Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Subsequent Events

v3.19.1
Note 10 - Subsequent Events
3 Months Ended
Mar. 31, 2019
Notes  
Note 10 - Subsequent Events

NOTE 10 - SUBSEQUENT EVENTS

 

LOAN PAYABLE, RELATED PARTIES

 

Christopher Maggiore

 

During the period from April 1, 2019 to May 13, 2019, the Company repaid Mr. Maggiore, a director and a significant shareholder of the Company (see Note 5 Loans Payable – Related Parties), $9,129, leaving a total advanced of $176,405.

 

CONVERTIBLE DEBT

 

HEP Investments, LLC – Related Party

 

Debt Conversion Agreement

 

The Company and the Lender entered a Debt Conversion Agreement dated April 5, 2019 whereby the Lender agrees, upon the sale of at least $25 million in common shares to one or more third party investors, to convert at least $16.1 million of the Convertible Notes into the Company’s common stock. Pursuant to the terms of the Convertible Notes, $16.1 million of Convertible Notes would convert into 161 million shares of the Company’s common stock.

 

STOCKHOLDERS’ DEFICIENCY

 

Increase in Authorized Shares

 

On May 1, 2019, the shareholders of the Company voted for approval and adoption of an amendment to the Articles of Incorporation, as amended, to increase the number of authorized shares of common stock from 700,000,000 shares to 1,200,000,000 shares. The Certificate of Amendment to the Articles of Incorporation has been filed with the Secretary of State of Nevada.

 

Stock Issuances

 

During the period April 1, 2019 to May 13, 2019, the Company issued 6,000,000 shares of common stock at $.10 per share for cash of $600,000.

 

Supply Chain Consultant

 

On May 2, 2019, the Board of Directors authorized the issuance a cashless warrant with a five-year term to purchase five million (5,000,000) shares of the Company’s common stock at an exercise price of $0.10 per share to the Consultant.