Real Estate Contacts Inc. Just Filed Its Quarterly Report: 12.            Subse...

12.            Subsequent Events


On April 12, 2017, the Company and one of its investors agreed to cancel and retire the remaining principal and interest on a convertible note payable in the amount of $76,777.


On April 17, 2017, the Company paid $14,000 against notes payable to the Company’s Chief Executive Officer.


On April 21, 2017, the Company cancelled and terminated the Asset Purchase Agreement with Patriot Bioenergy Corporation that was originally executed on January 4, 2017.  REAC terminated the APA due to Patriot’s refusal to provide any financial information to the Company as required by the Asset Purchase Agreement. (see Note 5)


On May 5, 2017, the Company entered into a Securities Purchase Agreement (“SPA”) with an institutional accredited investor (“Investor”) pursuant to which Investor invested $165,000 (the “Financing”). On the Closing Date, the Company issued to Investor a Convertible Promissory Note (the “Note”) in the principal amount of $165,000. There is no material relationship between the Company or its affiliates and the Investor and the Company paid no commissions or other placement agent fees.


The Note matures in 10 months and is convertible into shares of the Company’s common stock at a conversion price equal to 50% of the lowest trading price per share during the previous twenty-five (25) trading days. The Company may prepay the Note within 90 days by payment to Investor of 135% of the outstanding principal, interest and other amounts then due under the Note or within 180 days by payment to Investor of 150% of the outstanding principal, interest and other amounts then due under the Note.  After 180 days, the Company will have no right of prepayment.  The Company is currently researching the accounting for this transaction.


Pursuant to the terms of the SPA and the Note, the Company is required to reserve and keep available out of its authorized and unissued shares of common stock a number of shares of common stock at least equal to three and a half (3.5) times the number of shares issuable on full conversion of the Note.


On May 5, 2017, the Company issued 1,153,000 shares of its common as consideration to the Investor for providing the financing. The stock was valued at $0.08 per share which was the closing price on the date of issuance.


The above information was disclosed in a filing to the SEC. To see the filing, click here.

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