Item 1.01 Entry into a Material Definitive Agreement.
Securities Purchase Agreement. Effective December 15, 2020, we entered into a
securities purchase agreement (the "SPA") with EMA Financial, LLC ("EMA"),
pursuant to which EMA purchased a $58,600 face amount convertible promissory
note, with OID of $4,100, that bears interest at 10% per annum, with principal
and interest due September 15, 2021. We have the right to repay such convertible
promissory note at a premium ranging from 120% to 145% of the face amount. Such
convertible promissory note may be converted into shares of our common stock at
a conversion price equal to the lower of 60% of the market price of our common
stock on the date of issuance of such convertible promissory note and the date
of conversion, any time after June 15, 2020. The proceeds obtained were used to
pay operating expenses.
Asset Purchase Agreement. On December 21, 2020, we entered into an asset
purchase agreement (the "APA") with Raghorn Wholesale LLC, a Montana-based
consumer goods distributor, whereby we are to purchase certain assets from
Raghorn associated with approximately 200 retail locations for $200,000 in cash.
These assets became available for purchase, due to Raghorn's determination to
terminate its distribution business in such locations. The closing under the APA
is scheduled for January 31, 2021. While we expect to possess the funds required
for the closing, there is no assurance that such will be the case.
Item 3.02 Unregistered Sales of Equity Securities.
(a) Securities Sold. Effective December 15, 2020, we issued a $58,600 face
amount convertible promissory note, with OID of $4,100, to EMA, which
convertible promissory note bears interest at 10% per annum, with principal and
interest due September 15, 2021. We have the right to repay such convertible
promissory note at a premium ranging from 120% to 145% of the face amount. (b)
Underwriter or Other Purchasers. Such convertible promissory note was issued to
EMA Financial, LLC. (c) Consideration. Such convertible promissory note was
issued in consideration of a cash loan of $54,500. (d) Exemption from
Registration Claimed. These securities are exempt from registration under the
Securities Act of 1933, as amended, pursuant to the provisions of Section
4(a)(2) thereof. (e) Terms of Conversion or Exercise. Such convertible
promissory note may be converted into shares of our common stock at a conversion
price equal to the lower of 60% of the market price of our common stock on the
date of issuance of such convertible promissory note and the date of conversion,
any time after June 15, 2020.
Item 8.01 Other Events.
Effective December 16, 2020, MiteXstream, a biopesticide for which our
wholly-owned subsidiary, Black Bird Potentials, is the exclusive distributor in
the United States and Canada, was certified by the U.S. Environmental Protection
Agency ("EPA") (EPA Reg. Number: 95366-1).
In connection with such EPA certification of MiteXstream, we issued the press
release reproduced below:
* * * START PRESS RELEASE * * *
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
4.1 10% Convertible Promissory Note in favor of EMA Financial, LLC.
10.1 Securities Purchase Agreement between Registrant and EMA
Financial, LLC.
10.2 Asset Purchase Agreement between Big Sky American Dist., LLC, a
Subsidiary of Registrant, and Raghorn Wholesale, LLC.
3
© Edgar Online, source Glimpses