Oops! Sorry, I forgot about the BFIT connection. T
Post# of 75421
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Posted On: 07/10/2018 8:03:43 PM
Re: adirondackhi #45259
Oops! Sorry, I forgot about the BFIT connection. The proceeds are apparently for the loan of $80,000 to BFIT Brands, LLC, or the purchase of BFIT Brands, LLC, assuming they used cash on hand to provide for the loan.
After looking back at the 8-K received on the 2nd, an acquisition could indeed be what the sale will be applied to, but they'll get a return either way:
Note and Exclusive Option Agreement with BFIT Brands, LLC .
On June 29, 2018, we lent the sum of $80,000 to BFIT Brands, LLC (“BFIT”) under a Secured Promissory Note and Exclusive Option Agreement (the “Note”). BFIT markets and distributes FitWhey, a water-based protein drink combined with caffeine and a vitamin B pack. The Note bears interest at a rate of 8% per year and is due in full on or before March 29, 2019. BFIT’s obligations under the Note are secured by a lien on all of BFIT’s inventory and all proceeds thereof. Under the Note, BFIT granted us the exclusive option to purchase all assets of the company at any time during the next three months. In the event that we exercise the option and elect to acquire all of BFIT’s assets, the purchase price will be $230,000, consisting of:
a. $75,000 in cash, to be paid to BFIT in installments following the effective date of the asset purchase, payable on the 15th day the month following the end of each of our fiscal quarters. Each installment payment shall be equal to five percent (5%) of the net sales revenue generated by the BFIT business during the applicable fiscal quarter;
b. $75,000-worth of our common stock to be issued on the effective date of the asset purchase. The shares shall be valued using the closing share price for our common stock on the effective date of the asset sale;
c. Forgiveness of the $80,000 debt owing under the Note.
After looking back at the 8-K received on the 2nd, an acquisition could indeed be what the sale will be applied to, but they'll get a return either way:
Note and Exclusive Option Agreement with BFIT Brands, LLC .
On June 29, 2018, we lent the sum of $80,000 to BFIT Brands, LLC (“BFIT”) under a Secured Promissory Note and Exclusive Option Agreement (the “Note”). BFIT markets and distributes FitWhey, a water-based protein drink combined with caffeine and a vitamin B pack. The Note bears interest at a rate of 8% per year and is due in full on or before March 29, 2019. BFIT’s obligations under the Note are secured by a lien on all of BFIT’s inventory and all proceeds thereof. Under the Note, BFIT granted us the exclusive option to purchase all assets of the company at any time during the next three months. In the event that we exercise the option and elect to acquire all of BFIT’s assets, the purchase price will be $230,000, consisting of:
a. $75,000 in cash, to be paid to BFIT in installments following the effective date of the asset purchase, payable on the 15th day the month following the end of each of our fiscal quarters. Each installment payment shall be equal to five percent (5%) of the net sales revenue generated by the BFIT business during the applicable fiscal quarter;
b. $75,000-worth of our common stock to be issued on the effective date of the asset purchase. The shares shall be valued using the closing share price for our common stock on the effective date of the asset sale;
c. Forgiveness of the $80,000 debt owing under the Note.
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