlled by our chief executive officer during the nine months ended September 30, 2016.

 

Our former chief executive officer and former director entered into a consulting arrangement on a month to month basis that provided for a monthly fee of CAD$5,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on May 24, 2013. As of September 30, 2016, our former chief executive officer was owed $64,808 (CAD$83,710) for services rendered as an officer, compared to $63,821 (CAD$83,710) as at December 31, 2015. The amounts owing for past services have been included in the total payable of $169,339 as of September 30, 2016 and $159,979 as of December 31, 2015 detailed below.

 

Our former chief financial officer and former director had entered into a consulting agreement on a month to month basis that provides for a monthly fee of $2,000. These amounts have been accrued and are currently unpaid. This consulting arrangement ended on June 14, 2013. As of September 30, 2016 and December 31, 2015 our former chief financial officer was owed $58,870 for services rendered as an officer.

 

Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with a corporation with a former director in common and thereby assigned $154,583 (CAD$202,759) of unpaid amounts payable.

 

Our former chief executive officer and former director entered into a debt assignment agreement effective January 1, 2012, with an unrelated third party and thereby assigned $53,357 of unpaid amounts payable and $100,000 of unpaid loans.

 

Our former chief executive officer and former director is owed $169,339 for unsecured non-interest bearing amounts due on demand from the Company as of September 30, 2016, compared to $159,979 as of December 31, 2015.

 

Our former chief executive officer and former director is owed $30,042 for unsecured amounts bearing 6% interest due on demand loaned to the Company as of September 30, 2016, compared to $28,941 as of December 31, 2015.

 

Our other former officers are owed a total of $82,992 for their prior services rendered as officers as at September 30, 2016, compared to $79,381 as of December 31, 2015.

 

A director of the Company is owed $60,000 as of September 30, 2016 and December 31, 2015, for services rendered as a director during 2007. Two former directors of the Company are owed $76,100 as of September 30, 2016 and December 31, 2015 for services rendered as directors during 2007.

 

 

7. Memorandum of Understanding

 

On March 17, 2016, the Company entered into a non-binding Memorandum of Understanding (“MOU”) with CaiE Food Partnership Ltd. (“CaiE”) for the purpose of acquiring CaiE as a wholly owned subsidiary. The MOU anticipates that the Company will issue, subject to shareholder approval, a fully diluted 67% interest in its common stock in exchange for CaiE. The MOU also provides that the Company enter into debt settlement agreements with certain of its existing creditors (see Note 8), whereby the Company will issue shares of its common stock in order to settle certain historical debt. It is anticipated that the shares will be issued at a deemed value of $0.50 per share pursuant to the debt settlement agreements. Concurrently, the Company will increase the number of its authorized common shares, elect a new Board of Directors and change its name to reflect the new business.

 

The MOU further provides that CaiE lend the Company $50,000 on a convertible basis prior to the consummation of the transaction. The terms and conditions of the conversion of this loan have not been agreed, though the intention of each party is that the conversion be effected at the same price as that of Debt Settlement Agreements discussed above. CaiE has loaned the Company $50,000 as of the filing date of this report, which has been accounted for as a liability as at September 30, 2016, but will be reassessed for a beneficial conversion feature once the terms of the loan have been finalized.