8.01 Other Information
and Settlement of Convertible Debt
company has settled and retired various notes in order to prevent dilution and converting of certain common shares as follows:
September 11, 2019, the company agreed to a prepayment of a convertible note with Power Up Lending Group LTD dated March 14, 2019
with an original principal amount of $73,000 at a rate of 10% interest. The agreed upon prepayment amount is $120,552. Upon payment
the note will be retired in full. On March 14, 2019, the Company issued a convertible note to Power Up Lending Group Ltd. for
$73,000, of which $70,000 was received in cash and $3,000 was recorded as transaction fees. The note bears interest at 10% (increases
to 22% per annum upon an event of default), matures on March 14, 2020, and is convertible into 61% multiplied by the average of
the two lowest trading prices during the 20 day trading period on the trading day prior to the conversion date. The Company recorded
a debt discount from the derivative equal to $73,000 due to this conversion feature, and $21,540 has been amortized to the statement
of operations. The debt discount and transaction fee interest had a balance at June 30, 2019 of $51,460. As of June 30, 2019,
the note had a principal balance of $73,000 and accrued interest of $2,160.
on CBD Extraction System Purchase Orders and Delivery
company received purchase orders from United Opportunities LTD on May 28, 2019 and July 31, 2019 in the amounts of $2,880,000
and $16,945,668 respectively.
company received a purchase order from Brand House Ventures Inc. on July 10, 2019 in the amount of $4,320,000.
company is manufacturing the systems in Grass Valley, California in order to maintain quality assurance. Each system requires
a 50% deposit upon successful on-site inspection, C1D1 Certification Approval, platform design needs, and process specifications
based upon a needs assessment. This process can take 90-120 days depending upon State and County regulations.
the company anticipates manufacturing and delivery on or before December 15, 2019.