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Subsequent Events
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

11.    Subsequent Events

 

a)       On March 28, 2016, the Company entered into a Real Property Purchase Agreement whereby the Company purchased two properties and four parcels of land for a total consideration of $1,650,000 consisting of 722,883 shares of restricted common stock of the Company valued at $1,084,719 and the assumption of debt of $565,281. The debt of $565,281 includes a promissory note in the amount of $314,831 and a mortgage note in the amount of $250,450. The acquisition closed on April 11, 2016.

 

b)       On April 1, 2016, ARP entered into a promissory note for $300,000 bearing interest at 16% per annum. The note is due on October 1, 2016 and is collateralized by the two real estate properties titled to ARP.

 

c)       On April 4, 2016, the Board of Directors approved a Stock Repurchase Program. The Stock Repurchase Program shall be effective on April 5, 2016.  The Stock Repurchase Program expires on the earlier of November, 1, 2016 or a determination by the Board of Directors that the original conclusions and determinations by the Board of Directors in support of the Stock Repurchase Program are no longer valid or no longer consistent with the Company’s short-term and long-term objectives. 

 

d)       On April 18, 2016, AHIT-Valfre closed its internal restructuring and the partners in AHIT-Valfre restructured their respective interests in the partnership resulting in AHIT-Valfre GP, LLC (“AHIT-Valfre GP”) and AHIT-Valfre Limiteds, LLC (“AHIT-Valfre Limiteds”) serving as General Partner and Limited Partner, respectively, of AHIT-Valfre.   On April 18, 2016, AHIT-Valfre closed the financing with FirstKey Mortgage, LLC (“FirstKey Mortgage”) and entered into a balloon note for $1,203,000, bearing interest at 6.07% per annum and due on May 1, 2021.  The note is collateralized by the real estate properties titled to AHIT-Valfre.  In addition, the Company has guaranteed the obligations of AHIT Valfre, and AHIT Valfre GP and AHIT Valfre Limiteds have provided guaranties and have pledged their interests in their respective entities to FirstKey Mortgage, LLC.  The proceeds from the balloon note were used to pay off mortgages previously assumed by AHIT-Valfre on August 3, 2015.