Item 8.01 Other Events. 1. Letter ofMarch 22, 2021
On
The Cabinet Secretary further explained in his Letter that the
Nonetheless the Cabinet Secretary further stated in the Letter that the Project is not being terminated but put on hold for a certain period of time. The Cabinet Secretary did not provide any assurances with respect to if or when the Project will proceed as originally intended and we have not received any additional communication from the Cabinet Secretary regarding the status of the Project or whether the Project will be implemented, if at all.
In light of the statements made by the Cabinet Secretary in the unexpected
Letter that we received, there is a clear risk that the Project (that we had
hoped would be undertaken in
In that context, we are reminded of the inherent significant and continuing high risks and uncertainties associated with all of our business transactions and agreements involving foreign countries and our inability to mitigate all such risks and uncertainties.
We expended significant managerial time and financial resources in anticipation that the agreements that we entered for the Project would be implemented. It now appears that the agreements for the Project and the anticipated transactions underlying those agreements will not be realized for reasons that are beyond our control and with the result that our investment of our managerial time and financial resources will be lost.
A copy of the Letter and our response of
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Overall and in light of our receipt of the Letter, which was entirely unexpected, we cannot assure any holder of our Common Stock, our Preferred Stock, or any of our debt instruments, that the matters set forth in the Letter will be satisfactorily resolved or are later resolved on terms that are commercially reasonable or which otherwise would allow us to achieve our original business and financial objectives. We are a small company with limited financial and managerial resources and we cannot be assured that the foreign governments that are counter-parties to the agreements or understandings that we enter into will not later determine that the terms of any agreement or understandings that we have with them (or any other collateral or related agreements or understandings) are not in their interest.
In that sense and in these circumstances we face the clear and unmistakable risks of significant and continuing losses. At present we have not been successful in undertaking and implementing our business strategy in any country. There can be no assurance that we will be successful in implementing our business strategy or otherwise achieving any of our goals and, in so doing, achieve any measure of profitability or positive cash flow or if we do, that we can sustain any measure of profitability or positive cash flow.
We remain financially insolvent since our Total Liabilities exceed our Total
Assets and in the fiscal year ending
2. Order of Suspension of Trading
On
We are disappointed by this trading suspension and while we are hopeful that we
may be able to resolve any matters that resulted in the trading suspension, we
have not yet undertaken discussions with the staff at the
We are a small company and due to our state of insolvency, we may not be able to undertake and obtain the funds needed to undertake the necessary and customary steps needed to successfully regain tradability of our Common Stock. For these and other reasons, any person who acquires our Common Stock, our Preferred Stock, or any of our debt instruments should be prepared to lose their entire investment
As we have said previously, our stockholders are reminded that our business strategy involves significant risks and uncertainties over which we have little or no control. These risks and uncertainties are far higher today given the current uncertain environment of the COVID-19 and the global pandemic and we do not anticipate that these risks and uncertainties will decline in any material respect at any time in the foreseeable future.
Item 9.01 Exhibits. Exhibit Number Description (1) Letter ofMarch 22, 2021 from the Cabinet Secretary, the NationalTreasury and Planning,Republic of Kenya ; and (2) Letter ofMarch 23, 2021 fromJohn Cecil to theCabinet Secretary, the National Treasury and Planning, Republic ofKenya -3-
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