Subsequent Events

9 Months Ended

Sep. 30, 2020

20. Subsequent Events

The Company's management has evaluated subsequent events up to the date the interim condensed consolidated financial statements were issued, pursuant to the requirements of ASC 855 and has determined the following to be material subsequent events:

(a)

On November 12, 2020, PACE and the Company reached a new agreement to repay the remaining credit facilities and corporate term loan on or before January 29, 2021. As part of the agreement, the Company is to bring all the amounts owing to PACE current, and prepay to January 2021, the regular monthly principal and interest payments by November 12, 2020. On November 13, 2020, the agreed amounts were paid to PACE. PACE has also committed to renew the letter of credit in favour of the MECP to January 29, 2021.

(b)	On November 12, 2020, the Company finalized an additional advance on its 1^st. mortgage in the amount of $537,758 ($700,000 CAD). The funds received, $398,892 ($519,238), were net of financing fees of $50,703 ($66,000 CAD) and expenses including accrued interest, property taxes and other disbursements of $88,163 ($114,762 CAD). The new 1^st. mortgage of $2,535,146 ($3,300,000 CAD) was registered on November 12, 2020. The terms of the new 1^st. mortgage are as noted under long-term debt, note 12 (b), except that the interest rate will be the higher of the Royal Bank of Canada's prime rate plus 7.55% (currently 10% per annum) and 10% per annum, and the principal amount is due December 1, 2021. The additional advance was used to purchase the remaining lands contained in the May 24, 2019 share purchase agreement of 1684567 Ontario Inc., in the amount of $161,322 ($210,000 CAD), plus the harmonized sales taxes. Management intends to use a portion of the additional advance to satisfy the new agreement with PACE, described under subsequent events, note 20 (a).

(c)	On October 26, 2020, the Company received a statement of defense and counterclaim from the defendants noted above under legal proceeding, note 19, in response to the Company's statement of claim. The defendants are seeking $385,458 ($514,150 CAD) in special damages and $374,850 ($500,000 CAD) in punitive and exemplary damages. The Company filed its reply and defense to counterclaim on November 13, 2020.

(d)	From October 19, 2020 through November 13, 2020, the CEO provided loans totaling $55,028 ($73,400 CAD) to the Company and on October 22, 2020, the Company repaid $22,791 ($30,400 CAD) of these loans.

(e)	On October 16, 2020, the Company paid a deposit in the amount of $3,749 ($5,000 CAD) for a hauling truck trailer estimated at $111,705 ($149,000 CAD).