Promissory Notes (Zenith CC, MD&A July 31, 2022    p. 11)

"During the three months ended July 31, 2022, the Chief Executive Officer / Chairman of the Company lent an additional CAD$0.6 million. As at July 31, 2022, promissory notes totalling $2.5 million are due to the following four related party lenders:

• the Chief Executive Officer / Chairman of the Company – the outstanding $1.2 million (CAD$1.5 million) promissory note bears interest at 5%, is payable on demand and is secured by a security interest in all of the Company’s assets; (bolding added)

• another director of the Company – the outstanding $0.3 million (CAD$0.4 million) promissory note bears interest at 5% per annum, is payable on demand and is unsecured;

• a relative of the Chief Executive Officer / Chairman of the Company – the outstanding $1.0 million promissory note bears interest at 11% per annum, is payable on demand and is secured by a security interest in all of the Company’s assets;  (bolding added)

• the Chief Financial Officer – the outstanding CAD$10 thousand promissory note bears interest at 8% per annum, is payable on demand and is unsecured."

I believe this is the first time the notes held by the CEO are noted to be secured by all of the Company's assets. In the past, all that was stated is that the notes are secured, with no other notations.  

Koo