Gainey Capital Corp. (TSXV: GNC) (“Gainey” or the “Company”) reports that Golden Anvil S.A. De C.V. (“Golden Anvil”) has defaulted on a Promissory Note issued to the Company as part of the Qualifying Transaction.
The Company received a signed Promissory Note in the amount of $266,215 from Golden Anvil to reflect amounts owing to Gainey Capital Corp. for various costs on its Mexican property. These costs were paid by Gainey Capital but were incurred by Golden Anvil prior to the finalizing of the Qualifying transaction which closed in September 2013.
The Note amount carries a 12% per annum interest rate compounded monthly and as of December 31, 2015 this debt, including interest, has a fair market value of $348,265. The Promissory Note is secured by 800,000 Consideration Shares (“Pledged Shares”) and personally guaranteed by Marco Antonio Rincon-Valdes and Francisco Rolando Rincon-Romo. Golden Anvil agreed to repay 50 percent of the Note on or before September 27, 2014, and the remaining 50 percent on or before March 27, 2015.
As per the Asset Purchase Agreement dated September 27, 2013, and given the 800,000 Consideration shares will not sufficiently cover the total outstanding, Gainey has instructed its legal counsel to settle this matter under Arbitration.