Note 4 - Advances to CEN Biotech Ukraine

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Advances to Related Party [Text Block]

NOTE

4

– ADVANCES TO CEN BIOTECH UKRAINE

At both

June 30, 2020

and

December 31, 2019,

the Company had advances of

$1,065,328

to CEN Biotech Ukraine, LLC, a related party, (see Note

12

). The advances were for the purpose of funding the operations of CEN Biotech Ukraine, LLC.

Bahige (Bill) Chaaban, our Interim Chief Executive Officer and member of our Board of Directors, and Usamakh Saadikh, a member of our Board of Directors, each directly own

25.5%

of CEN Ukraine respectively. The remaining

49%

of CEN Ukraine is owned by XN Pharma, which is an entity jointly owned by Bahige (Bill) Chaaban and Usamakh Saadikh. Bahige (Bill) Chaaban and Usamakh Saadikh do

not

currently hold any positions with CEN Ukraine. CEN Ukraine is operated and controlled by its sole director. Pursuant to Ukrainian law, shareholders of a company do

not

have the ability to control the company or the actions of its director. CEN Ukraine is operated under the direction of its management per the guidelines of Ukrainian law. These loans are unsecured, non-interest bearing, and are due on demand.