WHOAAAAAAAAAA NELLIE
In January of 2004, the Company entered into an agreement to acquire 100% of the common stock of Vasjar Trading Ltd. ("Vasjar"), a British Virgin Islands corporation.
Vasjar has five Barbados corporate subsidiaries, one of which holds intellectual property rights, including technology rights to the DCR-900 system originally owned by Flowray.
On April 29, 2004, the Company tendered to Vasjar's two shareholders 2,400,000 shares of its common stock as a proposed settlement of the initial share delivery provisions for the Vasjar acquisition. Resolution of both of the shareholders situations has occurred.
As part of the agreement the Company also consented to issue an aggregate of up to 2,600,000 shares additional stock over the years 2005-2007 based on the achievement of Vasjar's minimum annual sales volumes during the years 2004-2006. In the event that earned shares are not timely delivered, the agreement provides for "penalty" shares to be issued and also provides Vasjar's two shareholders with the right to rescind the agreement and receive back their original shares. Wescorp was not able to deliver free-trading shares on
F-10
April 1, 2005, and so the Company will be liable for to pay the Vasjar shareholders an additional 48,000 Wescorp shares for each month that the shares are not delivered, starting with the month of April 2005. |
