NOTE 15 - MATERIAL TRANSACTION
|12 Months Ended|
Dec. 31, 2015
|Notes to Financial Statements|
|NOTE 15 - MATERIAL TRANSACTION||
NOTE 15 MATERIAL TRANSACTIONS
Mia Development LLC (Mia) entered into a long term lease with First State Compassion Center. Mia is currently subleasing the building but has signed an Agreement of Sales with the owner. Upon First State Compassion Center securing licenses and permits for the growing and sale of medical marijuana in the state, Mia may purchase the building. If the tenant is unable to secure the appropriate licenses and permits, the Agreement of Sale to purchase the building will be null and void.
In January of 2015, First State Compassion Center Inc. issued a promissory note to Mia in the amount of $1,100,000. The note carries a 12.5% interest rate and is due on December 31, 2019. During 2015, the note will act as a revolving credit line. Whatever the outstanding balance is eight months from the date of execution shall be fixed as the amount due and payable of the note, not to exceed $1,100,000. The balance of the note on December 31, 2015 is $688,359.
During the year ended December 31, 2015 Mia issued shares of Class A units for $1,669,950. As part of the operating agreement, the Class A members will receive seventy percent of the operating cash flow until they receive 100% of their investment back.