As previously announced, due to COVID-19, the Company suspended its operations in
The material terms of the binding letter agreement between the Company and
Mr. Francis has purchased 6,250,000 shares of the Company’s common stock for$500,000 , or$0.08 per share and, following such purchase owns directly and beneficially a total of 10,588,530 shares of the Company’s common stock.Mr. Francis has provided the Company with an option to call up to an additional$200,000 in funding at any time during the next twenty-four months if the Board determines the funds are necessary to maintain the Company’s viability. The Company’s option includes the discretion to accept the funding in the form of debt (a three-year loan at 6% interest only) or equity (issuance of additional shares at$0.08 per share).Mr. Francis has agreed to commence a tender offer with respect to and possibly acquire at least one-third of all outstanding shares of the Company at$0.08 per share within 45 days ofFebruary 3, 2021 .Mr. Francis has agreed to pay all costs and expenses of the tender offer.Mr. Francis agreed to waive his salary and all benefits throughMay 2021 . From June throughDecember 2021 , Mr. Francis’ annual salary level will be reduced to$100,000 with no paid benefits.Mr. Francis has agreed to waive all unpaid salary and benefits to date.
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Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements about our future revenues and financial position. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the Company’s filings with the OTC Markets. The Company assumes no obligation to update these forward-looking statements. A copy of the Company’s reports for the twelve months ended
Contact:
Chief Financial Officer
818-761-1002
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