SUBSEQUENT EVENTS |
3 Months Ended |
|---|---|
Apr. 30, 2016 | |
| SUBSEQUENT EVENTS | |
| SUBSEQUENT EVENTS | 9. SUBSEQUENT EVENTS
The Company had retained TESO Communications as its Investor Relations and Public Relations manager and under the agreement the Company may pay the invoice with cash or by issuing shares against the invoices submitted. The Directors opted to issue shares before the end of the initial agreement period of January 16, 2015 but the same were not yet issued. The agreement represented a cash payment of $25,000 or the issuance of 50,000 restricted common shares at the completion of the agreement which has been extended to May 15, 2016 has now ended and the company awaits their final invoice to complete matters.
As part of an agreement with Investors, the company retained legal counsel and prepared an S-1 filing outlining the details of the agreement for consideration and approval of the Securities and Exchange Commission (SEC) in May. It has come to the attention of the directors recently that the Company may not complete the S1 filing process without paying substantial fees to the OTC Markets to move up to a listing on OTCQB Markets. This along with correspondence from the SEC, has the directors considering setting aside the application for the next few months and possibly abandoning it completely. A board decision on this matter is further complicated by the decision of our counsel to end their security practice in June of this year.
The Company also filed an 8-K, in May, noting a share buyback program adopted by the directors to help offset future share dilution stemming from borrowing activities. The directors believed it is important to demonstrate confidence in the strength of our business plan and to reinforce our ongoing commitment to improving shareholder returns.
The Company has retained three unrelated parties as Consultants to help develop investor awareness in the Company through varied campaigns that revolve around contacting known sophisticated investors through media outlets, newsletters, emails and direct telephone calls. The consultants are compensated in combination of cash and restricted common shares. Shares were issued in May and June and will be fully reported next quarter. In May and June, the Company issued 8,283,333 shares of its common stock for services rendered by unrelated third parties.
In May, the Company agreed to allow a non-related party to sell their debt representing a promissory note for $25,000 due for repayment on July 1, 2016. This will reduce the Companys overall debt and help offset new loans.
In accordance with ASC 855, Subsequent Events, the Company has evaluated events that occurred subsequent to the balance sheet date through the date of available issuance of these unaudited condensed financial statements. The Company determined that other than as disclosed above, there were no material reportable subsequent events to be disclosed. |