Hi ron4u

You asked ......

I can't figure this one out, any ideas?

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Does this help...

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14. SUBSEQUENT EVENTS

(Continued)

e) On September 22, 2010, the Company received a $400,000 loan from a private

company owned by a significant shareholder of the Company. The loan bears interest at

10% per annum, compounded monthly, and is payable together with the outstanding

principal no later than March 21, 2011. As additional consideration, subject to regulatory

approval, the Company will issue 800,000 common shares (“Bonus Shares”) to the

lender at a deemed price of $0.05 per Bonus Share. The loan also provides for a

general security agreement over the assets of the Company.

This is from the following.........

1