-Active Participation Investor-
biz.yahoo.com
"On Mach 31, 1999, the Company entered into a cancelable special services agreement with an unrelated active participation investor.
Pursuant to this agreement, the investor will provide various public relations and marketing services to the Company in exchange for the right to purchase 87,500,000 shares of the Company's stock for $1,000,000.
The purchase of these shares will occur in stages, at varying per share prices ranging from $.0025 to $.20 per share. At March 31, 1999, the shares associated with this agreement were recorded as subscribed common shares.
In accordance with the above agreement, upon collection of the subscription price for the first stage, 25,000,000 shares of common stock were issued.
For these shares, the $812,500 difference between the fair value of the stock at March 31, 1999 and its selling price has been recorded as stock promotion expense.
On or about September 1, 1999, the Company was de-listed from the OTC-BB.
Subsequently, the Company reduced the subscription price of the remaining 62,500,000 shares to $.005 per share.
In the accompanying financial statements the stock subscription receivable was adjusted to reflect the revised subscription price." |
