Long-Term Debt

3 Months Ended

Mar. 31, 2019

Long-Term Debt [Text Block]

10. Long-Term Debt

														March			December
		Credit			Credit			Credit			Corporate			31, 2019			31, 2018
		Facility			Facility			Facility			Term			Total			Total
											Loan
		(a)			(b)			(c)			(d)
Long-Term Debt	$	757,258		$	423,490		$	36,898		$	2,566,942		$	3,784,588		$	3,727,778
Current portion		(757,258	)		(423,490	)		(36,898	)		(2,566,942	)		(3,784,588	)		(3,727,778	)
Long-term Debt	$	-		$	-		$	-		$	-		$	-		$	-

(a)	The credit facility bears interest at the PACE base rate of 7.00% plus 1.25% per annum, currently 8.25%. The credit facility due on demand, but until a demand is made, is payable in monthly blended installments of principal and interest of $6,558 ($8,764 CAD), and matures on September 2, 2022. The first and only advance on the credit facility on February 2, 2017, in the amount of $1,197,280 ($1,600,000 CAD), is secured by a business loan general security agreement, a $1,197,280 ($1,600,000 CAD) personal guarantee from the President and a charge against the Company’s premises lease. Also pledged as security are the shares of the wholly-owned subsidiaries, a pledge of 3,300,000 of the Company’s shares held by LFGC, 500,000 of the Company’s shares held by the CFO, 2,000,000 of the Company’s shares held by a director’s company and a limited recourse guarantee each of these parties. The credit facility is fully open for prepayment at any time without notice or bonus.
(b)	The credit facility advanced on June 15, 2017, in the amount of $448,980 ($600,000 CAD), bears interest at the PACE base of 7.00% plus 1.25% per annum, currently 8.25%. The credit facility is due on demand, but until a demand is made, is payable in monthly blended installments of principal and interest of $3,667 ($4,901 CAD), and matures on September 2, 2022. The credit facility is secured by a variable rate business loan agreement on the same terms, conditions and security as noted above.
(c)	The credit facility advanced on August 4, 2017, in the amount of $37,415 ($50,000 CAD), bears interest at the PACE base of 7.00% plus 1.25% per annum, currently 8.25%. The credit facility is due on demand, but until a demand is made, is payable in monthly blended installments of principal and interest of $320 ($427 CAD), and matures on September 4, 2022. The credit facility is secured by a variable rate business loan agreement on the same terms, conditions and security as noted above.
(d)	The corporate term loan advanced on September 13, 2017, in the amount of $2,786,779 ($3,724,147 CAD), bears interest at PACE base rate of 7.00% plus 1.25% per annum, currently 8.25%. The corporate term loan is due on demand, but until a demand is made, is payable in monthly blended installments of principal and interest of $22,233 ($29,711 CAD), and matures September 13, 2022. The corporate term loan is secured by a business loan general security agreement representing a floating charge over the assets and undertakings of the Company, a first priority charge under a registered debenture and a lien registered under the Personal Property Security Act in the amount of $2,993,932 ($4,000,978 CAD) against the assets including inventory, accounts receivable and equipment. The corporate term loan also included an assignment of existing contracts included in APA.
	The shares of the wholly-owned subsidiaries and those shares held by the companies and the CFO noted under (a) above, represent security for the corporate term loan.

Repayments are as follows:

In the nine-month period ending December 31, 2019	$ 61,424
In the year ending December 31, 2020	88,637
In the year ending December 31, 2021	97,124
In the year ending December 31, 2022	3,537,403
Total	$ 3,784,588

For the three-month period ended March 31, 2019, $77,619 ($103,189 CAD) (2018-$80,775; $102,118 CAD) in interest was charged.