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Subsequent Events
9 Months Ended
Apr. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events

 Note 13 - Subsequent Events:

 

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

 

On May 16, 2017, the Emmaus LOI was terminated. As of April 30, 2017, the Company had paid an aggregate $4,000,000 in cash deposits to Emmaus under the LOI. Emmaus is required to repay the $4,000,000 within sixty days after termination of the LOI.

 

On May 24, 2017, the Company terminated Andrew Greene as its Chief Operating Officer and an employee of the Company. Mr. Greene remains a member of the Company’s Board of Directors.

 

Since January 31, 2017, the former majority shareholder of HDS has made further advances and/or loans to HDS totaling $--93,000 as of the date of this filing.

 

The $674,855 Convertible Note referenced in Note 7 included a provision stating that if the Company failed to timely consummate the transaction with Emmaus pursuant to the Letter of Intent, the Note would become immediately due and payable, On May 30, 2017, the Company received notice from the investor’s counsel declaring the Note due and payable due to the termination of the Letter of Intent.

On April 17, 2017, the Purchaser under the Securities Purchase Agreement for Series H and Series Preferred Stock failed to close the sale of Series I Preferred Stock despite the Company being ready, willing and able to proceed. Under the Securities Purchase Agreement, in the event the Purchaser fails to purchase 100% of the shares of Preferred Stock, the Company can decline to sell any further securities to the Purchase. On April 23, 2017 the Company notified the Purchaser in writing that its rights to purchase additional shares were forfeit.