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3. Loan Payable
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3 Months Ended |
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Mar. 31, 2012
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| Long-term Debt [Text Block] |
3. Loan
Payable
In
February 2012, the Company issued an unsecured convertible
note in the principal amount of $45,000 bearing interest at
8% per annum and maturing November 30, 2012. The note cannot
be converted for the first 180 days after which it is
convertible at a price equal to 58% of the trading price of
the Company’s shares on the OTC Bulletin Board on the
conversion date.
The
Company can prepay the note as follows:
First
30 days - 115% of principal plus interest
31-60
days - 120% of principal plus interest
61-90
days - 125% of principal plus interest
91-120
days - 130% of principal plus interest
121-150
days - 135% of principal plus interest
151-180
days - 140% of principal plus interest
There
is no right of prepayment after 180 days.
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