INVESTMENT IN MARKETABLE SECURITIES

12 Months Ended

Apr. 30, 2014

INVESTMENT IN MARKETABLE SECURITIES [Text Block]

4. INVESTMENT IN MARKETABLE SECURITIES

As of April 30, 2014 and April 30, 2013, investment in marketable securities consisted of $500,000 and zero, respectively. The market value was $0.25 per Gainey share on April 30, 2014, traded on the Vancouver exchange, under the stock symbol GNC.V.

On September 27, 2013, the Company entered into a settlement and security release agreement with Golden Anvil. Under the terms of the Release Agreement, the Company agreed to release Golden Anvil from loan agreements pursuant to which, Golden Anvil owed the Company $983,055 in secured indebtedness. In exchange for the release, Golden Anvil had 2,000,000 common shares of Gainey issued to the Company as part of an asset purchase agreement between Golden Anvil and Gainey.

The Asset Purchase was completed on September 30, 2013 and will serve as Gainey’s qualifying transaction under TSX Venture Exchange rules for capital pool companies. As such, the Gainey Shares will be released pursuant to the terms of a surplus escrow agreement as follows:

% of Shares to be Released	Date of Release
5%	October 2, 2013
5%	April 2, 2014
10%	October 2, 2014
10%	April 2, 2015
15%	October 2, 2015
15%	April 2, 2016
40%	October 2, 2016

In addition, the Gainey Shares are subject to a voluntary pooling agreement, which provides that none of the Gainey Shares may be traded before October 2, 2014.

Marketable securities are held for an indefinite period of time and thus are classified as available-for-sale securities. Realized investment gains and losses are included in the statement of operations, as are provisions for other than temporary declines in the market value of available-for-sale securities. Unrealized gains and unrealized losses deemed to be temporary are excluded from earnings (losses), net of applicable taxes, as a component of other comprehensive income. Factors considered in judging whether an impairment is other than temporary include the financial condition, business prospects and creditworthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of decline, and the Company’s ability and intent to hold the investment until the fair value recovers.

As of April 30, 2014, the Company has recorded an accumulated other comprehensive loss of $500,000 regarding its investment in marketable securities. Based on management’s evaluation of the circumstances, management believes that the decline in fair value below the cost of certain of the Company’s marketable securities is temporary.

The following is a summary of available-for-sale marketable securities as of April 30, 2014:

		Cost		Unrealized		Unrealized			Market or
				Gain		(Losses)			Fair Value
Equity securities	$	1,000,000	$	- -	$	(500,000	)	$	500,000
Total	$	1,000,000	$	- -	$	(500,000	)	$	500,000

The Company had no investments in marketable securities at April 30, 2013.