Item 8.01. Other Events.
This
Current report on Form 8-K contains forward-looking statements which include, but are not limited to, statements concerning expectations
as to our revenues, expenses, and net income, our growth strategies and plans, the status of evolving technologies and their growth
potential, the adoption of future industry standards, expectations as to our financing and liquidity requirements and arrangements,
the need for additional capital, and other matters that are not historical facts. These forward-looking statements are based on
our current expectations, estimates, and projections about our industry, management’s beliefs, and certain assumptions made
by it. Words such as “anticipates”, “appears”, “expects”, “intends”, “plans”,
“believes, “seeks”, “estimates”, “may”, “will” and variations of these words
or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations,
projections, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking
statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions
that are difficult to predict. Therefore, actual results could differ materially and adversely from those results expressed in
any forward-looking statements, as a result of various factors. Readers are cautioned not to place undue reliance on forward-looking
statements, which are based only upon information available as of the date of this report. We undertake no obligation to revise
or update publicly any forward-looking statements for any reason.
The
Company would like to take this opportunity to provide a corporate update to our shareholders as of March 9, 2017:
On June 30, 2015, Beta Music
Group, Inc., a Florida corporation (the “Company”) and ChoiceTrade Holdings, Inc., a Puerto Rico corporation
and the parent company of ChoiceTrade, an online broker (“Choice”) executed a non-binding letter of intent to exchange
at least a majority of the Company’s unregistered, unissued shares of common stock for all of the issued and outstanding
shares of Choice (the “Letter of Intent”). On September 1, 2015 an amended non-binding letter of intent
was signed between the Company and Choice to reflect minor changes in the original letter of intent signed on June 30, 2015.
The
final amount of the Company’s shares of common stock to be exchanged (the “Exchange Shares”) will be specified
in a Share Exchange Agreement where the exchange shares will be delivered by the Company to the shareholders of Choice at closing.
After completing the Share Exchange Agreement, the intention is to continue Choice’s historical business, including changing
the corporate name and replacing the Company’s Board of Directors with appointees of Choice and former Choice shareholders
are expected to own a controlling interest in the Company.
The Company and Choice are
in the process of closing of their Share Exchange Agreement contingent upon the
completion
of a private offering of the Company’s securities in an amount and pursuant to terms reasonably approved by the Company and
the approval of both companies’ board of directors. The Company and Choice are in the process of working to with several
firms with extensive expertise serving the Chinese, Hong Kong and Asia Markets and regulatory expertise pertaining to the successful
expansion of facilitating new customer growth. The Company and Choice are also in the process of working together regarding the
securing of between $2.0 million and $5.0 million of capital to close the Share Exchange Agreement.
Since
the completion of the amended Letter of Intent on September 1, 2015, Choice has spent a substantial amount of working capital to
prepare for the expansion of their operations in the Asia and other international markets.
Choice has signed a business
partnership agreement with a U.S. subsidiary of one of
the largest and the most respected
Internet-based financial service providers in China. Choice has also
spent capital on the continued development of
their owned software technology including web-based front-end and back-end routing engines. The web-based front-end is mobile-enabled
that is easily translated into foreign languages to support Choice’s proposed expansion into China and other
international
markets.
Choice anticipates the development of their technology and proprietary new account processing software will
allow for high volume of new accounts to be opened at low cost for new customers from China and other international markets. Choice
expects that its cloud-based infrastructure will be quickly and inexpensively scalable to accommodate thousands of new customers
and trades.
The
Company is in the process of engaging corporate counsel to domicile the Company’s corporate headquarters from Florida to
Puerto Rico. The Company anticipates that corporate tax structure and other economic benefits of Puerto Rico along with Choice
expansion into China, Hong Kong, and other international markets will provide increased value for our shareholders. The Company
is also in the process of working with legal counsel related to the completion of the planned spin-off of the Company’s current
digital media business to the Company’s shareholders of record at a date, approved by the Company, prior to the closing of
the Share Exchange Agreement. The Company is in the process of the working with our auditor, Malone Bailey, to complete the prior
and current financial filings, which has been delayed from the time of from signing the letter of intent to the closing of the
Share Exchange Transaction. We anticipate the prior and current filings will bring the Company current standing with the exchanges
and OTC Markets.
The Company would like to thank all
of our shareholders for their continued support and their patience as we work to complete this complicated transaction.