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Accounts Receivable - Related Party
9 Months Ended
Jan. 31, 2016
Accounting Policies [Abstract]  
Accounts Receivable - Related Party

As discussed in Note 1, on October 15, 2015, the Company entered into the Contribution Agreement with Megawest and Fortis pursuant to which the Company and Fortis each agreed to assign certain assets to Megawest in exchange for the Megawest Shares.

 

Upon execution of the Contribution Agreement, (i) the Company transferred its 50% membership interest in Bandolier with a net book value of $7,119,798, and cancelled all of its ownership interest in the then issued and outstanding Megawest Shares, and (ii) Fortis transferred certain indirect interests held in 30 condominium units and the rights to any profits and proceeds therefrom, with a book value of $15,544,382, to Megawest. Immediately thereafter, Megawest issued to the Company 58,510 Megawest Shares, representing a 58.51% equity interest in Megawest, as consideration for the assignment of the Bandolier Interest, and issued to Fortis 41,490 Megawest Shares, representing a 41.49% equity interest in Megawest, as consideration for the condominiums assigned to Megawest by Fortis.

 

As of January 31, 2016, the Company recorded an accounts receivable – related party in the amount of $5,616,589, which was due from Fortis for the sale of condominiums, see Note 7.  The Company also recorded an accounts receivable – related party in the amount of $363,750 for deposits received on the sale of additional units that was being held in escrow and an offsetting liability of $363,750 for the deposits received.  These funds were received by Megawest subsequent to January 31, 2016. These funds are held currently by Megawest and controlled by the board of directors of Megawest, consisting of two members appointed by Fortis, and one by the Company.