ITEM
8.01 Other Events
On
June 14, 2018 iGambit Inc. (the ‘Company” or “IGI”), entered into a non-binding Letter of Intent (the
“LOI”) with Winpoint Health Inc, (“Winpoint”) a chronic care management service company that monitors
patients between office visits by leveraging, both technology and a fully trained clinical team of healthcare professionals.
Pursuant
to the LOI, IGI would buy all of the outstanding shares of “Winpoint” and would assume all of the business operations
of “Winpoint”. “Winpoint” would operate as a wholly owned subsidiary of IGI.
Prior
to or concomitant with closing Winpoint will have secured a $2,000,000 equity investment into Winpoint, 100% of the proceeds to
be used for repayment of the debt and bridge financing as specified on Exhibit A attached hereto, and the balance for working
capital for the post transaction consolidated company.
The
consideration for the purchase would be as follows
:
Winpoint shareholders and the equity investors (collectively, “WP
Shareholders”) shall receive IGI Common Shares equal to 65% of the issued and outstanding shares post Transaction.
For
illustration purposes: If at Closing IGI has 140,000,000 shares issued and outstanding, the WP Shareholders shall receive 260,000,000
IGI common shares.
The
LOI has certain binding and non-binding obligations and the transaction is subject to various conditions to closing, including
satisfactory completion of due diligence, approval of the Company’s Board of Directors, approval of the Company’s
shareholders, if required, and definitive documentation. There can be no assurance that the transactions contemplated by the LOI
will be consummated. The LOI and this Current Report on Form 8-K do not constitute an offer to buy, or solicitation of an offer
to sell, any securities of the Company and no offer or sale of such securities will be made in any jurisdiction where it would
be unlawful to do so.
On
September 6, 2019 the Company entered into a non-binding Amendment No. 1 to the Letter of Intent (“LOI Amendment No. 1”)
with Winpoint.
Pursuant
to the LOI Amendment No 1, the Parties agreed to amend the LOI as follows:
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1.
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All
reference to Winpoint Health Inc. shall be deleted and replaced with Winpoint Health
LLC.
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2.
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Item
1 Structure of Transaction
of the LOI shall be deleted in its entirety and replaced
as follow:
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Structure
of Transaction.
IGI would buy certain assets of “Winpoint”. The assets to be purchased (“Purchased Assets”)
are all the assets, tangible and intangible, of any description held by Winpoint used in conducting its Chronic Care Management
business. The Purchased Assets will be placed in IGI’s wholly owned subsidiary HealthDatix Inc.
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3.
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Item
2 Investment
of the LOI shall be deleted in its entirety and replaced as follows:
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Investment.
Prior to closing Winpoint will have secured a minimum $2,000,000 equity investment to be placed into IGI concomitant with
closing of the Transaction, 100% of the proceeds to be used for repayment of certain debt and bridge financing, and for working
capital for the post Transaction consolidated company (IGX and its subsidiary HealthDatix Inc.). In exchange for the equity investment
the equity investors shall receive securities of IGI equal to approximately 35% of the issued and outstanding shares of IGI post
Transaction. At closing of the Transaction, the equity investors are prepared to accept IGI preferred securities.
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4.
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Item
3 Purchase Price
of the LOI shall be deleted in its entirety and replaced as follows:
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Purchase
Price of Purchased Assets.
As consideration for the “Purchased Assets”, Winpoint shareholders shall receive equity
in IGI convertible to approximately 30% of the equity of IGI post Transaction, terms and structure to be mutually determined prior
to closing of the Transaction. At closing of the Transaction Winpoint is prepared to accept IGI securities other than IGI Common
Shares.
5.
Item 4 Termination
of the LOI shall be deleted in its entirety and replaced as follows:
Either
party may Terminate this LOI upon thirty (30) days written notice without any liability whatsoever on either party hereto or the
Company and no party hereto or the Company shall be entitled to any form of reimbursement or relief whatsoever, including, without
limitation, injunctive relief, specific performance or damages. Upon the termination of this letter, all of the terms hereof shall
be of no further force or effect with the exception of the terms and provisions set forth in paragraphs 10 and 13 of this letter.