UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14C INFORMATION
Information Statement
Pursuant to Section 14(c) of the
Securities Exchange Act of 1934
Check the appropriate box:
☒
Preliminary Information Statement
☐ Confidential, for Use of the Commission Only (as permitted by Rule 14c-5(d)(2))
☐ Definitive Information Statement
DC BRANDS INTERNATIONAL,
INC.
(Name of Registrant As Specified In Its Charter)
Payment of Filing
Fee (Check the Appropriate Box):
☒ No
fee required
☐ Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11
1. Title of each class of securities to
which transaction applies:
2. Aggregate number of securities
to which transaction applies:
3. Per unit price or other underlying
value of transaction computed pursuant to Exchange Act Rule 0-11
4. Proposed maximum aggregate value
of transaction
5. Total fee paid
☐ Check box if any party
of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its
filing.
DC BRANDS INTERNATIONAL, INC.
1685 S Colorado Blvd, Unit S291
Denver, CO 80222
(720) 281-7143
NOTICE OF STOCKHOLDER ACTION BY WRITTEN CONSENT
To the Stockholders of DC
Brands International, Inc.:
This Information Statement
is furnished to the stockholders of DC Brands International, Inc., a Colorado corporation (“DC Brands” or the “Corporation”),
in connection with our prior receipt of approval by written consent, in lieu of a special meeting, of the holder of a majority
of our voting power authorizing the board of directors of DC Brands, to effectuate a reverse stock split (the “Stock Split”)
of the issued and outstanding shares of common stock on 1 for 100 basis. On July 31, 2014, DC Brands obtained the approval
of the Stock Split by written consent of the majority stockholder that is the record owner of 201,000,000 shares of common stock,
and 91,111 shares of Series A preferred stock which represents 19,415,792,601 votes or approximately 62.60% of the voting power
as of July 31, 2014. The Stock Split cannot be effectuated until 20 days after the mailing of this Information Statement
and the filing of an amendment to DC Brands’ Articles of Incorporation with the Secretary of State of the State of Colorado.
DC BRANDS IS NOT ASKING
YOU FOR A PROXY AND YOU ARE REQUESTED TO NOT SEND A PROXY.
Because the written consent of the holders of a majority
of our voting power satisfies all applicable stockholder voting requirements, we are not asking for a proxy: please do not send
us one.
Only stockholders of record
at the close of business on July 31, 2014 (the “Record Date”) shall be given a copy of the Information Statement. The
date on which this Information Statement will be sent to stockholders will be on or about August 11, 2014.
The accompanying information
statement is for information purposes only. Please read it carefully.
By Order of the Board of
Directors
/s/ Robert Armstrong
Robert Armstrong
Chief Financial Officer
This information statement is being furnished to all holders
of the common stock of DC Brands in connection with the proposed action by Written Consent to authorize the board of directors
to carry out the Stock Split of the common stock of the Corporation.
ITEM 1.
INFORMATION STATEMENT
This information statement is being furnished to all holders of the common stock of DC Brands, in connection with resolutions
of the Board of Directors and the written consent of the holder of 62.60% of the voting rights of the stockholders of DC Brands.
The board of directors hereby provides public notice of the approval and authorization to effectuate the Stock Split of the common
stock of the Corporation, as approved by the written consent of the holder of 62.60% of the voting rights of the stockholders
of DC Brands.
The
Board of Directors has unanimously approved the Stock Split and a person owning a majority of the outstanding voting securities
of DC Brands, has adopted, ratified and approved the proposed actions. No other votes are required or necessary to effectuate
the proposed actions. See the caption "Vote Required for Approval" below. Such action by our stockholder will
be effective 20 calendar days after the date this Information Statement is first mailed to our stockholders and after the filing
of required amendment to the articles of incorporation with the Colorado Secretary of State's office.
The Quarterly
Report on Form 10-Q for quarterly periods ended March 31, 2014, and the Annual Report on Form 10-K for the year ended December
31, 2013, and any reports on Form 8-K filed by DC Brands during the past year with the Securities and Exchange Commission may
be viewed on the Securities and Exchange Commission’s website at www.sec.gov in the Edgar Archives. DC Brands is presently
current in the filing of all reports required to be filed by it. See the caption “Where You Can Find More Information,”
below.
GRANT AUTHORITY TO THE
BOARD OF DIRECTORS TO CONDUCT A 1 for 100 SHARE STOCK SPLIT OF DC BRANDS’ COMMON STOCK.
Purpose: DC Brands’
board has unanimously adopted a resolution seeking stockholder approval to authorize the Board to effectuate a reverse stock split.
The Stock Split would reduce the number of outstanding shares of our common stock. The board has determined that it would be in
the Corporation’s best interest to conduct a reverse stock split of its common stock on up to a 1 for 100 basis and has received
the consent of the holder of a majority of the voting power of the Corporation’s securities to authorize the board to conduct
such a reverse stock split.
The primary purposes of the Stock Split are to accomplish
the following:
a) increase the per share
price of the common stock to help maintain the interest of the markets;
b) reduce the number of outstanding
shares of common stock to a level more consistent with other public companies with a similar anticipated market capitalization;
c) provide the management of DC Brands
with additional flexibility to issue shares to facilitate future stock acquisitions and financing for DC Brands without the delay
and expense of holding a special meeting of stockholders.
For the above reasons, the Board of
Directors believes that the Stock Split is in the best interest of DC Brands and its stockholders. There can be no assurance,
however, that the Stock Split will have the desired benefits.
The board believes that the
Stock Split would provide for the combination of the presently issued and outstanding shares of common stock into a smaller number
of shares of identical common stock. The Stock Split would affect all common stockholders uniformly. This process that
is known as a reverse stock split, would take 100 shares of the presently issued and outstanding common stock on the effective
date of the amendment to the articles of incorporation that would carry out the reverse stock split and convert those shares into
one share of the post-reverse stock split common stock. The conversion rate of all securities convertible into common
stock would be proportionately adjusted.
The board has indicated that
fractional shares will not be issued. Instead, DC Brands will issue one full share of the post-reverse stock split common
stock to any stockholder who would have been entitled to receive a fractional share as a result of the process. Each
stockholder will hold the same percentage of the outstanding common stock immediately following the Stock Split as that stockholder
did immediately prior to the Stock Split, except for minor adjustment as a result of the additional shares that will need to be
issued a result of the treatment of fractional shares.
For the above reasons, the
board believes that the Stock Split is in the best interest of DC Brands and its stockholders. There can be no assurance,
however, that the Stock Split will have the desired benefits. The board has no immediate plans, understandings, agreements or commitments
to issue additional shares of common stock for any purpose other than upon conversion of currently outstanding securities, in accordance
with their terms.
Effects: The Stock Split
will be effected by filing an amendment to the Corporation’s Articles of Incorporation with the Colorado Secretary of State’s
office and will become effective upon such filing and final approval of the board of directors of the Corporation. The
actual timing of any such filing will be made by the board of directors based upon its evaluation as to when the filing will be
most advantageous to the Corporation and its stockholders.
DC Brands is currently authorized to
issue 30,000,000,000 shares of its common stock of which 6,093,359,427 shares are currently issued and outstanding and 25,000,000
shares of preferred stock are authorized of which (i) 100,000 are designated as Series A preferred stock and 91,111 shares of Series
A preferred stock are outstanding (ii) 2,500 are designated Series B preferred stock and 106 shares of Series B preferred stock
are outstanding. (iii) 35,000 are designated Series C preferred stock and 1,641shares of Series C preferred stock are
outstanding; (iv) 91,111 are designated Series D preferred stock and 44,663 shares of Series D preferred stock are outstanding;
(v) 10,000 are designated Series E preferred stock and 2,737 shares of Series E preferred stock are outstanding; (vi) 5,500 are
designated Series F preferred stock and 5,500 shares of Series F preferred stock are outstanding and (vii) 6,000 are designated
Series G preferred stock and 6,000 shares of Series G preferred stock are outstanding. If all of the outstanding shares of preferred
stock and outstanding convertible debt were to convert to common shares, we would be required to issue in excess of 17,000,000,000
shares of common stock which would far exceed our number of authorized shares of common stock.
The outstanding
shares of Series A preferred stock are entitled to vote 51.25% of the outstanding common stock.
Each share
of Series B preferred stock is nonvoting but is convertible into .075% of the outstanding common shares at the time of conversion.
The Class C Preferred Stock has no voting rights and is convertible at any time after the 13
th
month after the date of its issuance into such number of shares of common stock of the Company as shall equal 1% of the outstanding
common shares on the date of conversion divided by 1,000.
The Class D Preferred Stock has no dividend,
conversion or voting rights. The Class D Preferred Stock is entitled to a liquidation preference equal to 40% of the proceeds of
any sale of shares of common stock, a liquidation or winding up, the sale of the Series A Preferred.
The Class E Preferred Stock has no liquidation
or voting rights. The Class E Preferred Stock is entitled to a 10.25% dividend that is payable quarterly. The Class E Preferred
Stock is convertible at any time into such number of shares of common stock of the Company as shall equal 2.5% of the outstanding
common shares on the date of conversion divided by 1,000.
The Class F Preferred Stock has no dividend,
liquidation or voting rights. The Class F Preferred Stock is convertible at any time into such number of shares of common stock
of the Company as shall equal 1.0% of the outstanding common shares on the date of conversion divided by 1,000. The Company has
the right to redeem the Class F Preferred at a redemption price of $286.86 per share.
The Class G Preferred Stock has no dividend,
liquidation or voting rights. The Class G Preferred Stock is convertible at any time into such number of shares of common stock
of the Company as shall equal 1.0% of the outstanding common shares on the date of conversion divided by 1,000. The Company has
the right to redeem the Class F Preferred at a redemption price of $1,250 per share.
Currently, a stockholder
holding 201,000,000 shares of common stock and all of the outstanding shares of Series A preferred stock 62.60% of the voting rights
has consented in writing to the proposal. A reverse stock split on a 1 for 100 basis would reduce the number of issued
and outstanding shares of common stock to approximately 60,933,594, but will not reduce the number of preferred shares outstanding
or authorized shares of common stock. Although the number of shares into which the Series B, E, F and G preferred stock is
convertible will be reduced, the percentage of the outstanding common shares into which the Series B preferred stock will be convertible
will not change. The outstanding shares of Series A preferred stock are currently entitled and after the Stock Split will remain
entitled to vote 51.25% of the outstanding common stock.
The Stock Split will affect all common holders uniformly
and will not have any effect on the stated par value of the common stock.
The effect of the Stock Split
upon existing stockholders of the common stock will be that the total number of shares of DC Brands’ common stock held by
each stockholder will automatically convert into the number of whole shares of common stock equal to the number of shares of common
stock owned immediately prior to the Stock Split divided by 100, with an adjustment for any fractional shares. (Fractional
shares will be rounded up into a whole share). If acted upon by the Corporation’s board of directors, the consent by the
majority stockholder reported herein, would result in each stockholder’s percentage ownership interest in the Corporation
and proportional voting power will remain virtually unchanged on the date that the split is effectuated, except for minor changes
and adjustments that will result from rounding fractional shares into whole shares. The rights and privileges of the
holders of shares of common stock will be substantially unaffected by the Stock Split. All issued and outstanding options,
warrants, and convertible debt securities would be appropriately adjusted for the Stock Split automatically on the effective date
of the Stock Split.
The Stock Split may also
result in some stockholders holding “odd lots” of less than 100 shares of common stock. Brokerage commissions
and other costs of transactions in odd lots may be higher, particularly on a per-share basis, than the cost of transactions in
even multiples of 100 shares.
As a result of the proposal
to conduct the Stock Split, DC Brands will have more authorized shares available for issuance than it currently has available and
therefore, there is a significant risk of stockholder value represented by the common stock being diluted. The proposed
Stock Split creates a risk that current stockholders of the common stock will see the value of those shares diluted through the
issuance of additional authorized but currently unissued shares. The current net tangible book value per share would
be diluted if additional shares are issued without an increase taking place in the net book value of the assets of DC Brands. The
current book value of shares held by existing stockholders would not be maintained in the event additional shares are issued. The
Stock Split will reduce the number of outstanding shares of common stock to approximately 60,933,594 however the authorized shares
will remain at 30,000,000,000 and the issuance of the remaining 29,939,0066,406 would have a material dilutive effect upon existing
stockholders.
Because the Stock Split results in an
increase in the number of authorized but unissued shares of our common stock, it may be construed as having an anti-takeover effect. Although
the Stock Split is not being undertaken for this purpose, in the future the Board of Directors could, subject to its fiduciary
duties and applicable law, use the increased number of authorized but unissued shares to frustrate persons seeking to take over
or otherwise gain control of our Corporation by, for example, privately placing shares with purchasers who might side with the
Board of Directors in opposing a hostile takeover bid. Such use of our common stock could render more difficult, or
discourage, an attempt to acquire control of our Corporation if such transactions were opposed by the Board of Directors.
After the taking of any action
to conduct the Stock Split there is not a requirement that stockholders obtain new or replacement share certificates. Each
of the holders of record of shares of DC Brands’ common stock that is outstanding on the effective date of the Stock Split
may contact DC Brands’ transfer agent to exchange the certificates for new certificates representing the number of whole
shares of post-reverse stock split common shares into which the existing shares have been converted as a result of the Stock Split.
EXISTING CERTIFICATES SHOULD NOT BE
SENT TO THE CORPORATION OR THE TRANSFER AGENT BEFORE THE EFFECTIVE DATE OF THE FILING OF THE PROPOSED MOVE.
Unless and until the stockholder forwards a completed
letter of transmittal, together with certificates representing such stockholder's shares of DC Brands common stock to the transfer
agent and receives in return a new certificate representing shares of DC Brands common stock, such stockholder's existing common
stock shall be deemed equal to the number of shares of DC Brands common stock to which such stockholder is entitled as a result
of the move.
CERTAIN FEDERAL INCOME TAX CONSIDERATIONS
The following discussion describes
certain material federal income tax considerations relating to the proposed Stock Split. This discussion is based upon the Internal
Revenue Code, existing and proposed regulations thereunder, legislative history, judicial decisions, and current administrative
rulings and practices, all as amended and in effect on the date hereof. Any of these authorities could be repealed, overruled,
or modified at any time. Any such change could be retroactive and, accordingly, could cause the tax consequences to vary substantially
from the consequences described herein. No ruling from the Internal Revenue Service (the "IRS") with respect to the matters
discussed herein has been requested, and there is no assurance that the IRS would agree with the conclusions set forth in this
discussion.
This discussion may not address
federal income tax consequences that may be relevant to particular stockholders in light of their personal circumstances or to
stockholders who may be subject to special treatment under the federal income tax laws. This discussion also does not address any
tax consequences under state, local or foreign laws.
STOCKHOLDERS ARE URGED
TO CONSULT THEIR TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCE OF THE MOVE FOR THEM, INCLUDING THE APPLICABILITY OF ANY STATE,
LOCAL OR FOREIGN TAX LAWS, CHANGES IN APPLICABLE TAX LAWS AND ANY PENDING OR PROPOSED LEGISLATION.
The Stock Split is intended
to be a tax-free recapitalization to the Corporation and its stockholders. Stockholders will not recognize any gain or loss for
federal income tax purposes as a result of the Stock Split. The holding period for shares of common stock after the Stock Split
will include the holding period of shares of common stock before the Stock Split, provided, that such shares of common stock are
held as a capital asset at the effective date of the amendment. The aggregate adjusted basis of the shares of common stock after
the Stock Split will be the same as the adjusted basis of the shares of common stock before the Stock Split.
DC Brands believes that the
foregoing addresses the material United States federal income tax consequences of the Stock Split to stockholders. The opinion
is based upon the Code, applicable Treasury Regulations, judicial decisions and current administrative rulings, all of which are
subject to change with retroactive effect. The tax consequences to stockholders of the Stock Split may be affected by their particular
circumstances and by the applicability to them of one or more special rules like those which apply to dealers in securities, foreign
persons, mutual funds, insurance companies and persons who do not hold their shares as capital assets. Therefore, DC Brands urges
stockholders to consult their own tax advisors concerning the effect of the Stock Split upon them, including the effect of any
state, local or other tax to which they may be subject. An opinion of tax counsel will not be provided to stockholders.
QUESTIONS AND ANSWERS REGARDING THE
PROPOSAL AUTHORIZING THE BOARD TO CONDUCT THE PROPOSED MERGER.
Q. WHY
IS APPROVAL SOUGHT FOR THE PROPOSED STOCK SPLIT OF THE COMMON STOCK ON A 1 for 100 BASIS?
A. The Board of Directors seeks approval
of the Stock Split. It is the expectation of the Board of Directors that the Stock Split would increase the market price
of the resulting common stock and thus maintain a higher level of market interest in the shares, provide additional flexibility
to management with regard to the issuance of shares and maintaining the proper market capitalization of DC Brands. The
Board of Directors believes that the Stock Split will enhance DC Brands’ flexibility with regard to the ability to issue
common stock for fulfillment of its current obligations as well as for proper corporate purposes that may be identified from time
to time, such as financing, acquisitions, compensation of employees, the establishment of strategic business relationships with
other companies or the expansion of DC Brands’ business or product lines through the acquisition of other businesses or products.
Q. HAS
THE BOARD OF DIRECTORS APPROVED THE PROPOSAL TO CONDUCT THE PROPOSED STOCK SPLIT?
A. The
sole member of the Board of Directors have approved the proposal to authorize the board to effectuate the Stock Split of the common
stock as is in the best interest of DC Brands and the best interest of the current stockholders of DC Brands.
Q. WILL THE PROPOSED STOCK SPLIT RESULT IN ANY TAX LIABILITY
TO ME?
A. The proposed Stock Split is intended to be tax
free for federal income tax purposes.
Q. WHAT VOTE OF THE STOCKHOLDER WILL RESULT
IN THE PROPOSAL BEING PASSED?
A. To approve the proposal, the affirmative vote
of a majority of the voting rights of the common stock and other shares holding voting rights is required. Consents in favor of
the proposal have already been received from stockholders holding a majority of the voting securities of DC Brands.
Q. WHO IS PAYING FOR THIS INFORMATION
STATEMENT?
A. DC Brands will pay for the delivery of this
information statement.
Q. WHOM SHOULD I CONTACT IF I HAVE
ADDITIONAL QUESTIONS?
A: Robert Armstrong, Chief Financial Officer of
DC Brands International, Inc., 1685 S Colorado Blvd, Unit S291, Denver, Colorado 80222, telephone: (720) 281-7143.
VOTE REQUIRED FOR APPROVAL
The Board of Directors
of DC Brands have adopted, ratified and approved the proposal to authorize the Stock Split and a stockholder of the Corporation
holding a majority of the voting power on the Record Date have approved the proposed Stock Split.
DISSENTER'S RIGHTS OF APPRAISAL
The Colorado Revised Statutes
(the “Colorado Law”) do not provide for dissenter's rights in connection with the proposed amendment of the Articles
of Incorporation to effectuate a reverse stock split.
VOTING SECURITIES AND
PRINCIPAL HOLDERS THEREOF
The Board of Directors fixed the close of business
on July 31, 2014 as the record date for the determination of the common stockholders entitled to notice of the action by written
consent.
As of July 31, 2014, DC Brands had issued and outstanding 6,093,359,427 shares of common stock, 91,111 shares of Series A Preferred
Stock,. A Stockholder holding a controlling interest equaling not less than fifty percent (50%) of voting rights of the securities
of DC Brands, as of the record date has consented to the action required to carry the proposed Stock Split.
SECURITY OWNERSHIP OF EXECUTIVE OFFICERS, DIRECTORS
AND FIVE PERCENT STOCKHOLDERS
T
The
following table sets forth certain information concerning the ownership of DC Brands' common stock as of July 31, 2014, with respect
to: (i) each person known to DC Brands to be the beneficial owner of more than five percent of DC Brands' common stock; (ii) all
directors; and (iii) directors and executive officers of DC Brands as a group. The following table also sets forth information
concerning the ownership of the Series A preferred stock which is the only other class of voting stock. The outstanding shares
of Series A preferred stock are entitled to vote 51.25% of the outstanding common stock. The notes accompanying the information
in the table below are necessary for a complete understanding of the figures provided below. As of August 1, 2014,
there
were 6,093,359,427 shares of common stock issued and outstanding, 91,111 shares of Series A preferred stock issued and outstanding,
which preferred shares had the right to vote 51.25% of the outstanding voting power of DC Brands.
Title of Class
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Name and Address of
Beneficial Owner
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Amount and Nature of
Beneficial Owner
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Percent of Class
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Common Stock
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Robert H. Armstrong,
C.F.O. and
Acting CEO and
c/o DC Brands International, Inc.
1685 S Colorado
Blvd. Unit S291
Denver, Colorado 80222
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19,415,792,601
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62.60%
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(1)
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201,000,000 shares of common
stock and 91,111 shares of Series A preferred stock which represents 19,415,792,601 votes or approximately 62.60% of the voting
power as of July 31, 2014
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INTEREST
OF CERTAIN PERSONS IN MATTERS TO BE ACTED UPON
No
director, executive officer, nominee for election as a director, associate of any director, executive officer or nominee or any
other person has any substantial interest, direct or indirect, by security holdings or otherwise, in the proposed move or in any
action covered by the related resolutions adopted by the Board of Directors, which is not shared by all other stockholders.
FORWARD-LOOKING
STATEMENTS
This
information statement may contain certain “forward-looking” statements (as that term is defined in the Private Securities
Litigation Reform Act of 1995 or by the U.S. Securities and Exchange Commission in its rules, regulations and releases) representing
our expectations or beliefs regarding our company. These forward-looking statements include, but are not limited to, statements
concerning our operations, economic performance, financial condition, and prospects and opportunities. For this purpose, any statements
contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the
generality of the foregoing, words such as “may,” “will,” “expect,” “believe,”
“anticipate,” “intend,” “could,” “estimate,” “might,” or “continue”
or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These
statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond our control, and actual
results may differ materially depending on a variety of important factors, including factors discussed in this and other of our
filings with the U.S. Securities and Exchange Commission.
WHERE
YOU CAN FIND MORE INFORMATION
We
are subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended, and in accordance
with the Securities Exchange Act, we file periodic reports, documents, and other information with the Securities and Exchange
Commission relating to our business, financial statements, and other matters. These reports and other information may be inspected
and are available for copying at the offices of the Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549.
Our SEC filings are also available to the public on the SEC’s website at
http://www.sec.gov
.
INCORPORATION
OF FINANCIAL INFORMATION
We “incorporate
by reference” into this Information Statement the information in certain documents we file with the SEC, which means that
we can disclose important information to you by referring you to those documents. We incorporate by reference into this information
statement the following documents we have previously filed with the SEC: including our Form 10-K annual report for the year ended
December 31, 2013 and quarterly reports on Form 10-Q for the past quarters ended March 31, 2014, any reports on Form 8-K or other
forms which have been filed with the Securities and Exchange Commission are incorporated herein by reference. All of these forms
may be accessed through the EDGAR archives, at www.sec.gov.
Only
one information statement is being delivered to multiple stockholders sharing an address, unless we have received contrary instructions
from one or more of the stockholders. We will undertake to deliver promptly upon written or oral request a separate copy of the
information statement to a stockholder at a shared address to which a single copy of the information statement was delivered.
You may make a written or oral request by sending a written notification to our principal executive offices at 1685 S Colorado
Blvd, Unit S291, Denver, Colorado 80222 stating your name, your shared address, and the address to which we should direct the
additional copy of the information statement or by calling our principal executive offices. If multiple stockholders sharing an
address have received one copy of this information statement and would prefer us to mail each stockholder a separate copy of future
mailings, you may send notification to or call our principal executive offices. Additionally, if current stockholders with a shared
address received multiple copies of this information statement and would prefer us to mail one copy of future mailings to stockholders
at the shared address, notification of that request may also be made by mail or telephone call to our principal executive offices.
Dated:
August 1, 2014
By Order of the Board of Directors
/s/
Robert Armstrong
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Robert
Armstrong,
Chief Financial Officer
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APPENDICES
Exhibit
A-Written Consent of the Majority Stockholder
Exhibit
B- Articles of Amendment
Exhibit
A
STATEMENT OF ACTION
BY
WRITTEN CONSENT OF THE
MAJORITY
STOCKHOLDER OF
DC
BRANDS INTERNATIONAL, INC.
The
undersigned, being the majority stockholder of DC Brands International, Inc., a Colorado corporation (the "Corporation"),
and acting hereunder without the convening of a formal meeting pursuant to Section 7-107-104 of the Colorado Revised Statutes,
does hereby consent in writing to and adopt the following resolutions:
WHEREAS
,
the Board of Directors of the Corporation has determined that it is in the best interests of the Corporation to effectuate 1 for
100 reverse stock split of the Corporation’s common stock, without reducing the number of authorized shares or any other
class of stock outstanding.
RESOLVED
,
THEREFORE,
that a 1 for 100 reverse stock split of the Corporation’s common stock, without reducing the number of
authorized shares or any other class of stock outstanding, be, and hereby is, approved.
IN
WITNESS WHEREOF
,
the undersigned majority shareholder of the Corporation has
executed this Statement of Action by Written Consent as of the 31 day of July, 2014.
Exhibit
B
ARTICLES OF AMENDMENT
TO
THE
ARTICLES
OF INCORPORATION
OF
DC
BRANDS INTERNATIONAL, INC.
Pursuant
to CRS 7-90-301 and 7-110-106 of the Colorado Revised Statutes, the undersigned person, desiring to amend the Articles of Incorporation
of DC BRANDS INTERNATIONAL, INC., under the laws of the State of Colorado, does hereby sign, verify, and deliver to the Office
of the Secretary of State of Colorado, this Amendment to the Articles of Incorporation for the above-named company (hereinafter
referred to as the "Company"):
The
amendment contained herein was approved by a majority vote of stockholders of the Company on July 31, 2014.
FIRST:
The Articles of Incorporation of the Company were first filed and approved by the Office of the Secretary of State of Colorado
on April 29, 1998. This Amendment to the Articles will become effective upon the filing of the Articles of Amendment with the
Colorado Secretary of State.
SECOND:
That ARTICLE III shall be amended by adding at the end thereof the following: “Effective as of Aug ___, 2014 each share
of common stock of the Corporation issued and outstanding as of the record date set by the Corporation's board of directors will
be subject to a 1 for 100 reverse stock split, with all fractional shares being rounded up to the nearest whole share.”
All
other aspects of Article III shall remain unchanged.
IN
WITNESS WHEREOF, the Company has caused these Articles of Amendment to the Articles of Incorporation to be signed by Robert H.
Armstrong, its Acting Chief Executive Officer, this ____ day of August, 2014.
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Robert Armstrong
Chief Financial Officer
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