Item 8.01 Other Items
On June 8, 2020, Blox, Inc. ("we", "us", "our", the "Company") entered into a
securities purchase agreement with Power Up Lending Group Ltd. ("Power Up").
The agreement was first disclosed in the Company's current report on Form 8-K
filed on June 8, 2020. Pursuant to the terms of the agreement, in consideration
of $68,000, the Company issued to Power Up a convertible promissory note (the
"Power Up Note") in the aggregate principal amount of $74,800. The Power Up
Note was to become due and payable 12 months following the issue date and bore
interest at the rate of 8% per annum before maturity and 22% per annum after
maturity. The holder could, at its option, beginning December 5, 2020 and until
payment of all outstanding principal and interest, convert all or any portion of
the Power Up Note into shares of the Company's common stock at the price that is
a 25% discount to the lowest trading prices during the 20 consecutive trading
days prior to the conversion date.
Effective October 9, 2020 the Company has entered into an arrangement with its
shareholder, Waratah Investments Limited, to prepay and extinguish the Power Up
Note prior to maturity. The aggregate amount of the prepayment, which includes
accrued interest and a 20% prepayment penalty, is $92,040.12.
In consideration of the financing provided by Waratah, the Company will issue to
Waratah a convertible promissory note in the amount of $92,040.12. The new note
will bear interest at 8% per annum, mature on October 9, 2021, and will be
convertible before and after maturity into common shares of the Company at a
rate that is a twenty-five percent (25%) discount to the lowest trading price of
the common shares during the twenty (20) day period ending on the last complete
trading day prior to the applicable conversion date. The new note will not be
subject to default interest.
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