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Convertible Debentures
12 Months Ended
Aug. 31, 2013
Notes  
Convertible Debentures

Note 9  Convertible Debentures

 

On July 5, 2013, the Board of Directors authorized the issuance of 20% Convertible Redeemable Debentures ("Convertible Debentures") in an aggregate principal amount not exceeding US $250,000.  The debentures mature between June 30, 2014 and July 30, 2014 and accrue interest at 20% per annum from the day of initial issuance.  As defined in the debenture agreement, the Convertible Debentures, at the option of the holder at any time commencing on December 31, 2013 until maturity, are convertible into shares of common stock of the Company, at a price of $0.25 per share on a post consolidated basis (as to be determined).

 

On July 9, 2013, the Company issued a Convertible Debenture to a non-US resident accredited investor pursuant to Regulation S in the amount of $25,000.

 

On August 15, 2013, the Company issued a Convertible Debenture to a non-US resident accredited investor pursuant to Regulation S in the amount of $5,000.

 

Interest expense amounted to $784 in the year ended August 31, 2013.