Item 1.01 Entry into a Material Definitive Agreement.
The disclosure set forth below under Item 2.01 of this Current Report on Form
8-K (this "Report") is incorporated by reference into this Item 1.01.
Item 2.01 Completion of Acquisition or Disposition of Assets.
On August 12, 2021, PhoneBrasil International, Inc. (the "Company") entered into
a Share Exchange Agreement (the "Exchange Agreement") with Mikab Corporation, a
New Jersey corporation ("Mikab"), pursuant to which the Mikab stockholders
exchanged their shares of Mikab for shares of Convertible Preferred Stock (the
"Preferred Stock") of the Company (the "Transaction"). Prior to the closing of
the Transaction, Mikab entered into a Business Development Agreement (the
"Business Development Agreement") with Novation Enterprises, LLC ("Novation")
pursuant to which Mikab agreed to issue shares of its common stock to Novation.
Pursuant to the terms of the Exchange Agreement, the Transaction will take place
in two steps: (1) Mikab stockholders are issued 9,000,000 shares of presently
outstanding Preferred Stock of the Company constituting approximately 82% of the
Company's outstanding Common Stock on an as-converted basis in exchange for
their Mikab Common Stock, and (2) following the increase in authorized Common
Stock on or about August 27, 2021, the Company will reclassify the Preferred
Stock by exchanging it for newly designated Series A Convertible Preferred Stock
(the "Series A"). As part of the reclassification, the former Mikab stockholders
will receive 2,969,722.3 shares of Series A representing 94.2% of the Company's
outstanding Common Stock on an as-converted basis without including the Common
Stock underlying the Warrants described in "Transactions with Related Persons."
The Preferred Stock issued at the closing will be cancelled. Each share of
Series A will be convertible into 500 shares of Common Stock. The Series A will
vote with the Common Stock on an as-converted basis until converted.
The Company will file an Amended and Restated Certificate of Incorporation as
soon as possible on or after August 27, 2021, which is more than 20 days after
the mailing of the Information Statement on Schedule 14C pursuant to rules of
the Securities and Exchange Commission (the "SEC"), to increase its authorized
Common Stock from 300,000,000 shares to 1,650,000,000 shares (the "Charter
Amendment"). At that time, it will also file the necessary Certificate of
Designation for the Series A Preferred Stock referred to in this Report.
The Company also intends to file an application with the Financial Industry
Regulatory Authority ("FINRA") to (i) effect a reverse stock split in the range
of one-for-25 to one-for-100 (the "Reverse Split"), with the exact amount to be
established by the Company's Board of Directors (the "Board"), and (ii) change
the Company's name to AmeriCrew Inc. Following that approval, the Company also
will immediately reincorporate in the State of Delaware.
Prior to execution of the Exchange Agreement, DR Shell LLC, the Company's then
principal stockholder (the "Former Principal Stockholder") cancelled 9 million
shares of its Preferred Stock and the Company reissued those shares to the Mikab
stockholders in the first step of the Transaction described above.
The Former Principal Stockholder retained 1,000,000 shares of Preferred Stock
which it will exchange as part of the reclassification for its proportional
number of Series A shares or approximately 4% of the Company's Common Stock on
an as-converted, post-Transaction basis, which together with its 18,000,000
shares of Common Stock will constitute 5.1% of the Company's outstanding Common
Stock without including the Common Stock underlying the Warrants described in
"Transactions with Related Persons."
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The terms of the Exchange Agreement provide that the Company will pay the Former
Principal Stockholder $300,000 upon the earlier of completing a financing or
December 31, 2021.
Further, subject to compliance with Rule 14f-1 under the Securities Exchange Act
of 1934 (the "Exchange Act"), under the Exchange Agreement the Company will
expand its Board to five persons and appoint the following as members of the
Board: (i) four individuals designated by Mikab, and (ii) one individual
designated by the Company.
Mikab expects to acquire selected assets of Novation within 60 days. If it does
complete this acquisition, it will pay Novation $1,300,000, which Novation will
use to terminate a royalty agreement. Regardless, the Preferred Stock issued to
Novation or its designees will not be cancelled.
The Exchange Agreement contained customary indemnification provisions with
respect to liabilities and losses arising from a material breach of a
representation or warranty contained in the Exchange Agreement.
The foregoing description of the Exchange Agreement and the related transactions
consummated and contemplated thereby is qualified in its entirety by the full
. . .
Item 3.02 Unregistered Sales of Equity Securities.
On August 12, 2021, the Company consummated the Transaction under the Exchange
Agreement, whereby 9,000,000 shares of the Company's Preferred Stock were issued
to the Mikab stockholders and the Company agreed to subsequently cancel the
existing Preferred Stock and issue a total of 3,094,503.4 shares of Series A to
the former Mikab stockholders and the Former Principal Stockholder as part of a
reclassification. The disclosure in Item 1.01 is incorporated herein by
reference. The issuances of the foregoing securities were exempt from
registration pursuant to Section 4(a)(2) of the Securities Act of 1933 and Rule
506(b) promulgated thereunder.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Pursuant to the Exchange Agreement, on August 12, 2021 Mr. Ross DiMaggio
resigned as Chief Executive Officer of the Company, and each of Messrs. P Kelley
Dunne, Brian Weis, Earl Scott and Keith Eckert were appointed as officers of the
Company. Further, Mr. P. Kelly Dunne was appointed a director of the Company
and, pending compliance with Rule 14f-1, each of Messrs. Brian Weis, Earl Scott
and Jose Mercado were also appointed as directors of the Company. The
biographical information and employment terms for each of these individuals is
set forth in Item 2.01 under "Directors and Officers" which is incorporated
herein by reference.
Item 5.06 Change in Shell Company Status.
As a result of the closing of the Transaction described in Items 1.01 and 2.01
of this Report, which description is incorporated by reference in this Item 5.06
of this Report K, the Company ceased being a shell company as such term is
defined in Rule 12b-2 under the Exchange Act.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On July 23, 2021 the Company's Board and the Former Principal Stockholder acted
by written consent in lieu of a meeting to ratify prior charter amendments and
to approve the Charter Amendment. More information on these matters is available
on our Definitive Information Statement on Form 14C filed with the SEC on August
3, 2021.
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Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Filed or
Incorporated by Reference Furnished
Exhibit # Exhibit Description Form Date Number Herewith
3.1 Certificate of Incorporation, as 10-12G 6/12/20 3.1
amended
3.1(b) Certificate of Correction filed January 10-K 3/16/21 3.1(b)
27, 2021
3.2 Amended and Restated Bylaws 10-12G 6/12/20 3.2
10.1 Form of Share Exchange Agreement* Filed
10.2 Amendment to Letter of Intent dated May 8-K 6/4/21 10.1
28, 2021
10.3 Stock Purchase Agreement dated December 10-K 3/16/21 10.1
7, 2020
10.4 Letter Agreement dated December 9, 10-K 3/16/21 10.2
2020
10.5 Promissory Note issued to Custodian 10-12G/A 7/9/20 10.1
Ventures, LLC
23.1 Consent of Independent Registered Public Filed
Accounting Firm
99.1 Audited Financial Statements of Mikab Filed
Corporation for the Fiscal Years ended
December 31, 2020 and 2019
99.2 Unaudited Financial Statements of Mikab Filed
Corporation for the Fiscal Quarter ended
March 31, 2021
99.3 Pro Forma Financial Information of Mikab Filed
Corporation
104 Cover Page Interactive Data File -- the
cover page XBRL tags are embedded within
the Inline XBRL document
* Exhibits and/or Schedules have been omitted. The Company hereby agrees to
furnish to the Staff of the Securities and Exchange Commission upon request any
omitted information.
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