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ASSET PURCHASE
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6 Months Ended |
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Oct. 31, 2012
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| Equity Method Investments and Joint Ventures [Abstract] | |
| ASSET PURCHASE |
ASSET PURCHASE
On June 21, 2012, Nuvilex, purchased 100% of the shares of ASPL in exchange for 100,000,000 shares of restricted Nuvilex common stock. A copy of the final Asset Purchase Agreement, dated May 26, 2011, was attached as Exhibit 2.1 on the Company’s Form 10-K for the fiscal year ended April 30, 2012.
Under the terms of the Asset Purchase Agreement, the Nuvilex and ASPL shares are held in escrow until the completion of Nuvilex’s financing obligations and are therefore not reflected in the number of shares issued and outstanding (see Note 9). The Asset Purchase Agreement, as amended, provides that Nuvilex will fund future ASPL operations in the amount of $2.5 million with a target date to complete the funding by December 31, 2012. Nuvilex will continue current funding of $60,000 monthly in operating capital until the overall funding is completed. Since then, Nuvilex and ASPL have agreed to continue their relationship and extended their contract through the first quarter 2013.
The shares for both ASPL and Nuvilex are being held in escrow and are therefore not reflected in the financial statements. This is due to the potential unwinding of the agreement in the event that Nuvilex is unable to satisfy the Asset Purchase Agreement requirements including monthly maintenance payments or the $2.5 million minimum financing requirement.
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