Item 1.01 Entry into a Material Definitive Agreement.
Effective at a date to be determined in May, 2022 the Company will begin an
offering of its securities under Rule 506(c) of Regulation D, as promulgated by
the
The Company will offer for sale the following securities, in a maximum combined
amount of
1. 2,250,000 Common Voting Shares at
2. 2,000 Series C Convertible Bonds at
offered.
3. 2,000 Series D Convertible Bonds at
offered.
4. 3,000 Series E Convertible Bonds at
offered.
This Offering will be made on a "best efforts" basis with no minimum.
The Company has entered into a "Lead Broker Engagement Agreement" with
CIM is an independent investment bank that serves micro-cap and small-cap
companies by providing capital raising solutions and also merger and acquisition
services for companies seeking growth capital or services. CIM also caters to
individual investors providing comprehensive brokerage and money management
solutions.
1. Scope. CIM will act as the placement agent for up to
the Company's securities by soliciting accredited investors and as the
managing broker. The Company has engaged CIM to consult with and advise the
Company with respect to the sale of these Securities and anything incidental
thereto, as directed by the Company.
2. Exclusivity Period. The sale of the Securities described in this Memorandum
shall be handled exclusively by CIM. The exclusivity period shall expire after the first three (3) months ("Term") from the date of the offering, or terminate upon ten days (10) written notice by either party. After the exclusive term, the Agreement shall become non-exclusive and continue on a "month-to-month" basis until either Party cancels.
3. Fees and Compensation. The Company has agreed to pay CIM the following fee and
other compensation: success fee, transaction success fees, placement agent
warrants, advisory fee, expense reimbursement, escrow account, and finder's
fees. The Company agrees to compensate CIM 7% of CIM placed Securities, 3% for
securities placed by outside brokers and managed by CIM, and 1% for
investments sourced by Motos America. CIM will receive warrants based on the
total amount of shares associated with the offering as placed either directly
through CIM and/or their affiliated brokers/dealers. In lieu of exercising
their warrants, CIM may choose to receive common shares equal to the
difference between the strike price and the current fair market value as of a
particular date. 2
Additionally, Shares may be purchased or sold by officers, directors, employees and affiliates of the Company, which persons will not receive any compensation based on the success of the offering.
The following table sets forth the current equity capitalization of the Company, and the capitalization of the Company on a fully diluted basis, i.e. accounting for the Maximum Offering, as well as the conversion of all debt into equity, as well as the exercise of all warrants and options that could be outstanding if the 506c offering is fully subscribed.
Common Shares Current % % Fully Diluted Current Equity Structure Public Holders/Investors(1) 1,283,300 19.7% 9.63% Vance Harrison (2) 5,226,700 80.3% 39.22% Sub- Current Shares 6,510,000 48.85% Dilutive Events Employee Stock Options (3) 1,500,000 11.26%
New 506c Offering (Max Offering)
Common Shares 1,500,000 11.26% Shares Underlying C Bonds 500,000 3.75% Shares Underlying D Bonds 456,000 3.42% Shares Underlying E Bonds 466,200 3.50% Underwriter Warrant 245,000 1.84%
Prior Offering
Shares Underlying A Bonds 420,000 3.15% Shares Underlying B Bonds 280,000 2.10% Shares Underlying A Debentures 749,999 5.63% Shares Underlying A Warrants 700,000 5.25% Subtotal Dilutive Events 6,817,199 51.15%
Total 13,327,199 100.00%
(1) No single holder in this group owns 5% or more of common shares.
(2) Includes conversion of preferred shares
(3) Entire authorized pool, vesting over 1 - 5 years, no voting rights until options are exercised.
A copy of the Lead Broker Engagement Agreement with
3 CORPORATE HISTORY General
The Company was incorporated under the laws of the
From the date of incorporation until the summer of 2017, the Company was an
exploration stage company, engaged in the acquisition and exploration of mineral
properties. The Company was also a "shell company" with no meaningful assets or
operations that attempted to identify and merge with an operating company. The
Company's principal business address was in
Effective
Upon the consummation of the sale the executive officers and directors resigned from all of their positions with the Company, and Messrs. Wee and Wong were appointed to take their place.
Effective
Effective
The Company was never able to profitably operate the MTT business. The Company
incurred a net operating loss of
On
On
4
After this transaction, Mr.
Pursuant to the terms of the Stock Purchase Agreement, the Board appointed the following individuals to serve in the offices set forth next to their names:
Name Position
All previous board members resigned from their positions with the Company.
In November, 2021 the Company filed Articles of Amendment with the
The Company considers itself as a lifestyle company. The Company buys and
operates BMW Motorcycles, Triumph Motorcycles and Ducati Motorcycles
dealerships. These brands are not sold as practical transportation; instead they
are luxury items that buyers consume as part of a more exclusive lifestyle
choice. In the view of the Company, this industry is ripe for consolidation.
This industry disruption is similar to what has occurred in the automotive
dealership niche. The Company believes that consolidation in this niche will
invite the same advantages of scale associated with auto-dealer consolidations,
namely better operating results flowing from professional management, branding
and marketing opportunities, and volume purchasing. As of the date of the
Memorandum, the Company has acquired 4 dealerships, and has a Letter of Intent
to acquire 3 more. In addition, the Company is in the process of developing a
new "open point" dealership in
Since
In
On
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