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Notes Payable to Related Parties
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Notes Payable to Related Parties

5. Notes payable to Related Parties

 

Notes payable to related parties includes a note payable to Catamaran Services, Inc. (“Catamaran”) dated January 22, 2014 for a total value of $504,500 including interest of $4,500 at prime rate plus 1.5% per year, but not to exceed 10%. Catamaran Holdings, Ltd., the sole shareholder of Catamaran, has directors in common with Inversiones, one of the major shareholders of MBC. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the board of directors of the Company is also the Chairman of the board of directors of UBHL.

 

The note is payable within six months following the date of the note, subject to the receipt by the Company of an equity investment by UBHL in an amount sufficient either (a) to pay the note through Permitted Payments, as defined below, or (b) to pay both the note and certain existing obligations of the Company to Cole Taylor. “Permitted Payments” on the note are payments made from the portion of equity investment by UBHL that is in excess of $500,000. If the Company is not able to satisfy its obligations on the note within the six month period following the date of the note, the note shall be automatically extended for additional six month terms until it is paid.

 

On April 24, 2014, the Company issued another note to Catamaran in the principal amount of $500,000 and on terms similar to the previous note.