6b. At the end of 2020, TQF issued preferred shares in the amount of $ 15,000 to one key

employee, Gary Roberts. The shares have a rate of return of 4% per annum and are

cumulative, redeemable and retractable in two years' time at face value plus dividends in

arrears

7.Ray used the money from issuing preferred share (as stated in 6b above) to help finance a $

120,000 acquisition of common shares in Spring Farm (SF) that produces blueberry,

strawberry, peach and cherry. TQF will now own 25% of SF. SF will be a primary supplier of

those fruits mentioned above for TQF's new product line. Ray explained: "this vertical

integration is critical for the growth of our business! Otherwise I will have to pay about $

10,000 more if I buy from other suppliers. This deal is a big help with cash flow, and it also

helps us to secure the supply which can be volatile depending on the weather."

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