Biopower Operations Corp (BOPO), a company focused on renewable energy solutions, recently raised $250,000 through the issuance of 625,000 shares of restricted common stock to a Canadian investor at $0.40 per share. This significant cash infusion bolsters the company’s finances; however, BOPO still has several convertible debt and past due loan obligations that need to be addressed.
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Outstanding Debts and Defaults
In the company’s recent SEC report, it was revealed that several of their notes payable and convertible debt are in default. As of November 30, 2022, all loans are past due and in default, totaling $694,198 in principal owed. These loans have various interest rates ranging from 4% to 8% and varying maturity dates.
Additionally, accrued interest on the outstanding notes payable and convertible debt have amounted to $320,089 as of November 30, 2022, and $275,071 as of November 30, 2021. This interest expense on these debts amounted to $44,990 for the years ended November 30, 2022, and November 30, 2021.
Related-Party Transactions
Biopower’s management also had several related-party transactions that included loans made by the company’s Chief Operating Officer and the issuance of non-convertible 4% interest-bearing notes to settle accrued compensation. Accrued interest on these related party notes payable and convertible debt amounted to $568,912 as of November 30, 2022, and $484,156 as of November 30, 2021.
Changes in Stockholders’ Equity
Notably, the issuance of new shares led to a significant change in BOPO’s stockholders’ equity. On July 28, 2021, the company amended and restated its articles of incorporation to increase the number of authorized shares of common stock from 100,000,000 to 500,000,000 and the number of authorized shares of preferred stock from 10,000 to 5,000,000. As a result, as of November 30, 2021, the company had authorized 500,000,000 shares of common stock and 5,000,000 shares of preferred stock.
Future Outlook and Growth Initiatives
Despite facing challenges with convertible debt and past due loans, the new stock issuance indicates that investors have confidence in Biopower Operations Corp’s future. The funds raised may be used to address outstanding debts and expand the company’s renewable energy operations. It is essential for the company to continue its financial growth and maintain a balance between managing debt and pursuing new growth initiatives.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!