XML 30 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Notes Payable
9 Months Ended
Apr. 30, 2019
Debt Disclosure [Abstract]  
Notes Payable

Note 13 – Notes Payable 

 

On October 26, 2018, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold its Note Due October 26, 2019 (“Note”) in the principal amount of $682,000The purchase price of the Note was $550,000 from which Generex was required to pay the $15,000 fee of the investor’s counsel. The remaining $147,000 of principal amount represents original issue discount. The Note does not bear any stated interest in addition to the original issue discount. The effective interest is 27.5%.

 

On November 25, 2018, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold its Note Due November 26, 2019 (“Note”) in the principal amount of $1,060,000. The purchase price of the Note was $1,000,000. The remaining $60,000 of principal amount represents original issue discount. The Note does not bear any stated interest in addition to the original issue discount.

 

On January 24, 2019, Generex entered into Securities Purchase Agreements with three investors pursuant to which the Company agreed to sell and sold convertible notes bearing interest at 10% per annum (the “Notes”) in the aggregate principal amount of $2,110,000. The purchase price of the Notes was $2,010,000 and the remaining $100,000 of principal amount represents original issue discount. Pursuant to the Securities Purchase Agreements, Generex also sold warrants to the investors to purchase up to an aggregate 120,570 shares of common stock with the fair value of the warrants as of the date of issuance in excess of the Notes (Note 14) resulting in full discount of the Notes.

On February 4, 2019, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold a convertible note bearing interest at 10% per annum (the “Note”) in the principal amount of $750,000. The purchase price of the Note was $712,500 and the remaining $37,500 of principal amount represents original issue discount. Pursuant to the Securities Purchase Agreements, the Company also sold to the Investor warrants to purchase up to an aggregate 45,000 shares of common stock with the fair value of the warrants as of the date of issuance in excess of the Notes (Note 14) resulting in full discount of the Notes.

On February 15, 2019, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold a convertible note bearing interest at 10% per annum (the “Note”) in the principal amount of $750,000The purchase price of the Note was $712,500 and the remaining $37,500 of principal amount represents original issue discount. Pursuant to the Securities Purchase Agreements, the Company also sold to the Investor warrants to purchase up to an aggregate 57,143 shares of common stock with the fair value of the warrants as of the date of issuance in excess of the Notes (Note 14) resulting in full discount of the Notes.

On April 8, 2019, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold a convertible note bearing interest at 10% per annum (the “Note”) in the principal amount of $530,000The purchase price of the Note was $505,500 and the remaining $25,000 of principal amount represents original issue discount. Pursuant to the Securities Purchase Agreements, the Company also sold to the Investor warrants to purchase up to an aggregate 92,842 shares of common stock with the fair value of the warrants as of the date of issuance in excess of the Notes (Note 14) resulting in full discount of the Notes.

On April 23, 2019, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold a convertible note bearing interest at 10% per annum (the “Note”) in the principal amount of $530,000The purchase price of the Note was $505,500 and the remaining $25,000 of principal amount represents original issue discount. Pursuant to the Securities Purchase Agreements, the Company also sold to the Investor warrants to purchase up to an aggregate 84,126 shares of common stock with the fair value of the warrants as of the date of issuance in excess of the Notes (Note 14) resulting in full discount of the Notes. 

For the three months ended April 30, 2019, the Company issued 279,111 to investors of convertible notes disclosed above. For the nine months ended April 30, 2019, the Company issued 15,483,681 warrants which consisted of 399,681 issued to investors of convertible notes disclosed above, 15,000,000 issued to a former shareholder of NGDx upon acquisition of the remaining 49% interest of the entity (Note 9) and 84,000 issued to AEXG in connection with an arbitrator’s award (Note 4). With the exception of the 84,000 warrants issued to AEXG, all other granted warrants vested immediately upon issuance.

Pursuant to its wholly owned subsidiary NuGenerex, the Company completed the acquisition of the assets and 100% of the membership interests of two pre-operational pharmacies, Empire State Pharmacy Holdings, LLC and Grainland Pharmacy Holdings, LLC, pursuant to the bills of sale for a consideration of $320,000 Promissory Note. Refer to Note 9 for details.

 

Pursuant to the second closing of the acquisition of certain operating assets of Veneto Holdings, L.L.C. and its affiliates, Generex’s wholly owned subsidiary agreed to assume outstanding debt of Veneto subsidiaries to Compass Bank, including obligations under a term loan and a revolving line of credit. Claiming three separate types of default, Compass Bank has demanded payment in full of amounts due under the term loan and revolving line of credit, in an aggregate amount of approximately $3,404,000. Generex believes it has defenses to such demand, including that the bank was not an intended beneficiary of the subsidiary’s agreement to assume the debt. 

 

Pursuant to its acquisition of Regentys, the Company inherited convertible notes with several investors which collectively holds a principal plus discount balance of $611,761 and has accrued interest of $12,899 as of April 30, 2019.