Item 3.03 Material Modification to Rights of Security Holders
On January 21, 2021, a third-party lender converted $29,478.58 principal,
interest and penalties related to a November 14, 2019 loan made to FOMO CORP.
("FOMO") into 66,996,773 common shares, which fully retires the debenture. As a
result, the third-party lender is required to release an estimated two billion
four hundred million (2,400,000,000) common shares previously held as collateral
against a series of loans made to the Company since 2018, all of which have now
been extinguished/retired. For clarity, none of those reserve shares were ever
issued or outstanding. The reserve release has no bearing on the float of the
Company's stock, though the action does substantially reduce the Company's need
to change its share structure through corporate action(s) as it seeks to finance
organic growth and announced planned acquisitions. As of January 22, 2021, the
Company has only one debenture remaining able to be converted under Rule 144
into free trading stock. This loan has principal amount of $2,286 and estimated
interest and penalties of approximately $1,500, meaning it is convertible into
less than eight (8) million common shares based on executed loan documents and
their terms and conditions. Management has contacted the lender to obtain an
exact balance on the loan plus accrued interest and penalties, effect a
conversion of the loan, or repurchase the loan to eradicate the last remaining
amount of "aged variable debt" from the Company's balance sheet.
Item 9.01. Exhibits
(a) Exhibits. The following exhibit is filed with this Current Report on Form
8-K:
Exhibit No. Description
10.1 FOMO CORP. PowerUp Debenture - November 14, 2019*
10.2 FOMO CORP. Tri-Bridge Debenture - March 15, 2019**
*Incorporated by reference to Exhibit 10.17 of Form 10-K for 2019 filed December
7, 2020.
**Incorporated by reference to Exhibit 10.13 of Form 10-K for 2019 filed
December 7, 2020.
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