It also states that along with ZERO DEBT they had cash and securities of $600,000 as of November 15 2011.
so correct me if I'm wrong but what happened to the more than $4.4 million WPX's management had already lent discovery harbour prior to this date?
(a) Discovery Harbour Resources Corp.
On June 1, 2010, the Company advanced an unsecured line of credit of up to $2,300,000 bearing 6% interest rate per annum to Discovery Harbour Resources Corp., a private company, related through a common director. On June 8, 2010 and September 1, 2010, the Company advanced an unsecured line of credit of up to $800,000 bearing 11% interest rate per annum to Discovery Harbour. The loans were due on demand within forty five calendar days from the date written notice was delivered to the corporate offices of Discovery Harbour. The loans were measured at amortized cost which approximated its carrying value due to its short term nature for the year ended September 30, 2010. During the year ended September 30, 2011, the Company advanced an unsecured line of credit of up to $1,350,000 to Discovery Harbour.
Common Shares Issued
39, 415, 000
Issued & Outstanding 46, 571, 000
Debts 0 (zero)
Cash & Securities $600,000*
*as of November 15,, 2011
Maybe the answer is below in WPX's recent financial statement.
On January 1, 2011 and amended on November 15, 2011, the Company and Discovery Harbour entered into a convertible debenture agreement whereby the Company may, at its sole option, at any time until December 31, 2013, convert a total outstanding principal in an amount of $4,450,000 and any interest accrued from June 1, 2010 to December 31, 2010 in an amount of $56,964 into common shares of Discovery Harbour at a price of $0.35 per share. Under the terms, the convertible debenture is not interest-bearing and is secured by all present and subsequently acquired personal property of Discovery Harbour.
So as of November 15 2011 discovery harbour considers(according to its website today) that it has ZERO DEBT AND ONLY $600,000 in cash or securities, yet in WPX's financial statements they are still classifying it as a loan that is receivable.
very, very interesting.