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13. Subsequent Events
12 Months Ended
Apr. 30, 2016
Notes  
13. Subsequent Events

13.  Subsequent Events

 

In accordance with ASC 855, Subsequent Events, the Company has evaluated subsequent events to determine events occurring after April 30, 2016 that would have a material impact on the Company’s results or require disclosure.

 

Name Change

 

Effective June 15, 2016, the Company changed its name to Defense Technologies International Corp.  The new corporate name more fully represents the Company’s expansion goals into the advanced technology sector.

 

DTC Acquisition

 

As discussed in Note 3, the closing of the acquisition of DTC was extended to and completed on July 15, 2016 to allow for completion of the audit of DTC's financial statements.  The Company will now use its reasonable best efforts to effectuate a spin-off of its present subsidiary, Long Canyon Gold Resources Corp., on terms to be determined.

 

Issuances of Common Stock

 

Subsequent to April 30, 2016, the Company issued the following shares of its common stock:

 

  • 350,000 shares to Merrill W. Moses, President, CEO and Director, for services valued at $119,000 pursuant to a Service Agreement.
  • 16,500 shares to a consultant in payment of accrued financing fees valued at $5,775.
  • A total of 325,000 shares to a lender for conversion of debt of $15,125.
  • 1,232,880 shares to a lender for conversion of debt of $61,644.
  • A total of 750,000 shares to a consultant in payment of fees valued at $160,275.
  • A total of 300,000 shares to a consultant in payment of fees valued at $32,000.
  • 250,000 shares to Charles C. Hooper, Director, for services valued at $25,000 pursuant to a Service Agreement.

 

Renewal of Mineral Leases

 

In May 2016, Long Canyon renewed leases for 30 BLM mineral lease claims, situated in the west section of the new Long Canyon Gold Trend area of east central Nevada and is required to pay the associated fees within 90 days of the renewal.  The Company anticipates completing the payment of fees by August 5, 2016.  As a result of the renewal of the claims in May 2016, the Company currently holds these claims.

 

 

Service Agreement

 

On May 20, 2016, the Company entered into a Service Agreement with Charles C. Hooper, Director, for director fees of $5,000 per month beginning May 2016 and the issuance of 250,000 restricted common shares of the Company.  The fees may be paid in cash and or with common stock.

 

Consulting Agreements

 

In May 2016, the Company entered into a three-month Consulting Agreement with Trilogy Marketing Strategies (“Trilogy”) for the development and commercialization of its subsidiary companies.  The Company is to pay Trilogy $7,500 per month and issue 10,000 shares of the Company’s restricted common stock per quarter.  The Consulting Agreement may be extended on a quarterly basis.  With the consent of Trilogy, the Company entered into a Sub-Consulting Agreement with Brian McLain (“McLain.”) pursuant to which the Company is to issue to McLain a total of 750,000 shares of the Company’s common stock.

 

In June 2016, the Company entered into a three-month Consulting Agreement with Uptick Capital LLC (“Uptick”) for strategic, marketing, financial and business planning services.  The Company is to pay Uptick a set-up fee of $2,500 and issue 300,000 shares of the Company’s restricted common stock for the first month and $20,000 worth of restricted shares for each additional three- month renewal term at the Company’s option. 

 

Senior Secured Convertible Promissory Note

 

Effective July 18, 2016, the Company entered into a Senior Secured Convertible Promissory Note with an institutional investor for $189,000, with net proceeds to the Company of $175,000.  The note bears interest at an annual rate of 8%, matures on January 17, 2017 and is convertible into common shares of the Company after six months at a fixed conversion price of $0.25 per share.  In the event of default, the conversion price changes to a variable price based on a defined discount to the market price of the Company’s common stock.  The net proceeds were used to retire two outstanding convertible promissory notes and to provide working capital.