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LEGAL PROCEEDINGS (Details) (Narrative) (USD $)
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1 Months Ended | 12 Months Ended | |
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May 31, 2012
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Jul. 31, 2011
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Apr. 30, 2012
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| Legal Proceedings Details Narrative | |||
| Suit Filed Date | July 2011 | ||
| Plaintiff Name | Cornerstone Bank | ||
| Amount Due | $ 2,000,000 | $ 1,600,000 | |
| Forclose | The bank also sought to foreclose its mortgage on the property securing the Note, which is located in Cherry Hill, New Jersey (the “Property”). | ||
| Settlement Agreement Terms | On May 7, 2012, the Company and Cornerstone entered into a comprehensive settlement agreement that resolves all matters related to Cornerstone’s claims (the “Settlement”). Since that time, the Company and Cornerstone have proceeded to carry out the terms of the Settlement Agreement as follows: (i) the parties stipulated to judgment in the amount of the Indebtedness, with a stay of execution for 2 years pending the Company satisfying the Indebtedness in any of several ways, including direct payments of cash and discounts of up to 30% for early payments, or a combination thereof; (ii) the Company has conveyed the Property to Cornerstone, which will sell the Property and apply the net proceeds to reduce the Indebtedness (in the event the Property is not sold and the Indebtedness satisfied as otherwise described herein, the Property will be reconveyed to the Company); and (iii) the Company has transferred 14,605,614 shares of the Company’s common stock as security for payment of the Indebtedness (the “Stock Collateral”), which can be liquidated by Cornerstone from time to time in accordance with an SEC Rule 10b5-1 plan, with the proceeds being applied to reduce the Indebtedness. Any excess Stock Collateral will be returned to the Company upon payment of the Indebtedness in full. When the property is sold and any and all remaining payments, if any, are made by Nuvilex directly or through liquidation of the transferred stock collateral sold over time, the proceeds will be used to eliminate the Indebtedness, which, together with the Stock Collateral will remain on the Company’s financial statements in the then outstanding amount/value until fully satisfied. The building is listed as a Company asset under “Settlement Obligation Asset” and the indebtedness is listed as a Company liability as “Settlement Obligation Liabilities.” All assets and amounts due under the settlement, including the building, principal, interest and any and all applicable fees are therefore fully reported herein. | ||