#Panacea particulars plus#
The non-binding agreement with Panacea generally provides for (i) the transfer of $7,170 in operational assets, including an agricultural facility and various extraction and distillation equipment, from Panacea to the Company in exchange for the cancellation of the $7,000 convertible note receivable plus accrued interest (ii) an amendment of transaction documents to remove any future investment rights and obligations of the Company in Panacea, (iii) cancellation of the stock warrant to purchase additional Series B preferred stock and (iv) various other amendments to Panacea’s charter to amend various investors rights therein. The Company entered into a non-binding agreement with Panacea to potentially restructure the investment and business relationship. See Note 6 for additional information on the fair value measurements. The discount on the convertible note receivable and preferred stock is being amortized into interest income over the respective term. Since observable price quotations were not available at acquisition, fair value was estimated based on cost less an appropriate discount upon acquisition. The convertible note receivable and the preferred stock investment are considered available for sale debt securities with a private company that is not traded in active markets. The Company has an investment in Panacea Life Sciences (“Panacea”) that consists of three instruments: (i) shares of Series B preferred stock (“preferred stock”) (ii) a convertible note receivable with a $7,000 face value and (iii) a warrant (“stock warrant”) to purchase additional shares of Series B preferred stock, to obtain 51% ownership of Panacea, at an exercise price of $2.344 per share.
Investment in Panacea Life Sciences, Inc. NOTE 5. – INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE INVESTMENTS & CONVERTIBLE NOTE RECEIVABLE
0 kommentar(er)
