Accounts Receivable – Related Party

12 Months Ended

Apr. 30, 2016

Accounts Receivable Related Party

Accounts Receivable – Related Party

As discussed in Note 1, on October 15, 2015, the Company entered into the Contribution Agreement with 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, Fortis transferred its interest in 30 condominium units and the right to any profits and proceeds therefrom. For the year ended April 30, 2016, Fortis sold 25 condominium units and MegaWest recorded a net gain on interest in real estate rights of $10,474,713. For the year ended April 30, 2016, MegaWest received cash of $17,848,000; and as of April 30, 2016, the Company had an accounts receivable – related party in the amount of $4,829,693 related to interest in real estate rights of 25 condominium units sold.