|9 Months Ended|
Sep. 30, 2020
|Subsequent Events [Abstract]|
Effective October 5, 2020 the Company and Cannaworx Holdings, Inc. (CWX) entered into a second amendment to the Company’s binding letter of intent to acquire CWX, extending the execution deadline to October 31, 2020. On November 6, 2020 the Company and CWX entered into a third amendment to the Company’s binding letter of intent to acquire CWX. Pursuant to this amendment the parties extended the completion deadline from October 31, 2020 to December 31, 2020, however the amendment will expire if CWX does not receive $335,000 by November 16, 2020.
From October 1, 2020 through November 12, 2020 the Company issued loans convertible into common stock at $2.50 per share for $356,500 (through November 12, 2020 the Company had received proceeds on $241,500 of the loans). The loans carry 10% interest rates and one-year terms. To secure these loans, the Company issued 12,500 shares of common stock and warrants exercisable into 50,600 common shares (five-year life and a $3.50 exercise price). During this period, the Company received $200,000 under a Merchant Agreement secured by second position rights to all customer receipts. Under the terms of this agreement the Company agreed to repay $275,800 through daily payments of $1,724 over eight months. In this time, the Company also repaid a portion of a convertible loan issued July 17,2018 for $25,000 and partially repaid three related party loans for $49,175.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef