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LINE OF CREDIT
6 Months Ended
Jun. 30, 2022
Line Of Credit  
LINE OF CREDIT

NOTE 5 – LINE OF CREDIT

 

On April 14, 2022, the Company entered into a binding Grid Promissory Note and Credit Facility Agreement (the “Line of Credit”) with The Cellular Connection Ltd. (the “Lender”) Pursuant to the Line of Credit, the Company can borrow from the Lender up to CAD$750,000 in principal in increments of at least CAD$50,000 upon five business days’ notice. The funds due for repayment on May 1, 2024, and the principal bears interest at 8% per annum, payable monthly. Any indebtedness under the Line of Credit are secured against accounts receivable and inventory of the Company, and is convertible into equity of the Company at the Company’s option any time after twelve months from the first advance, subject to a restriction on the Lender holding more than 4.99% of the Company’s Common Shares. As at the date of this Form 10-Q, no funds have been borrowed by the Company pursuant to the Line of Credit.