XML 23 R13.htm IDEA: XBRL DOCUMENT

Convertible Note Payable	9 Months Ended
Apr. 30, 2017
Notes to Financial Statements
Convertible Note Payable	Note 7 – Convertible Note Payable On March 6, 2017, Generex entered into a Securities Purchase Agreement with Alpha Capital Anstalt (“Alpha”), pursuant to which the Company agreed to issue a Convertible Note due March 6, 2018 (“Convertible Note”) in the principal amount of $674,855. This Convertible Note bears no interest, except in the event of a default, in which the default interest rate is 15% per annum. Consideration received for the Convertible Note was $562,379, comprised of $500,000 in cash (paid directly to Emmaus Life Sciences, Inc. pursuant to the Emmaus LOI (see Note 8), the cancellation of a $50,000 Demand Note the Company had issued to the investor in May 2016 (See Note 6), $3,879 in accrued interest on the Demand 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. This Convertible Note is convertible, at the option of the holder, at any time, into shares of common stock at a conversion rate of $10.00 per share. Upon issuance, the Company recorded a debt discount of $120,976, consisting of $112,476 original issue discount and $8,500 of legal fees, to be amortized over the term of the Convertible Note. For the three months ended April 30, 2017, amortization of debt discount was $16,744 utilizing effective interest rate of 19.91%.

Convertible Note Payable

9 Months Ended

Apr. 30, 2017

Note 7 – Convertible Note Payable

On March 6, 2017, Generex entered into a Securities Purchase Agreement with Alpha Capital Anstalt (“Alpha”), pursuant to which the Company agreed to issue a Convertible Note due March 6, 2018 (“Convertible Note”) in the principal amount of $674,855. This Convertible Note bears no interest, except in the event of a default, in which the default interest rate is 15% per annum. Consideration received for the Convertible Note was $562,379, comprised of $500,000 in cash (paid directly to Emmaus Life Sciences, Inc. pursuant to the Emmaus LOI (see Note 8), the cancellation of a $50,000 Demand Note the Company had issued to the investor in May 2016 (See Note 6), $3,879 in accrued interest on the Demand 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. This Convertible Note is convertible, at the option of the holder, at any time, into shares of common stock at a conversion rate of $10.00 per share. Upon issuance, the Company recorded a debt discount of $120,976, consisting of $112,476 original issue discount and $8,500 of legal fees, to be amortized over the term of the Convertible Note. For the three months ended April 30, 2017, amortization of debt discount was $16,744 utilizing effective interest rate of 19.91%.