Loans payable

6 Months Ended

Jun. 30, 2017

Payables and Accruals [Abstract]

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		June 30, 2017		December 31, 2016
Cranberry Cove Holdings
First Mortgage	8.0	%	August 14, 2017	$	2,822,979	$	—	$	2,822,979	$	—
Second Mortgage	12.0	%	November 4, 2018		404,562		1,663		406,225		—
Seastone of Delray
Mortgage	5.0	%	February 13, 2020		2,989,937		5,480		2,995,417		—
				$	6,217,478	$	7,143	$	6,224,621	$	—
Disclosed as follows:
Short-term portion								$	3,234.684	$	—
Long-term portion									2,989,937		—
								$	6,224,621	$	—

The aggregate amount outstanding is payable as follows:

	Amount
2017	$	3,234,684
2018		—
2019		—
2020		2,989,937
Total	$	6,224,621

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$3,663,380, 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 $23,118 (CDN 30,000).

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

The second mortgage had an initial principal amount outstanding of CDN$350,000, on May 23, 2017, the Company sold CDN$175,000 of the mortgage it owned to the second mortgage holder for gross proceeds of CDN$150,000, the balance outstanding on the second mortgage is now CDN$525,000, the mortgage is secured by the Cranberry Cove Holdings properties 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 CDN$525,000, and matures on November 4, 2018, with monthly interest payments of CDN$3,500.

Seastone of Delray  

The Company entered into a Mortgage and Security Agreement with Seastone Delray Healthcare, LLC on February 13, 2017 for the aggregate principal sum of $3,000,000, bearing interest at the rate of 5% per annum, maturing on February 13, 2020, with monthly repayments of interest and principal of $15,000. 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.