Investment in Partnership

6 Months Ended

May 31, 2016

5. Investment in Partnership

On April 15, 2016, the Company and its partner, James Stafford, a Texas resident (“Stafford”) (collectively the “Members”), organized a joint venture entity, AeroLift Express LLC (“AeroLift”), to develop and launch integrated service and solution offerings utilizing the latest advancements in the UAV industry.

The material terms of the joint venture agreement between the Members are as follows:

	●	The Company will contribute to AeroLift startup financing in periodic amounts, the total of which will not exceed $500,000. Such financing will be made available to AeroLift in monthly installments of $25,000 for the first 3 months from the date of execution of the joint venture agreement.

	●	AeroLift will set aside a reserve fund, for operations, payroll, expansion, and employee bonuses from AeroLift’s after-tax profit. The ratio of the reserve fund to AeroLift’s after-tax profit will not be lower than 10% and may be a higher percentage with unanimous approval of the Members. The distributed profit, which is the profit after above funds have been allocated, will be distributed to Members, in proportion to their member interests.

The carrying value of $8,384 at May 31, 2016 (November 30, 2015 - $Nil) includes $10,000 in advances plus the Company’s share of the cumulative net loss of AeroLift of $1,616 (November 30, 2015 - $Nil).

Summary of financial information of AeroLift

For the period ended May 31,

	2016		2015

Office expenses	$	232	$	-
Travel		3,000		-
Net loss for the period	$	3,232	$	-

Valmie Resources, Inc. 10-Q