XML 46 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Subsequent Event
12 Months Ended
Jun. 30, 2020
Subsequent Event  
Subsequent Event

29.                 Subsequent Events

 

Convertible Notes

 

On July 16, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $260,700. The note is due 365 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest price of the common stock traded in the 20 trading days prior to the conversion date.

 

On July 21, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $200,200. The note is due 365 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest price of the common stock traded in the 20 trading days prior to the conversion date.

 

On September 9, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $110,000. The note is due on March 10, 2021 and bear an interest rate of 12%. The conversion price for the note is a fixed price of $0.01 per share. After the 6 month anniversary of this Note, the Conversion Price shall be equal to the lower of the Fixed Price or 65% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTC Marketplace exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent.

 

On September 10, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $227,700. The note is due 365 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest price of the common stock traded in the 20 trading days prior to the conversion date.

 

On September 24, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $212,300. The note is due on March 25, 2021 and bear an interest rate of 12%. The conversion price for the note is a fixed price of $0.01 per share. After the 6 month anniversary of this Note, the Conversion Price shall be equal to the lower of the Fixed Price or 65% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTC Marketplace exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent.

 

On October 8, 2020, the Company entered a convertible promissory note with an accredited investor for a total amount of $231,000. The note is due on April 9, 2021 and bear an interest rate of 12%. The conversion price for the note is a fixed price of $0.01 per share. After the 6 month anniversary of this Note, the Conversion Price shall be equal to the lower of the Fixed Price or 65% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTC Marketplace exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent.

 

Convertible note conversions

 

Subsequent to October 11, 2020, there were multiple accredited investors converted approx. $1,301,700 of the convertible notes with $64,532 accrued interest into 1,081,411,606 shares of the Company’s common stocks.

 

Lease

 

On September 28, 2020, the Company and LMK Capital LLC (“LMK”) entered into a Residential Lease (the “Lease”) pursuant to which LMK agreed to lease to the Company five acres located in Northern California and owned by LMK (the “Property”). Jimmy Chan, Chairman of the Board, Chief Executive Officer, Chief Financial Officer and majority stockholder of the Company, is majority owner of LMK. The term of the Lease begins on October 1, 2020 and ends on September 30, 2023; provided, however, that at the end of the term, the Lease will continue on a month-to-month basis. in the Pursuant to the terms of the Lease, the Company will pay rent in the amount of $20,000 per month. The Lease also provides that the Company will pay a $250,000 security deposit to LMK. Pursuant to the terms of the Lease, the monthly rent will increase to $0.50 per sq. ft. on cultivation area upon approval of certificate of occupancy with a 3% increase each subsequent year.