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7. PROMISSORY NOTE
6 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
PROMISSORY NOTE

On December 20, 2018, as part of the Mergers with Cure Based Development, the Company converted an outstanding liability held by Cure Based Development and issued in aggregate a $184,300 Promissory Note to Edge of Business, LLC, an entity controlled by the CEO of cbdMD. The liability was converted into an 18 month 6% promissory note. The note is interest only for the first 12 months and thereafter payable in six equal and consecutive monthly installments of principal and interest.

 

On December 20, 2018, with the closing of the Merger Agreement with Cure Based Development, we acquired a $20,000 note payable to an individual, who is the owner of CBD Now, LLC. CBD Now, LLC who now has a contractual right to receive shares of the company as part of the Merger. The note is due on February 20, 2019, but also includes an option for the note holder to elect to extend the maturity date to February 20, 2020. The note bears interest at a rate of 12%. The note was paid off on February 20, 2019.

 

On December 20, 2018, with the closing of the Merger Agreement with Cure Based Development, we acquired a $60,000 note payable to an individual who now has a contractual right to receive shares of the company as part of the Merger. The note is due on March 5, 2019, but also includes an option for the note holder to elect to extend the maturity date to March 5, 2020. The note bears interest at a rate of 12%. As of March 31, 2019, $60,000 of the note payable was outstanding and is recorded as a note payable – related party.

 

On December 20, 2018, with the closing of the Merger Agreement with Cure Based Development, we acquired a $500,000 note payable to an individual who now has a contractual right to receive shares of the company as part of the Merger. The note is due on March 31, 2019, but also includes an option for the note holder to elect to extend the maturity date to March 31, 2020, and the extension has been exercised at minimum through June 30, 2019. The note bears interest at a rate of 12% and interest is paid monthly. As of March 31, 2019, $500,000 of the note payable was outstanding and is recorded as a note payable – related party.