11. SUBSEQUENT EVENTS
On July 31, 2017, the Company completed a sale leaseback agreement with Orca Holdings, LLC (“Orca”). The terms of the agreement resulted in the Company selling its’ SuperLig®-One MRT Rare Earth Pilot Plant (the “Pilot Plant”) for CAD$2.5 million (USD$2 million) (the “Purchase Price”). Orca will lease the Pilot Plant to Ucore over a 3-year term at an annual lease rate of 15% (the “Term”). At the option of either party, the lease may be terminated upon the payout by the Company of the Purchase Price at any time commencing the second year of the Term. Of the total proceeds, USD$1 million (CAD $1.25 million) has been budgeted and set aside for payment to IBC Advanced Technologies to complete the option payments referenced in Note 6, above.
On August 21, 2017, pursuant to the terms of its stock option plan, the Company granted 8.45 million options to Advisory Board personnel, as well as directors, officers, employees and consultants, with an exercise price of $0.265 per share, expiring August 21, 2022, with 1/3 of the options vesting on February 21, 2018 and an additional third vesting every six months thereafter, until fully vested. In addition, subsequent to June 30, 2017 1,550,000 stock options expired unexercised
ucore.com/documents/Ucore_Q2_2017_FS.pdf