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Message: Promissory Notes

This is of concern: RVXOT to your knowledge are the promissory notes still in effect?  (Ref - MD&A, April 30, 2021)

 

"We have been advanced funds by Newsoara under an unsecured promissory note and failure to pay all amounts when they become due could result in legal action by Newsoara.

In March 2021, we obtained a $1.5 million loan from Newsoara; we issued an unsecured promissory note which does not bear interest and matures on March 5, 2022. We do not currently have sufficient cash available to repay the loan when it becomes due. We will have to raise additional capital to repay the loan on the maturity date. If we are unable to repay the promissory note, Newsoara could pursue legal action to obtain and enforce a judgment for the amount of the indebtedness, which could have a material adverse effect on our business and operations and our ability to continue as a going concern.

We have been advanced funds under secured promissory notes and failure to repay all amounts upon demand could result in a loss of all of our assets.

In May 2021, the promissory notes due to the Chief Executive Officer / Chairman of the Company and a relative of the Chief Executive Officer / Chairman of the Company were amended to be secured rather than unsecured. The promissory notes are now secured by all of our assets. We do not currently have sufficient cash available to repay the principal amount of the promissory notes upon demand. We will have to raise additional capital to repay the promissory notes. If we are unable to repay amounts owing under the promissory notes, the lenders could proceed to foreclose or otherwise realize upon all of our assets, including our intellectual property, that is security for the indebtedness."

 

Koo

6
Sep 22, 2021 08:09PM
6
Sep 22, 2021 08:45PM
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