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Convertible Promissory Note
12 Months Ended
Apr. 30, 2016
Debt Disclosure [Abstract]  
Convertible Promissory Note

NOTE 8. CONVERTIBLE PROMISSORY NOTE

 

On June 19, 2015, the Company issued a convertible promissory note in the amount of $43,000 to Vis Vires Group Inc., which was fully settled during the year ended April 30, 2016. The loan became convertible 180 days after the date of the note. The loan and any accrued interest could be converted into shares of the Company’s common stock at a rate of 58% multiplied by the market price, which is the average of the lowest three (3) trading prices for the common stock during the ten (10) trading day period ending on the latest complete trading day prior to the conversion date. The Note also contained certain representations, warranties, covenants and events of default, and increases in the amount of the principal and interest rates under the Note in the event of such defaults.

 

On December 28, 2015, Vis Vires Group Inc. issued a notice of conversion and elected to convert $12,000 of the principal amount at an applicable conversion price of $0.0017 per share of common stock. Resultantly, the Company issued 7,058,824 shares of common stock.

 

On March 23, 2016 the outstanding principal amount and unpaid interest at 8% per annum in the total amount of $33,500 became immediately due and payable. In the event of non-payment the company would become due to pay 150% of the then outstanding principal plus interest and the interest rate increases to 22% per annum until repaid or conversion took place. The holder’s ability to convert the note, however, was limited in that it would not be permitted to convert any portion of the note if the number of shares of our common stock beneficially owned by the holder and its affiliates, together with the number of shares of our common stock issuable upon any full or partial conversion, would exceed 9.99% of our outstanding shares of common stock. The holder had the right to waive this term upon 61 days’ notice to us. The principal amount and interest in total of $33,500 was paid on March 23, 2016.

 

The Company’s management determined the beneficial conversion feature of the note of $29,449 in accordance with the requirements of ASC Topic 470. The beneficial conversion feature determined at the time of note issuance has been credited to additional paid-in-capital and was accreted over the term of the note.