15. Loans payable

3 Months Ended

Mar. 31, 2017

Payables and Accruals [Abstract]

15. Loans payable

15. Loans payable

On February 14, 2017, the Company acquired 100% of the equity of CCH, from Leon Developments. The subsidiary has certain mortgage indebtedness amounting to CDN$4,115,057 (US$3,145,549) at the date of acquisition, which was assumed by the Company.

On February 14, 2017, the Company acquired certain assets of Seastone of Delray, including fixed property. A portion of the purchase consideration was funded by a purchase money mortgage secured over the properties acquired, amounting to $3,000,000.

The loans payable is as follows:

	Interest rate	Maturity date	Principal Outstanding	Accrued interest	March 31, 2017	December 31, 2016
Cranberry Cove Holdings
First Mortgage	8.0%	August 14, 2017	$    2,753,611	$       13,911	$      2,767,522	$                -
Second Mortgage	12.0%	November 4, 2017	262,960	-	262,960	-
Seastone of Delray
Mortgage	5.0%	February 13, 2020	2,997,500	12,490	3,009,990	-
			$ 6,014,071	$     26,401	$   6,040,472	$                -
Disclosed as follows:
Short-term portion					$      3,042,972	$                -
Long-term portion					2,997,500	-
					$   6,040,472	$                -

The future aggregate principal outstanding will be repaid as follows:

	Amount
2017	$	3,016,571
2018		—
2019		—
2020		2,997,500
Total	$	6,014,071

Cranberry Cove Holdings

The first mortgage with an aggregate principal amount outstanding of CDN$3,500,000, including late charges, interest and penalties of CDN$165,057 for a gross aggregate amount outstanding of CDN$3,665,057, over the Cranberry Cove Holdings properties is secured by the property located at 3571 Muskoka Road, #169, Bala, described as PT LT 15 CON F Medora PT1 35R5958, PT 2 &3 35R11290, Muskoka Lakes. The mortgage bears interest at the rate of 8% per annum on the aggregate principal outstanding of $3,500,000 and matures on August 14, 2017, with monthly interest payments of $23,333.

During March 2017, the Company made a principal payment of CDN$100,000 on the first mortgage.

The second mortgage with an aggregate principal amount outstanding of CDN$350,000, over the Cranberry Cove Holdings properties is secured by the property located at 3571 Muskoka Road, #169, Bala, described as PT LT 15 CON F Medora PT1 35R5958, PT 2 &3 35R11290, Muskoka Lakes. The mortgage bears interest at the rate of 12% per annum on the aggregate principal outstanding of $350,000, and matures on November 4, 2018, with monthly interest payments of $3,500.

Seastone of Delray

The Company entered into a Mortgage and Security Agreement with Seastone Delray Healthcare, LLC on February 13, 2017for the aggregate principal sum of $3,000,000, bearing interest at the rate of 5% per annum, maturing on February 13, 2020, with monthly interest payments of $12,500. The proceeds of the mortgage of $3,000,000 was used to fund the acquisition of the Seastone Delray properties, described as follows:

Parcel 1, Moore’s Landing according to the Plat thereof, as recorded in Plat Book 42, page 72, Public Records of Palm Beach County, Florida

Unit numbers 1 to 10, inclusive of Seastone Condominium Apartments, a Condominium, according to The Declaration of Condominium recorded on O.RT. Book 3313, Page 122 and all exhibits thereof, Public Records of Palm Beach County, Florida.