Quarterly report pursuant to Section 13 or 15(d)

Note Payable

v2.4.0.8
Note Payable
3 Months Ended
Jun. 30, 2014
Notes Payable [Abstract]  
Note Payable
6. Note Payable

 

      June 30, 
2014 
$
    March 31, 
2014 
$
 
                   
  Opening balance     4,068,131       3,574,399  
                   
  Accretion of unamortized discount     121,974       493,732  
                   
  Ending balance     4,190,105       4,068,131  
                   
  Less: current portion     2,853,629       1,966,562  
                   
  Long-term portion     1,336,476       2,101,569  

 

The principal repayments of the note payable are as follows:

 

      $  
           
  June 12, 2013     1,000,000  
  June 12, 2014     1,000,000  
  June 12, 2015     1,000,000  
  June 12, 2016     1,000,000  
  June 12, 2017     1,000,000  
           
        5,000,000  

 

The note payable will be repaid in instalments of $1,000,000 on the anniversary of the agreement beginning on June 12, 2013 with the income earned under the terms of Representation Agreement. If the Company is unable to meet the repayment schedule, PGG will have the option to either roll over any unpaid portion to the following payment date or to convert the outstanding amount into shares of the Company’s stock. The note had been discounted at a market rate of 18% to arrive at the net present value of $3,127,171 as at June 12, 2012. The note is unsecured and cannot itself be used by PGG to cause the Company to become insolvent. During the three months ended June 30, 2014, the Company recorded imputed interest of $225,000 (2013 - $46,237) at a rate of 18% per annum which has been included in additional paid-in capital.