|3 Months Ended|
Mar. 31, 2019
|Subsequent Events [Abstract]|
NOTE 19 – SUBSEQUENT EVENTS
Debentures Payable Conversion
In April 2019, the Holder of the $10M Debentures converted $500,000 of principal and approximately $70,000 of accrued interest into 211,015 shares of common stock at conversion prices of $2.67 and $2.74 per share.
In May 2019, the Company sold an additional $5,000,000 of convertible debentures bearing interest at the rate of 6% per annum that mature two years from issuance, with a 1% issue discount, resulting in net proceeds to the Company of $4,950,000 (the “$5M Debentures”).
The $5M Debentures were sold to the Holder of the $10M Debentures. The terms of the $5M Debentures are consistent with the terms of the $10M Debentures as described in Note 12 – Debentures Payable, with small variations, most notably a cap on the conversion price. The Company also issued three-year warrants to the Holder to purchase 400,000 shares of common stock at an exercise price of $4.00 per share.
Seed Inventory Purchases
In April 2019, Mari-Hemp purchased an additional $3.5 million of industrial hemp seeds for wholesale hemp distribution and hemp-derived CBD product development.
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://fasb.org/us-gaap/role/ref/legacyRef