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3. Defense Technology Corporation Acquisition
12 Months Ended
Apr. 30, 2016
Notes  
3. Defense Technology Corporation Acquisition

3.  Defense Technology Corporation Acquisition

 

On October 5, 2015, the Company entered into an agreement to acquire 100% of Defense Technology Corporation, a privately held Colorado limited liability company with principal offices in New Port Richey, Florida ("DTC").  DTC is the developer of defense, detection and protection products to improve security for military personnel and schools and other public facilities.  

 

In consideration for the acquisition, the Company will issue 4,000,000 shares of its common stock to the sole shareholder of DTC and certain of its note holders.  The shares will be restricted from trading for a period of one year and will be released on a quarterly basis.  Additionally, DTC will be able to earn additional Company preferred shares, Series "B" Convertible ("Series "B" Shares"), upon attaining certain milestone gross sales.  The closing of the acquisition was scheduled on or before November 30, 2015 and was subsequently extended to December 31, 2015.  The closing was further extended to and completed on July 15, 2016 to allow for completion of the audit of DTC's financial statements.  Following completion of the acquisition, DTC became a wholly owned subsidiary of the Company.  The Company will use its reasonable best efforts to effectuate a spin-off of its present subsidiary, Long Canyon Gold Resources Corp., on terms to be determined.