Note 9 Other matters |
3 Months Ended |
|---|---|
Mar. 31, 2016 | |
| Other Matters [Abstract] | |
| Other Matters [Text Block] |
Note 9 Other matters
Legal fees relating to financing activities, blue sky registrations with states and other fund raising expenses were charged to additional paid in capital in the amount $14,065 for the Three Months ended March 31, 2016 and $58,616 during the year ended December 31, 2015.
Our business is affected by some seasonality but this is not a material concern of our Company. Most reduction in sales due to seasonality take place during the major winter holidays and the first quarter of the year. We adjust automatically to this effect by stretching our workloads and other activities into the slow periods and therefore have not been concerned by seasonality.
On March 15, 2015 the Company entered into a consulting contract with Adamas Fund, LLC (AFL), a Chicago based investment banking group providing for the issuance of a Regulation 144A bond offering that will be sold to QIBs (qualified institutional buyers) with a minimum raise of $5,000,000 USD on a best efforts basis. The bond will be sold by several broker dealers globally and will be used in the implementation of ABCO’s future growth plans and for future acquisitions. The ABCO bond will not require interest payments for years 1-3 and a low annual coupon rate of 6.5% for years 4-10 with a 10 year maturity date. The bond may be convertible into common stock under certain circumstances. Rule 144A Securities Act of 1933 provides an exemption from the registration requirements of the Securities Act of 1933 for certain private transactions of minimum $100,000 units of restricted securities to qualified investors which generally are large institutional investors that own at least $100 million in investable assets. AFL will receive an aggregate advisory fee of $130,000 in connection with the issuance of the bonds. The first $75,000 has been be paid by the issuance of 375,000 shares of registered common stock on or about November 19, 2015. The remaining $55,000 has been paid with $20,000 in cash, $1,000 which was paid in this reporting period and $19,000 paid April 7, 2016. The balance will be paid in cash or common stock at the Company’s option upon receipt of funds from the bonds.
|