SUBSEQUENT EVENTS |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
15. SUBSEQUENT EVENTS
The Company evaluated subsequent events through November 2, 2023, the date on which these interim financial statements were available to be issued, to ensure that this filing includes appropriate disclosure of events both recognized in the interim financial statements as of and subsequent to September 30, 2023, but were not recognized in the interim financial statements. Except as disclosed below, there were no events that required recognition, adjustment or disclosure in the financial statements.
On October 1, 2023, the Company issued common shares upon conversion of convertible debt in lieu of repayment in cash.
On October 1, 2023, the Company issued common shares upon conversion of prefunded warrants.
On October 12, 2023, the Company was served a legal complaint filed in the Superior Court of California from Stronghold for breach of contract, breach of covenant of good faith and fair dealing, and common count: goods and services rendered in relation to the purchase and sale agreement for the Coachella property (Note 3). The Company intends to vigorously defend itself in this matter; however, we cannot predict the outcome. The Company is unable to estimate the exact amount of loss, its estimated total exposure ranges from $nil to $452,000.
On October 18, 2023 one of the Investors purchased an additional tranche totaling $2,750,000 in convertible debentures and received 620,230 warrants. The convertible debentures and warrants were issued with an exercise price of $2.62. The issuance of the additional tranche triggered the down round provision, adjusting the exercise prices of the First and Second Tranche Debentures as well as the First and Second Tranche Debenture Warrants to $2.62 (Note 8 & 11).
On October 23, 2023, the Company issued fractional shares due to the round up from the reverse stock split.
On October 30, 2023, one of the Investors converted $50,000 of convertible debentures into shares.
On November 1, 2023, the Company issued 160,500 common shares upon conversion of convertible debt in lieu of repayment in cash. |