Item 1.01 - Entry into a Material Definitive Agreement.
From September 1, 2022 to September 7, 2022, the Registrant signed two identical
Common Stock Purchase Agreements whereby subject to the terms and conditions set
forth, the Registrant will sell to the two Investors up to a combined Five
Million Dollars ($5,000,000) of registered common stock, $0.001 par value per
share (the "Common Stock"). This represents a potential $2,500,000 for each
investor.
Subject to the satisfaction of all of the conditions set forth in the Agreement,
the Registrant shall have the right, but not the obligation, to direct the
Investors, by its delivery to the Investors of a Purchase Notice from time to
time, to purchase a minimum of a combined fifty thousand dollars ($50,000) and
up to a maximum of; (i) five hundred thousand dollars ($500,000), or (ii) one
hundred and ten percent (110%) of the average daily volume traded for the
Company's common stock during the relevant Valuation Period (subject to
adjustments for stock splits, dividends, and similar occurrences), subject to
the Available Amount. The Valuation Period is the five (5) consecutive Business
Days immediately preceding, but not including the date a Purchase Notice is
delivered. The maturity date of the Agreement is June 30, 2023.
The Purchase Price is 75% of the lowest traded price of the Common Stock during
the Valuation Period. The right of the Company to commence sales of the common
stock is subject to the satisfaction that the Company's Form S-1 Registration
Statement with the Securities and Exchange Commission ("SEC") shall have been
declared and remain effective by and with the SEC, and no stop order with
respect to the Registration Statement shall be pending or threatened by the SEC.
Both Common Stock Purchase Agreements include a one time $2,500 document
processing fee upon the first funding.
Both Common Stock Purchase Agreements include the issuance of 31,250,000 shares
of Common Stock (61,500,000 combined) with 7,812,500 each (15,625,000 combined)
issued upon the execution of the Common Stock Purchase Agreements and 23,437,500
each (46,875,000 combined) issued upon an effective registration with the SEC of
the Company's Form S-1 Registration Statement. Additionally, both Common Stock
Purchase Agreements provide for the issuance of 83,333,333 warrants (166,666,666
combined) to purchase shares of Common Stock with an exercise price of $0.003
per share and a five (5) year exercise period.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished herewith:
10.7 Common Stock Purchase Agreement dated August 31, 2022
10.7.1 Warrant to Purchase Common Stock dated August 31, 2022
10.8 Common Stock Purchase Agreement dated September 1, 2022
10.8.1 Warrant to purchase Common Stock dated September 1, 2022
99.1 Press Release issued by the Registrant on September 7, 2022
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