Quad M Solutions, Inc. cancelled the acquisition of iCan Benefit Group, LLC.
January 07, 2021
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Quad M Solutions, Inc. (OTCPK:MMMM) entered into a letter of intent to acquire iCan Benefit Group, LLC on August 12, 2020. Quad M Solutions signed a definitive agreement to acquire iCan Benefit Group on August 28, 2020. The proposed acquisition consideration is for common stock shares in Quad M Solutions. Quad M Solutions will issue 4% of the outstanding common shares of the Company at the time of acquisition. In addition, the Company will inject $17.5 million to pay off iCan's debt prior to the completion of the acquisition by September 29, 2020.
Quad M Solutions, Inc. (OTCPK:MMMM) cancelled the acquisition of iCan Benefit Group, LLC on January 8, 2021. The mutually agreed termination was the result of: (i) extensive due diligence efforts, including the Company auditing the financial statements of iCan Holdings, LLC and iCan Benefits Group, LLC and subsidiaries; (ii) the refusal by iCan creditors to accept in satisfaction of iCan’s debt the Company’s issuance of 1 million shares of newly authorized 7% Redeemable Preferred Stock having a stated value of $12.50 per share to iCan’s creditors; and (iii) the action by iCan’s creditors on December 31, 2020 under its agreement with iCan not to extend deadlines imposed on iCan to repay iCan’s debt which was originally due on September 29, 2020. Quad M Solutions, Inc. (OTCPK:MMMM) completed the acquisition of iCan Benefit Group, LLC for $12.7 millionon September 29, 2020. Quad M Solutions issued to iCan Benefit Group 4% of total outstanding common shares in exchange for 100% of iCan Benefit membership units and one million shares of Quad M Solutions's newly authorized 7% Cumulative Redeemable Preferred Stock having a stated value of $12.5 per share, representing $12.5 million to satisfy iCan Benefit debt. iCan Benefit has historically generated over $4.5 million of annual premium cashflows.
Quad M Solutions, Inc. is a holding company. The Company operates its business through its two operating subsidiaries, including NuAxess 2, Inc. (NuAxess) and OpenAxess, Inc. (OpenAxess). NuAxess is engaged in providing a spectrum of consulting and staffing business services related to employee benefits, insurance, and financial services. It offers its programs through platforms that include technology and sponsoring affordable medical health insurance plans and other employee benefit products and services. OpenAxess is a staffing business that developed its competitive partially self-insured medical plans to offer employees for their comprehensive medical insurance benefits replacing fully insured medical plans. The NuAxess Smart Healthcare Plan, which is its self-insured health plan includes wellness and prevention programs and employee health saving accounts, among other features. Its primary markets are small and mid-size group employees, sometimes referred to as the gig economy.
QUAD M SOLUTIONS, INC. 