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Subsequent Events
6 Months Ended
Jan. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events

Note 11 - Subsequent Events:

 

The Company has evaluated subsequent events occurring after the balance sheet date through the date the consolidated financial statements were issued and identified the following for disclosure:

 

During February 2017, the Company offered all current warrant holders an option to exercise their warrants on a cashless basis at a reduced exercise price. The Company issued a total of 103,809 shares of common stock in connection with the exerci se of 314,684 warrants.

 

During February 2017, the Company issued 33,939 shares of common stock for the conversion of 350 shares of Series G convertible preferred stock and the related make-whole payments.

 

The Emmaus LOI required that Generex pay a deposit of $1,500,000 to Emmaus within three weeks of January 16, 2017, which was February 6, 2017. On February 6, 2017, the Company and Emmaus entered into waiver agreements extending the time for Generex to make the deposit until February 24, 2107, and otherwise amending the LOI.

 

On March 3, 2017, Generex and Emmaus entered into a further waiver and amendment to the LOI which provided that Generex must provide a $500,000 deposit on or prior to March 6, 2017 and within ten (10) days of the Company’s effectiveness of the reverse stock split of its common stock, the Company shall provide an additional deposit of $3,000,000. The payment of $500,000 was made and accepted on March 6, 2017. FINRA approved the reverse stock split effective March 18, 2017, therefore the additional deposit of $3,000,000 is due March 30, 2017.

 

On March 6, 2017, Generex entered into a Securities Purchase Agreement with an investor, pursuant to which the Company agreed to issue a Convertible Note due March 6, 2018 (“Note”) in the principal amount of $674,855. Consideration received for the Note was $562,379, comprised of $500,000 in cash, the cancellation of a $50,000 demand Note the Company had issued to the investor in May 2016, $3,879 in accrued interest on the prior note and $8,500 in legal fees for the investor’s counsel, which the Company was obligated to pay pursuant to the Securities Purchase Agreement. The remaining $112,476. of principal amount represents original issue discount.

 

Since January 31, 2017, the former majority shareholder of HDS has made further advances and/or loans to HDS totaling $149,000 as of the date of this filing.