|6 Months Ended|
Feb. 29, 2020
|Subsequent Events [Abstract]|
Events after the reporting date not otherwise separately disclosed in these consolidated financial statements are:
Between May 8, 2020 and May 27, 2020 a convertible debt holder converted $110,000 of principal into 4,224,964 shares at an average conversion price of $0.026 per share.
On March 11, 2020, the Company issued a promissory note to a private investor who advanced the Company $100,000, guaranteed by the Chairman of the Board. The promissory bears no interest and was repayable on April 13, 2020. The promissory note has not been repaid as yet.
On March 30, 2020, the Company issued to Petroleum Capital Funding L.P., an arm's length private lender, a secured convertible debenture in the principal amount of US$471,000, which after taking into account an original issue discount of US$78,500, or approximately 16.67%, resulted in gross proceeds to the Company of US$392,500. The proceeds of this debenture were received prior to February 29, 2020.
The Company's obligations to the Lender under the Debentures have been secured by a first priority lien on all bitumen reserves at the Company's Asphalt Ridge property, consisting of 8,000 acres.
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