Canadian Quantum Energy Corporation made the announcement that, pursuant to the investment agreement with the British Virgin Islands-registered company Lang International Holdings Limited and Douglas Brett, the President and CEO of the company, this company has provided a short term loan to Canadian Quantum in the amount of US$350,000.
The loan, which is evidenced by a promissory note and secured against the personal property of Canadian Quantum, will be repaid on the closing of the previously announced private placement offering of Common Shares pursuant to which Lang or any of its associates would purchase 12,750,000 Common Shares at a price of US$0.10 per Common Share for gross proceeds of US$1,275,000.
The company, controlled by Mr. Brett, settled the total amount of its outstanding unsecured demand loan in the amount of US$226,150.12 into 2,261,501 Common Shares at a price of US$0.10 per Common Share. In addition, Mr. Brett has converted the total amount of his outstanding accrued salary up to March 31, 2014, in the amount of $235,000, into a loan, evidenced by a promissory note and secured against the personal property of the Canadian company. The promissory note issued to Mr. Brett is due on September 30, 2015 and bears 12% annual interest.
The President, CEO and director of Canadian Quantum, Mr. Brett will own or control 9,718,922 common shares or approximately 28.03% of the total issued and outstanding common shares and options to acquire 1,000,000 common shares. Assuming the exercise of such options, Mr. Brett would own or control 10,718,922 or approximately 30.05% of the total issued and outstanding Common Shares of Canadian Quantum. The purchase of the common shares was made for investment purposes.
