Klusman Family Holdings, LLC acquired Chee Corp. (OTCPK:ECRP) for $78.1 million in a reverse merger transaction on November 6, 2020. The consideration comprised of a payment of $1.5 million with $1 million to be paid to Aaron Klusman, sole shareholder of Klusman Family Holdings, LLC, out of the future revenues of Chee Corp. as revenues permit, and the balance of $0.5 million to be paid first out of any future capital raise, and if there is no further capital raise then out revenues of Chee Corps as revenues permit. In addition, Chee Corp. issued 10.95 million shares of the restricted common stock of Chee Corp. to Aaron Klusman.
Klusman Family Holdings, LLC cancelled the acquisition of Chee Corp. (OTCPK:ECRP) in a reverse merger transaction on December 14, 2020. Consequently, the acquisition of assets has been cancelled, and the issuance of shares of common stock of Chee Corp. has been rescinded. Additionally, there are ongoing negotiations regarding entry into a binding letter of intent with terms that are substantially similar as the purchase agreement. Aaron Klusman has retained $0.05 million previously paid by Chee Corp. in connection with the terminated purchase agreement, which will be held as a non-refundable, non-interest bearing advance against the purchase price under the binding letter of intent currently under negotiation.