7. Short-term convertible loan

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

7. Short-term convertible loan

7. Short-Term Convertible Notes

	Interest rate	Maturity date	December 31, 2016	December 31, 2015
JMJ Financial	10.0%	November 13, 2016	$                   -	$                -
Series L Convertible notes	0.0%	June 30, 2017	468,969	-
			468,969	-
Unamortized fair value of warrant discount			(218,711)	-
			250,258	-
Disclosed as follows:
Short-term poriton			250,258	-
Long-term portion			-	-
			$         250,258	$                -

JMJ Financial convertible note

The Company entered into a Securities Purchase Agreement with JMJ Financial on April 13, 2016, in terms of the agreement the Company borrowed $200,000 in terms of an unsecured convertible promissory note with a maturity date of seven months from the closing date. The principal amount due under the promissory note was $220,000, inclusive of an Original Issue discount and a further 10% once-off interest charge of $20,000 was due in terms of this note. The note was only convertible upon a repayment default, at the lower of $0.03 per share of 60% of the lowest traded price over the preceding 25 day trading period. The Company also issued 3,703,700 warrants exercisable over common shares at $0.03 per share, which warrants contain a cashless exercise option, in terms of the financing arrangement. The note, together with interest thereon was repaid in full during November 2016.

Series L convertible notes

The Company entered into Series L Convertible Securities Purchase Agreements with 8 individuals on December 30, 2016. In terms of these agreements, the Company borrowed an aggregate principal amount of $468,969 in terms of a senior ranking convertible promissory note with a maturity date six months from the issue date and bearing interest at 0% per annum. The notes are convertible at the option of the holder into shares of common stock of the Company at a conversion price of $0.03 per share, subject to certain recapitalization adjustments.

In terms of the Series L Convertible notes issued above, on December 30, 2016, the Company granted three year warrants to the Series L Convertible noteholders, exercisable for 15,633,709 shares of common stock at an exercise price of $0.03, subject to certain recapitalization adjustments, per share, expiring on December 30, 2019 (Refer note 10 below).