Lot78, Inc. (OTCPK:LOTE) signed a letter of intent to acquire Compound Holdings, LLC on July 15, 2016. Lot78, Inc. (OTCPK:LOTE) entered into definitive Agreement to acquire Compound Holdings, LLC on July 18, 2016. David Schmid, the President of Compound Holdings LLC was elected as Chief Executive Officer of Lot78, Inc. The total consideration to be paid to Compound Holdings stockholders shall be issuance of 55 million restricted shares on a 55000 for 1 basis of LOTE common stock par value $0.001 per share to Compound Holdings, each outstanding membership unit of the Compound Holdings shall be converted into the right to receive a pro rata amount of LOTE shares, each outstanding warrant or other security convertible into or exercisable for Compound Holdings common stock shall be exchanged for or converted into convertible securities of LOTE. The transaction does not require any government or regulatory approval. The transaction is subject to approval of LOTE shareholders. The transaction is expected to close in third quarter of 2016. As of September 30, 2016, the transaction is expected to close in fourth quarter of 2016. Adam S. Tracy, Esq of Securities Compliance Group, Ltd. acted as legal advisor to Lot78, Inc.