Subsequent Events

On March 29, 2016, we closed the first tranche of a private placement offering of convertible debentures in the aggregate amount of $45,000. The convertible debentures mature on August 31, 2020, The convertible debentures pay an interest rate of 10% per annum (on a simple basis) and are convertible at (i) $0.12 per Conversion Share at any time prior to August 31, 2016 (ii) $0.15 per Conversion Share at any time prior to August 31, 2017; (iii) USD$0.20 per Conversion Share at any time prior to August 31, 2018 or, at the sole option of the Holder, a price equal to a 20% discount to the 10 -day average closing price of the Common Shares on the Exchange prior to the date of conversion and adjusted for the applicable US dollar to Canadian dollar exchange rate on the last Business Day preceding the date of conversion (the “ Average Price ”) provided that the Average Price is less than $0.20 and provided further that the Conversion Price shall not be less than $0.15 ; (iv)$0.2 5 per Conversion Share at any time prior to August 31, 2019 or, at the sole option of the Holder, the Average Price provided that the Average Price is less than $0.25 and provided further that the Conversion Price shall not be less than $0.15 ; and (v) $0.30 per Conversion Share at any time prior to August 31, 2020 or, at the sole option of the Holder, the Average Price provided that the Average Price is less than $0.30 and provided further that the Conversion Price shall not be less than USD$0.15.