Entry into a Material Definitive Agreement.
On October 12, 2018 (the “Closing Date”), Mexus Gold US (the “Company”) closed on a Convertible Promissory Note (“Note”) financing with an accredited investor (“Investor”) pursuant to which the Investor invested $200,000 (the “Financing”).
On the Closing Date, the Company issued to Investor a Convertible Promissory Note in the principal amount of $200,000. The Note matures in 12 months, carries a per annum interest rate of six percent (6%) and is convertible in whole or in part into shares of Company common stock at a conversion rate of $.006666667 per share.
Events of Default include the events set forth in Section 2.1 of the Note, and include, but are not limited to, failure to make timely interest or principal payments, failure to deliver conversion shares, bankruptcy, receivership, insolvency, and failure to reserve required shares for issuance upon conversion.
Upon an Event of Default under the Note, Investor may accelerate the outstanding principal amount of all outstanding Note, plus accrued and unpaid interest, and other amounts owing through the date of acceleration.
Pursuant to the terms of the Note, the Company is required to reserve and keep available out of its authorized and unissued shares of common stock, a minimum of 30,000,000 shares of common stock.
The foregoing summary description of the terms of the transaction may not contain all information that is of interest to the reader. For further information regarding the terms of the transaction documents, reference is made to such transaction documents, which are filed hereto as Exhibits 10.1 and 10.2, and are incorporated herein by this reference.