| NOTE 14 - SUBSEQUENT EVENTS | In
accordance with ASC 855-10, all subsequent events have been reported through the filing date as set forth below. Refinery
Transaction On
March 4, 2017, MMEX Resources Corporation (the “Company”) entered into an agreement with Maple Resources Corporation
(“Maple”), a related party, to acquire all of Maple’s right, title and interest (the “Rights”) in
plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in Pecos County, Texas (the “Refinery
Transaction” or the “Project”). Pursuant to the Refinery Transaction, the Company agreed to acquire the Rights
in exchange for the issuance of 7,000,000,000 new common shares (the “Purchased Shares”). The
Refinery Transaction provides for the Company to issue the Purchased Shares in two tranches, of which the First Tranche of 1,500,000,000
shares was issued on March 4, 2017. The Second Tranche of 5,500,000,000 shares is to be issued once the CompanyÂ’s Articles
of Incorporation are amended to increase the number of authorized shares of common stock, as more particularly described below.
In addition, the Second Tranche amount of shares will be adjusted (up or down) subject to valuation of the Refinery Transaction
by a third party outside consultant. Completion
of the Project is subject to the receipt of required governmental permits and completion of required debt and equity financing. In
connection with the amendment to the CompanyÂ’s Articles of Incorporation discussed below, Maple agreed to waive its right
to receive the second tranche of 5,500,000,000 shares of common stock. Amendment
of Articles of Incorporation On
March 7, 2017, the holders of more than 50.1% of the outstanding shares of common stock of the Company executed their written
consent in lieu of special meeting approving an amendment and restatement of the articles of incorporation to provide for an increase
in the authorized shares of common stock from 3,000,000,000 to 10,000,000,000 shares. In addition, the articles of incorporation
will be amended to provide for two classes of common shares: (i) Class A Shares, having one vote per share, and (ii) Class B Shares,
with 10 votes per share. All of the currently outstanding shares of common stock will be reclassified as Class A Shares, except
that all of the Purchased Shares issued or to be issued in the Refinery transaction will be Class B Shares. Other than the provisions
of the voting rights, the two classes of shares of common stock will have equal terms and conditions. As of the date of filing
of this report, these amendments to the articles of incorporation have not been filed. Settlement
Agreement As
discussed in Note 7, on October 28, 2016, the Company entered into a Settlement Agreement with RCP. Pursuant to the Settlement
Agreement, as amended, RCP purchased a total of $84,782 outstanding payables from the Company for shares of common stock of the
Company. During November 2016 through January 2017, we have issued a cumulative total of 452,000,000 common shares pursuant to
the Settlement Agreement and, as of March 9, 2017, we issued an additional 37,000,000 common shares and have terminated any further
obligation to issue shares. Our creditors will not receive further funding from the Settlement Agreement. Other
Common Shares Issued Subsequent
to January 31, 2017, 552,339,556 shares of its common stock: 94,324,638 shares for cash of $91,810; 12,298,246 shares for services
valued at $234,404; 37,000,000 shares in settlement of debt of $28,682; 440,000 shares in settlement of accrued expenses of $44,000;
2,916,680 in payment of common stock payable of $291,668, 353,359,992 shares in the cashless exercise of warrants, and 52,000,000
shares in settlement of debt of $723,641. April
19, 2017 Convertible Note Effective
April 19, 2017, we issued and delivered to JSJ Investments, Inc. a 12% convertible note in the principal amount of $145,000. The
note was issued at a discount, resulting in our receipt of $138,000. We can redeem the note at any time prior to 90 days from
the issuance date at a redemption price of 120% plus accrued interest. The redemption price thereafter increases to 125%, plus
accrued interest, until the 120th day from issuance. The note is due and payable on the 180th day after issuance at a redemption
price of 150% plus accrued interest. The holder of the note, at its option, may convert the unpaid principal balance of, and accrued
interest on, the note into shares of our common stock at a 40% discount from the lowest trading price during the 20 days prior
to conversion. Prior to the 180th day after issuance, the conversion price cannot be less than a floor of $.03 per share of common
stock. The note also contains penalty provisions in the event of our default in repayment of the note (if not converted by the
holder into shares of common stock) after 180 days from issuance. May
15, 2017 Convertible Redeemable Note Effective
May 15, 2017, we issued and delivered to Eagle Equities LLC an 8% convertible redeemable note in the principal amount of $115,000.
The note was issued at a discount, resulting in our receipt of $105,000. We can redeem the note at any time prior to 90 days from
the issuance date at a redemption price of 125% plus accrued interest. The redemption price thereafter increases to 135%, plus
accrued interest, until the 120th day from issuance and to150%, plus accrued interest, until the 180th day from issuance. The
note is due and payable on May 15, 2018. During the first 6 months the note is in effect, the holder of the note, at its option,
may convert the unpaid principal balance of, and accrued interest on, the note into shares of our common stock at a fixed price
of $0.03 per share. Beginning the 6 month anniversary of the note, the holder of the note, at is option, may convert the unpaid
principal of, and accrued interest on, the note into shares of our common stock a 40% discount from the average of the three lowest
trading prices during the 25 days prior to conversion. The note also contains penalty provisions in the event of our default in
repayment of the note (if not converted by the holder into shares of common stock) after 180 days from issuance. May
16, 2017 Convertible Redeemable Note Effective
May 16, 2017, we issued and delivered to Crown Bridge Partners, LLC an 8% convertible redeemable note in the principal amount
of $60,000. The note was issued at a discount, resulting in our receipt of $54,000. The note is due and payable on May 16, 2018.
The other terms of the note are identical to the terms of the May 15, 2017 convertible redeemable note. May
24, 2017 Convertible Redeemable Note Effective
May 24, 2017, we issued and delivered to GS Capital Partners, LLC an 8% convertible note in the principal amount of $173,000.
The note was issued at a discount, resulting in our receipt of $158,000. We can redeem the note at any time prior to 60 days from
the issuance date at a redemption price of 118% plus accrued interest. The redemption price thereafter increases to 125%, plus
accrued interest, until the 120thday from issuance and then to 133%, plus accrued interest, until the 180th day from issuance.
The note cannot be prepaid after the 180th day after issuance. The holder of the note, at its option, may convert the unpaid principal
balance of, and accrued interest on, the note into shares of our common stock at a 40% discount from the lowest trading price
during the 20 days prior to conversion. Prior to the 180th day after issuance, the conversion price cannot be less than a floor
of $.03 per share of common stock. The note also contains penalty provisions in the event of our default in repayment of the note
(if not converted by the holder into shares of common stock). June
12, 2017 Equity Purchase Agreement On
June 12, 2017, we entered into an Equity Purchase Agreement with Crown Bridge Partners, LLC (“Crown Bridge”). Pursuant
to the terms of the Equity Purchase Agreement, Crown Bridge has committed to purchase up to $3,000,000 of our common stock for
a period of up to 24 months commencing upon the effectiveness of a registration statement covering the resale of shares issuable
to Crown Bridge under the Equity Purchase Agreement. The Equity Purchase Agreement allows us to deliver a put notice to Crown
Bridge stating the dollar amount of common stock that we intend to sell to Crown Bridge on the date specified in the put notice.
The amount of each put notice is limited to a formula that is equal to the lesser of (i) $100,000 or (ii) 150% of the average
dollar value of the trading volume of our stock, measured at the lowest price during the trading period, for the seven days prior
to the purchase of shares by Crown Bridge. The purchase price of shares issued in respect of each put notice is 80% of the average
of the three lowest trading prices in the seven trading days immediately preceding the date on which the Company exercises its
put right. We are required to file a registration statement with the SEC on Form S-1 within 45 days of the date of the Equity
Purchase Agreement covering the resale of shares to be issued under such agreement and to use our best efforts to cause the registration
statement to become effective within 90 days of such date. In
connection with the Equity Purchase Agreement, we issued to Crown Bridge, as a commitment fee, an $80,000 convertible promissory
note which matures on December 12, 2017. The note bears interest at a rate of 8% per annum. We are entitled to redeem the note
at a redemption price of 125% plus accrued interest during the first 90 days after issuance. The redemption price then increases
to 135% until the 120th day after issuance and then increases to 150% until the 180th day after issuance, after which the date
the note may not be redeemed. If the note is not redeemed or we otherwise default thereunder, Crown Bridge may convert the unpaid
balance into shares of our Class A common stock at a conversion price equal to the lesser of (i) the closing price of our Class
A common stock on the issuance date of the note or (ii) 60% of the average of the three lowest trading prices during the 25-day
period prior to the notice of conversion. | In
accordance with ASC 855-10, all subsequent events have been reported through the filing date as set forth below. Amendment
of Articles of Incorporation As
of November 29, 2016, the Company amended its articles of incorporation to increase its authorized common shares to 3,000,000,000
shares. Conversion
of Notes Payable in Default On
October 9, 2014, the convertible notes payable in default of $1,650,000, $120,000 and $180,000 (Note 7) were assigned to The Maple
Gas Corporation, a related party. On May 18, 2015, The Maple Gas Corporation converted the notes into 194,999,999 common shares
of the Company at $0.01 per share. The issuance of the common shares to Maple Structure Holdings was approved by the CompanyÂ’s
Board of Directors Resolution dated May 18, 2015. On
May 2, 2016, the Company issued a total of 194,999,999 shares of its common stock pursuant to the conversion of notes payable
in default (see Note 7). Private
Placement As
the Company continues to expand its business and implement its business strategy, its current monthly cash flow requirements will
exceed its near term cash flow from operations. In order to fund its development costs, the Company initiated in fiscal year 2016
a private placement to qualified investors for cash and services. Through the date of the filing of this report, $118,230 cash
and $60,000 in services had been received, including $49,200 cash from related parties, for a total of 41,784,320 common shares
of the Company and a total of 43,025,313 warrants. The warrants entitle the investors to purchase common shares at exercise prices
of $0.0001 and $0.01 per share through March 1, 2022. Of the common shares issued, 1,096,397 shares were issued in July 2016,
27,740,123 shares were issued in December 2016 and 12,947,500 shares were issued in January 2017. Settlement
Agreement and Stipulation On
October 28, 2016, MMEX Resources Corporation (the “Company) entered into a Settlement Agreement and Stipulation (the “Settlement
Agreement”) with Rockwell Capital Partners, Inc. (“RCP”). Pursuant to the Settlement Agreement, as amended,
RCP has purchased certain outstanding payables between the Company and designated vendors totaling $109,391 (the “Payables”
or “Claims”) and will exchange the portion of such Payables assigned for a Settlement Amount payable in common shares
of the Company. In
settlement of the Claims, the Company shall issue and deliver to RCP, in one or more tranches as necessary, shares of the CompanyÂ’s
common stock (“Common Stock”), subject to adjustment and ownership limitations as set forth in the Settlement Agreement,
sufficient to satisfy the Claims amount at a 50% discount to market based on the market price during the valuation period as defined
in the Settlement Agreement. The Company also issued 7,000,000 shares of Common Stock as a settlement fee on October 31, 2016. On
October 28, 2016, a circuit court in Florida issued an order confirming the fairness of the terms of the Settlement Agreement
within the meaning of exemption from registration provided by Section 3(a) (10) of the Securities Act of 1933. The
Company issued the following shares of its common stock to RCP in settlement of Claims: 10,000,000 shares on November 3, 2016,
15,000,000 shares on November 4, 2016, 18,000,000 shares on November 10, 2016, 18,000,000 shares on November 16, 2016, 14,000,000
shares on November 21, 2016, 22,000,000 shares on November 28, 2016, 22,000,000 shares on November 30, 2016, 25,000,000 shares
on December 5, 2016, 25,000,000 shares on December 7, 2016, 27,000,000 shares on January 4, 2017, 28,000,000 shares on January
6, 2017, 29,000,000 shares on January 10, 2017 and 30,000,000 shares on January 11, 2017. Other
Subsequent Events As of June
29, 2016, the Board of Directors executed a Board Resolution that the Directors of the Company may be two directors pursuant to
the By-Laws of the Company. As of June 29, 2016, Nabil Katabi resigned as a director of the Company. |
