UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
SCHEDULE
14C INFORMATION
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Statement Pursuant to Section 14(c) of the Securities Exchange Act
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Social Life Network, Inc.
(Name
of Registrant as Specified in Its Charter)
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SOCIAL
LIFE NETWORK, INC.
3465
S Gaylord Ct., Suite A509
Englewood
Colorado 80113
(855)
933-3277
INFORMATION
STATEMENT
PURSUANT
TO SECTION 14
OF
THE SECURITIES EXCHANGE ACT OF 1934
AND
REGULATION 14C AND SCHEDULE 14C THEREUNDER
WE
ARE NOT ASKING YOU FOR A PROXY
AND
YOU ARE NOT REQUESTED TO SEND US A PROXY
We
are furnishing this notice and the accompanying information
statement (the “Information Statement”) to the holders of shares of
common stock, par value $0.001 per share (“Common Stock”), of
Social Life Network, Inc. (“we”, “our”, “us”, or the “Company”), a
Nevada corporation, pursuant to Section 14 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and
Regulation 14C and Schedule 14C thereunder, and Section 78.320 of
the Nevada Revised Statutes (the “NRS”) in connection with the
approval of the Corporate Actions in 1-3 described below taken by
unanimous written consent of our Board of Directors (the “Board”)
and written consent of the holder of over 51% of the issued and
outstanding shares of Common Stock.
The
purpose of this letter is to inform you of the following 3
Corporate Actions unanimously approved by our Board of Directors
and by an over 51% shareholder vote by consent as required by our
bylaws and the NRS.
|
1. |
Amendment
to the Company’s Articles of Incorporation to increase the number
of authorized shares of Common Stock from two and one half billion
(2,500,000,000) Common Stock Shares to ten billion (10,000,000,000)
Common Stock Shares (the “Common Stock Authorized Share
Increase”). |
|
2. |
Amendment
to the Company’s Articles of Incorporation to increase the number
of authorized shares of Preferred Stock from one hundred million
(100,000,000) Preferred Stock Shares to Three Hundred Million
(300,000,000) (the “Preferred Stock Authorized Share
Increase”). |
|
3. |
Effect
a Reverse Stock Split by a ratio of not less than 1 for 5,000 and
no more than 1 for 25,000 (the “Reverse Stock Split Range”) at any
time prior to the one year anniversary of filing the definitive
Information Statement on Schedule 14C for the Reverse Stock split,
with the Company’s Board having the discretion as to whether or not
the Reverse Stock Split is to be effected, and with the exact ratio
of the Reverse Stock Split to be set at a whole number within the
Reverse Stock Split Range as determined by the Board in its sole
discretion (the “Reverse Stock Split”). |
The
Corporate Actions are more fully described in the accompanying
Information Statement and are collectively referred to herein as
the “Corporate Actions”, and individually as the Common Stock
Authorized Share Increase, Preferred Stock Authorized Share
Increase, and the Reverse Stock Split. The actions were taken by
Written Consent pursuant to Section 78.320 of the Nevada Revised
Statutes and our Bylaws, each of which permits that any action
which may be taken at any
annual or special meeting of stockholders, may be taken without a
meeting, without prior notice and without a vote, if a consent or
consents in writing, setting forth the action so taken, is signed
by the holders of outstanding stock having not less than the
minimum number of votes that would be necessary to authorize or
take such action at a meeting at which all shares entitled to vote
thereon were present and voted. The accompanying Information
Statement is being furnished to all our stockholders in accordance
with Section 14(c) of the Exchange Act and the rules promulgated by
the U.S. Securities and Exchange Commission (“SEC”) thereunder,
solely for the purpose of informing our stockholders of the actions
taken by the Written Consent before it becomes
effective.
As
detailed herein, Stockholders of Record on the Record Date will be
entitled to receive this notice and Information
Statement.
Pursuant
to Rule 14c-2 under the Exchange Act, the Corporate Actions
described herein will not be implemented until a date at least 20
days after the date on which this Information Statement has been
mailed to the stockholders, on or about the second week of April
2020. With respect to the Common Stock and Preferred Stock
Authorized Share Increases, we will file Amended and Restated
Articles of Incorporation specified above in Corporate Actions 1
and 2, on or about the second week of April 2020. With respect to
the Reverse Stock Split, we will not proceed with the effectiveness
of the Reverse Stock Split until such time that FINRA approves the
Reverse Stock Split, if ever.
This
Information Statement will serve as written notice to stockholders
pursuant to Section 78.320 of the NRS.
The
Corporate Actions have been duly authorized and approved
unanimously by our Board and by the written consent of 1 Consenting
Stockholder voting over 51% of our outstanding voting securities.
As such, your vote or consent is not requested or required. The
accompanying Information Statement is provided solely for your
information and serves as the notice required by the NRS and our
bylaws. Our bylaws provide that the Corporate Actions may be
approved without an annual meeting by unanimous written consent of
our Board and by at least a 51% voting approval of the Company’s
stockholders.
This
Information Statement will be mailed on or about March 20, 2020 to
our stockholders pursuant to Section 14(c) of the Exchange Act and
will be circulated to advise the Company’s shareholders of the
Corporate Actions already having been approved, specifically, the
following. (a) on March 4, 2020 our Board unanimously approved the
Corporate Actions and (b) on March 9, 2020, the Consenting
Shareholder, Ken Tapp, who holds 25,000,000 Class B Shares, and
without a meeting and by written shareholder consent, holds over
51% of our outstanding voting common stock representing
2,500,000,000 voting shares, approved the Corporate Actions. The
2,500,000,000 votes were derived from the 1 Consenting Shareholder
converting his 25,000,000 Class B Shares at 100 Common Stock Votes
per each Class B Share into 2,500,000,000 votes.
The
written Shareholder consent that we received constitutes the only
stockholder approval required for the Corporate Actions under
Nevada law and, as a result, no further action by any other
stockholder is required to approve the Corporate Actions and we
have not and will not be soliciting your approval of the Corporate
Actions.
The
elimination of the need for a meeting of stockholders to approve
this action is made possible by our bylaws and the Nevada Statutes,
which provides that the written consent of the holders of
outstanding shares of voting capital stock, having not less than
the minimum number of votes which would be necessary to authorize
or take such action at a meeting at which all shares entitled to
vote thereon were present and voted, may be substituted for such a
meeting. In order to eliminate the costs involved in holding a
special meeting of our stockholders, our Board of Directors voted
to utilize the written consent of the holder of at least 51% of our
voting securities.
This
notice and the accompanying Information Statement are being mailed
to our stockholders on or about March 20, 2020. This notice and the
accompanying Information Statement shall constitute notice to you
of the action by written consent in accordance with Rule 14c-2
promulgated under the Exchange Act.
This
Information Statement, which describes the above Corporate Actions
in more detail, is being furnished to our shareholders for
informational purposes only pursuant to Section 14(c) of the
Exchange Act, and the rules and regulations prescribed thereunder.
Pursuant to Rule 14c-2 under the Exchange Act, the corporate
actions will not be effective until no fewer than twenty (20)
calendar days after the initial mailing of the Information
Statement to our shareholders, during the second week of April
2020. Additionally, the Reverse Stock Split is subject to FINRA
approval, of which there are no assurances when and if FINRA will
provide such approval.
I
encourage you to read the enclosed Information, which is being
provided to all of our shareholders and describes the Corporate
Actions in detail.
THIS
IS NOT A NOTICE OF A SPECIAL MEETING OF STOCKHOLDERS AND NO
STOCKHOLDER MEETING WILL BE HELD TO CONSIDER ANY MATTER DESCRIBED
HEREIN.
WE
ARE NOT ASKING YOU FOR A PROXY
AND
YOU ARE NOT REQUESTED TO SEND US A PROXY
By
Order of the Board of Directors,
/s/
Ken Tapp |
|
Chief
Executive Officer/Chairman |
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OUTSTANDING
SHARES AND VOTING RIGHTS
As of the
Record Date of March 9, 2020, the Company’s authorized
capitalization consisted of 2,700,000,000 shares of Common Stock,
$0.001 par value per share, consisting of 2,500,000,000 Common
Stock Shares authorized, 100,000,000 Preferred Shares authorized
and 100,000,000 Class B Common Stock Shares authorized. As of March
9, 2020, 310,128,893 Common Stock Shares were issued and
outstanding, 0 Shares of Preferred Shares are issued and
outstanding and 25,000,000 Class B Shares are outstanding. Each
share of Common Stock entitles its holder to one vote on each
matter submitted to the stockholders. Holders of Series B Preferred
Stock are entitled to 100 votes per each Class B Share. The rights,
voting or otherwise of Preferred Shares have not been established
pursuant to a Certificate of Designation of Preferences, Rights and
Preferences. One Consenting Shareholder holding 25,000,000 Class B
Shares has 2,500,000,000 Votes and as of the Record Date has voted
in favor of the Corporate Actions by shareholder resolution dated
March 9, 2020 and no other stockholder consents will be solicited
in connection with this Information Statement.
THIS
INFORMATION STATEMENT IS CIRCULATED TO ADVISE THE SHAREHOLDERS OF
THE CORPORATE ACTION ALREADY APPROVED BY WRITTEN CONSENT OF THE
SHAREHOLDER WHO HOLDS OVER 51% OF THE VOTING POWER OF OUR CAPITAL
STOCK.
Please
review the Information Statement included with this Notice for a
more complete description of this matter. This Information
Statement is being sent to you for informational purposes
only.
WE
ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US
A PROXY.
The
Corporate Actions that we wish to advise you of are: Amendments to
the Company’s Articles of Incorporation to increase the number of
authorized shares of Common Stock from 2,500,000,000 to
10,000,000,000, increase the number of authorized shares of
Preferred stock from 100,000,000 to 300,000,000, and to implement
the Reverse Stock Split with a Stock Split Ratio to be
determined by our Board.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES A “SAFE
HARBOR” FOR FORWARD LOOKING STATEMENTS. This Information Statement
contains statements that are not historical facts. These statements
are called “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. These statements involve important
known and unknown risks, uncertainties and other factors and can be
identified by phrases using “estimate,” “anticipate,” “believe,”
“project,” “expect,” “intend,” “predict,” “potential,” “future,”
“may,” “should” and similar expressions or words. Our future
results, performance or achievements may differ materially from the
results, performance or achievements discussed in the
forward-looking statements. There are numerous factors that could
cause actual results to differ materially from the results
discussed in forward-looking statements, including: (a) changes in
the market for the development of our business that may affect our
earnings and financial position; (b) any financial uncertainties
that could impact our results of operations; and (c) factors and
risks that we have discussed in previous public reports filed with
the Securities and Exchange Commission. These factors that could
affect the results described by forward-looking statements
contained in this Information Statement. However, it is not
intended to be exhaustive; many other factors could impact our
business and it is impossible to predict with any accuracy which
factors could result in which negative impacts. Although we believe
that the forward-looking statements contained in this Information
Statement are reasonable, we cannot provide you with any guarantee
that the anticipated results will be achieved. All forward-looking
statements in this Information Statement are expressly qualified in
their entirety by the cautionary statements contained in this
section and you are cautioned not to place undue reliance on the
forward-looking statements contained in this Information Statement.
In addition to the risks listed above, other risks may arise in the
future, and we disclaim any obligation to update information
contained in any forward-looking statement.
These
statements may be found under “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and “Description
of Business,” included in our Form 10-K for the period ending
December 31, 2018 and our Forms 10-Q for the periods ending March
31, 2019, June 30, 2019, and September 30, 2019 which reports are
available at sec.gov. Actual events or results may differ
materially from those discussed in forward-looking statements as a
result of various factors, including, without limitation, the risks
outlined under “Risk Factors” and matters described in the
information statement generally. In light of these risks and
uncertainties, there can be no assurance that the forward-looking
statements contained in the information statement will in fact
occur.
The
forward-looking statements herein are based on current expectations
that involve a number of risks and uncertainties. Such
forward-looking statements are based on assumptions described
herein. The assumptions are based on judgments with respect to,
among other things, future economic, competitive and market
conditions, and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond our control. Accordingly, although we believe that the
assumptions underlying the forward-looking statements are
reasonable, any such assumption could prove to be inaccurate and
therefore there can be no assurance that the results contemplated
in forward-looking statements will be realized. In addition, there
are a number of other risks inherent in our business and
operations, which could cause our operating results to vary
markedly, and adversely from prior results or the results
contemplated by the forward-looking statements. Management
decisions, including budgeting, are subjective in many respects and
periodic revisions must be made to reflect actual conditions and
business developments, the impact of which may cause us to alter
marketing, capital investment and other expenditures, which may
also materially adversely affect our results of operations. In
light of significant uncertainties inherent in the forward-looking
information the inclusion of such information should not be
regarded as a representation by us or any other person that our
objectives or plans will be achieved.
We
believe it is important to communicate certain of our expectations
to our investors. Forward-looking statements are not a guarantee of
future performance. They involve risks, uncertainties and
assumptions that could cause our future results to differ
materially from those expressed in any forward-looking statements.
Many factors are beyond our ability to control or predict. You are
accordingly cautioned not to place undue reliance on such
forward-looking statements. Important factors that may cause our
actual results to differ from such forward-looking statements
include, but are not limited to, the risks outlined under “Risk
Factors” herein and in our SEC filings. The reader is cautioned
that we do not have a policy of updating or revising
forward-looking statements and thus the reader should not assume
that silence by management of our company over time means that
actual events are bearing out as estimated in such forward-looking
statements.
ABOUT
THE INFORMATION STATEMENT
What
is the Purpose of the Information Statement?
This
Information Statement is being furnished to you pursuant to Section
14 of the Exchange Act, to notify the Company’s stockholders as of
the Record Date of the Corporate Actions expected to be taken
pursuant to the consents or authorizations of our Board and one
consenting stockholder representing a majority of the voting rights
of the Company’s outstanding capital stock.
One
Consenting Stockholder holding in excess of fifty one (51%) of the
voting power of the Company’s outstanding voting securities voted
in favor of the corporate matters outlined in this Information
Statement, consisting of the approval of: (a) Amendment to the
Company’s Articles of Incorporation to increase the number of
authorized shares of Common Stock from two and one-half billion
(2,500,000,000) Common Stock Shares to ten (10) billion
(10,000,000,000) Common Stock Shares (the “Common Stock Authorized
Share Increase”); (b) Amendment to the Company’s Articles of
Incorporation to increase the number of authorized shares of
Preferred Stock from one hundred million (100,000,000) to three
hundred million (300,000,000) (the “Preferred Stock Authorized
Share Increase”); and (c) Effect a Reverse Stock Split by a ratio
of not less than 1 for 5,000 and no more than 1 for 25,000 at any
time prior to the one year anniversary of filing the definitive
Information Statement on Schedule 14C with respect to the Reverse
Stock Split, with the Company’s Board having the sole discretion as
to whether or not the Reverse Stock Split is to be effected, and
with the exact ratio of any Reverse Stock Split to be set at a
whole number within the range as determined by the Board in its
sole discretion.
Who
is Entitled to Notice?
Each
holder of outstanding voting securities, as of the Record Date will
be entitled to notice of the Corporate Actions. One Consenting
Stockholder as of the close of business on the Record Date that
held in excess of fifty one (51%) of the voting power of the
Company’s outstanding shares of voting securities voted in favor of
the Corporate Actions on March 9, 2020.
What
actions were taken by written consent?
A
Stockholder holding in excess of fifty one (51%) of the voting
power of the Company’s outstanding voting securities has voted in
favor of the following actions: (a) Amendment to the Company’s
Articles of Incorporation to effect the Common Stock Authorized
Share Increase; (b) Amendment to the Company’s Articles of
Incorporation to effect the Preferred Stock Authorized Share
Increase; and (c) Amendment to the Company’s Articles of
Incorporation to effect a Reverse Stock Split by a ratio of not
less than 1 for 5,000 and no more than 1 for 25,000 at any time
prior to the one year anniversary of filing the definitive
Information Statement on Schedule 14C with respect to the Reverse
Stock Split, with the Company’s Board of having the sole discretion
as to whether or not the Reverse Stock Split is to be effected, and
with the exact ratio of any Reverse Stock Split to be set at a
whole number within the range as determined by the Board in its
sole discretion.
What
Vote is Required to Approve the Actions?
The
affirmative vote of over 51% of the voting power of the Company’s
voting securities outstanding on the Record Date of March 9, 2020
is required for approval of the amendment to our Articles of
Incorporation.
What
vote was obtained to approve the actions described in this
information statement?
We
obtained the approval of one holder of 25,000,000 Class B Shares
entitling said holder to 2,5000,000,000 votes, representing over
51% of the voting securities.
We are
distributing this Information Statement to the Company’s
shareholders in satisfaction of the notice requirements we have
under the Exchange Act and the NRS. We will undertake no additional
action with respect to the receipt of the Board and shareholder
written consents, and no appraisal rights under the NRS or
otherwise are afforded to our shareholders as a result of the
Corporate Actions described in this Information
Statement.
This
Information Statement is being furnished by us in connection with
action taken by at least 51% of the voting power of our issued and
outstanding voting securities. By written consent dated March 9,
2020, the holder of over 51% of the voting power voted to approve
the Common Stock Authorized Share Increase, the Preferred
Authorized Share Increase, and the Reverse Stock Split. We will be
sending or giving this Information Statement to our stockholders on
or about March 20, 2020 (assuming that the SEC will not issue any
comments regarding the 14C Information Statement that would delay
the mailing of the Information Statement), which will permit us to
file the Definitive Information Statement. Our principal executive
offices are located at 3465 S. Gaylord Court, Suite A509, Denver,
Colorado and our telephone number is (855) 933-3277.
Board
Approval of the Corporate Action.
On
March 4, 2020, our Board of Directors unanimously approved of the
Corporate Actions and recommended to the holder of over 51% of our
outstanding voting securities to approve the Corporate
Action.
The
Shareholder Action by Written Consent
On March
9, 2020, the holder of 25,000,000 Class B Common Stock Shares, our
Chief Executive Officer/Chairman, Ken Tapp, voted 2,500,000,000
Votes or over 51% of our outstanding voting securities and approved
the Common Stock Authorized Share Increase, the Preferred
Authorized Share Increase, and the Reverse Stock Split.
No
Further Voting Required
All
necessary corporate and stockholder approvals have been obtained
for the Common Stock Authorized Share Increase, the Preferred
Authorized Share Increase, and the Reverse Stock Split. We are not
seeking consent, authorizations, or proxies from you. The NRS and
our bylaws provide that actions requiring a vote of the
stockholders may be approved by written consent of the holders of
outstanding shares of voting capital stock having not less than the
minimum number of votes which would be necessary to authorize or
take such action at a meeting at which all shares entitled to vote
thereon were present and voted.
Notice
Pursuant to the Nevada Statutes
Pursuant
to the NRS, we are required to provide prompt notice of the
Corporate Actions to our stockholders who have not consented in
writing to such action. This Information Statement serves as the
notice required by the NRS in addition to which, we will be mailing
this notice to our shareholders.
Dissenters’
Rights of Appraisal
The
NRS does not provide dissenters’ rights of appraisal to our
stockholders in connection with the matters approved by the Written
Consent.
OUTSTANDING
VOTING SECURITIES
As of
March 9, 2020, we had 310,128,893 issued
and outstanding shares of Common Stock of shares of Common Stock,
par value $0.001 per share, such shares constituting all of our
issued and outstanding Common Stock. Additionally, as of March 9,
2020, we had 1,434,423,529 common stock shares held in reserve at
our transfer agent.
Our bylaws
permit the holders of at least 51% of our outstanding Common Stock
to approve and authorize actions by written consent as if the
action were undertaken at a duly constituted meeting of our
shareholders. On March 4, 2020, our Board consented in writing to
approving the Common Stock Authorized Share Increase, the Preferred
Stock Authorized Share Increase, and the Reverse Stock Split, and
recommended that the Consenting Shareholder approve these Corporate
Actions. As of March 9, 2020, the holder of an aggregate of
2,500,000,000 Voting Shares by the Consenting Shareholder
representing over 51% of the total shares of our Common Stock
entitled to vote on the matters set forth herein, consented in
writing without a meeting to the matters described herein and
approved of the Authorized Share Increase summarized
below.
CORPORATE
ACTIONS
The
Corporate Actions described in this Information Statement will not
afford shareholders the opportunity to dissent from the Corporate
Actions described herein or to receive an agreed or judicially
appraised value for their shares.
Our
Board and the Consenting Shareholder have consented to, approved,
authorized and directed the filing of the following amendments with
the State of Nevada:
|
1. |
Amendment
to the Company’s Articles of Incorporation to increase the number
of authorized shares of Common Stock from Two Billion Five Hundred
Million (2,500,000,000) to Ten Billion (10,000,000,000) Common
Stock Shares. |
|
2. |
Amendment
to the Company’s Articles of Incorporation to increase the number
of authorized shares of Preferred Stock from One Hundred Million
(100,000,0000) to Three Hundred Million (300,000,000) |
|
3. |
Amendment
to effect a Reverse Stock Split by a ratio of not less than 1 for
5,000 and no more than 1 for 25,000 (the “Reverse Stock Split
Range”) at any time prior to the one year anniversary of filing the
definitive Information Statement on Schedule 14C for the Reverse
Stock split, with the Company’s Board of Directors having the
discretion as to whether or not the Reverse Stock Split is to be
effected, and with the exact ratio of the Reverse Stock Split to be
set at a whole number within the Reverse Stock Split Range as
determined by the Board in its discretion. |
A copy of
the Amendments to be filed with the Secretary of State of Nevada
are attached hereto as Appendix A (Common Stock Authorized Share
Increase and Preferred Stock Authorized Share Increase) and
Appendix B (Reverse Stock Split).
This
Information Statement is being furnished to our shareholders in
connection with the Corporate Actions in 1-3 above, which were
approved by unanimous written consent of our Board and the holder
of an over 51% vote of our issued and outstanding common stock in
lieu of a special meeting. On March 4, 2020 and March 9, 2020, our
Board and the Consenting Shareholder approved the Corporate Actions
in 1- 3 above, respectively.
The
Consenting Shareholder has 2,500,000,000 votes through his
ownership of common stock shares for over 51% of our outstanding
voting stock and has executed a written consent approving the
Corporate Actions in 1 -3 above. The 2,500,000,000 Votes are a
result of the Consenting Shareholder holding 25,000,000 Common
Stock B Shares, each Class B Share of which holds 100 votes. The
elimination of the need for a meeting of shareholders to approve
these actions is made possible by the NRS and our bylaws. In order
to eliminate the costs involved in holding a special meeting, our
Board determined to utilize the written consent of the holder of
over 51% of our voting securities. Pursuant to Rule 14c-2 under the
Exchange Act, the Corporate Actions will not be effective until 20
days after the mailing of this Information Statement to our
stockholders. Pursuant to NRS Section 607.0704, we are required to
provide notice of the taking of the corporate action without a
meeting of shareholders to all shareholders who did not consent in
writing to such action. This Information Statement serves as this
notice. This Information Statement will be mailed on or about March
20, 2020 to our shareholders who did not consent to the Corporate
Actions, and is being delivered to inform you of the Corporate
Actions described herein, before it takes effect in accordance with
Rule 14c-2 of the Exchange Act. We will bear the entire cost of
furnishing this Information Statement.
Reasons
for the Authorized Capital Increase
As of
March 9, 2020, there were 310,128,893 shares of Common Stock issued
and outstanding. In addition, as of the close of business on March
9, 2020, there were 1,434,423,529 shares of Common Stock that are
reserved. and issuable. The Company’s Articles of Incorporation
currently authorizes the issuance of up to 2,500,000,000 shares of
Common Stock, par value $0.001 per share. The Company has been
raising capital for its ongoing operations by entering into various
Convertible Loan Agreements, which permit the lender to convert all
or a portion of the debt into stock. As of March 9, 2020, the
aggregate of issued common stock and reserved common stock reached
the amount of 1,744,552,422. The Board determined that it is in the
best interests of the Company to increase the authorized number of
common stock shares from 2,500,000,000 to 10,000,000,000 in order
to permit the Company to continue to borrow funds or otherwise
raise funds for its ongoing business operations until such time as
the Company is self-funded. In such determination, the Board
considered the effect of the increase in authorized shares on its
outstanding securities and the level of availability of authorized
but unissued shares it deems necessary for the Company to
accommodate reserve of common stock shares for the purpose of
raising additional capital to fund ongoing business operations and
to issue additional restricted common stock shares to raise
additional capital to fund ongoing business operations.
Other
than as described above, the Company has no current plan,
commitment, arrangement, understanding or agreement regarding the
issuance of the additional shares of Common Stock resulting from
the proposed increase in the number of authorized shares of Common
Stock. The additional shares of Common Stock will be available for
issuance from time to time as determined by the Board.
Effect
of the Authorized Capital Increase
If we
issue additional shares of Common Stock (or securities convertible
into, or exercisable or exchangeable for, shares of Common Stock)
as described above, this could have the effect of diluting existing
stockholders’ ownership. Further, depending upon the price at which
shares might be issued, this may have the effect of depressing the
price of shares of our Common Stock or diluting the book value of
Common Stock per share or earnings per share. Additional issuances
could also reduce the per share amounts available upon our
liquidation, if that should occur. While the issuance of shares in
certain instances may have the effect of forestalling a hostile
takeover, the Board does not intend nor does it view the increase
in authorized shares as an antitakeover measure, nor are we aware
of any proposed or contemplated transaction of this
type.
The
additional authorized shares of Common Stock when issued will have
the identical powers, preferences, and rights as the shares now
issued and outstanding, including the right to cast one vote per
share and to receive dividends, if any.
Effective
Date of the Common Stock and Preferred Stock Authorized Share
Increases
The
Common Stock and Preferred Stock Authorized Share Increases will
become effective upon the filing of a Certificate of Amendment to
our Articles of Incorporation with the Secretary of State of the
State of Nevada or at such later time as indicated in such
amendment. We intend to file the Certificate of Amendment to our
Articles of Incorporation regarding the Authorized Share Increase
on or about the 2nd week of April 2020 with the
Secretary of State of the State of Nevada after the 20-day period
following the date on which this Information Statement is first
mailed to our stockholders.
Effective
Date of the Reverse Stock Split
The
Reverse Stock Split, the timing and the specific Reverse Stock
Split Ratio of which will be determined by our Board will not
become effective until we receive FINRA approval.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
The
following table sets forth, as of March 9, 2020, certain
information with respect to the beneficial ownership of our common
stock by each stockholder known by us to be the beneficial owner of
more than 5% of any class of our voting securities and by each of
our current directors, our named executive officers and by our
current executive officers and directors as a group.
Name of
Beneficial Owner |
|
Title of
Class |
|
Amount
and Nature of Beneficial Ownership (1) |
|
|
Percentage
of Class (2) |
|
LVC
Consulting, LLC |
(3) |
Common
Stock |
|
|
59,736,667 |
|
|
|
19.2 |
% |
c/o Kenneth Tapp
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rodosevich
Investments, LLC (4) |
|
Common
Stock |
|
|
14,736,667 |
|
|
|
4.7 |
% |
c/o Andy Rodosevich
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Somerset
Private Fund, Ltd. |
(5) |
Common
Stock |
|
|
13,320,000 |
|
|
|
4.2 |
% |
387 Corona Street,
Suite 55 Denver, CO 80218 Somerset Private Fund, Ltd.
387 Corona Street, Suite 55 Denver, CO 80218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark
DiSiena |
(6) |
Common
Stock |
|
|
1,000,000 |
|
|
|
0.3 |
% |
c/o Mark DiSiena
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Britt
Glassburn |
(7) |
Common
Stock |
|
|
1,283,333 |
|
|
|
0.4 |
% |
c/o Britt
Glassburn
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brian
Lazarus |
(8) |
Common
Stock |
|
|
5,000,000 |
|
|
|
1.5 |
% |
c/o Brian Lazarus
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Todd
Markey |
(9) |
Common
Stock |
|
|
1,000,000 |
|
|
|
0.3 |
% |
c/o Todd Markey
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lynn
Murphy |
(10) |
Common
Stock |
|
|
608,333 |
|
|
|
0.1 |
% |
c/o Todd Markey
3465 S. Gaylord Court, Suite A509 Denver, Colorado
80113 |
|
|
|
|
|
|
|
|
|
|
All
executive officers, directors, investors, as a group |
(11) |
Common
Stock |
|
|
96,585,000 |
|
|
|
31.1 |
% |
All
executive officers, directors, as shareholders |
(12) |
Common
Stock |
|
|
68,628,333 |
|
|
|
22.1 |
% |
|
(1) |
Except
as otherwise indicated, we believe that the beneficial owners of
the common stock listed above, based on information furnished by
such owners, have sole investment and voting power with respect to
such shares, subject to community property laws where applicable.
Beneficial ownership is determined in accordance with the rules of
the SEC and generally includes voting or investment power with
respect to securities. Common stock subject to options or warrants
currently exercisable or exercisable within 60 days, are deemed
outstanding for purposes of computing the percentage ownership of
the person holding such option or warrants but are not deemed
outstanding for purposes of computing the percentage ownership of
any other person. |
|
(2) |
Percentage
of common stock is based on 310,128,893 shares of our common stock
issued and outstanding as of March 9, 2020 |
|
(3) |
Ken
Tapp was appointed as Chief Executive Officer, Chief Technology
Officer, and Chairman on June 6, 2016. He was Chief Financial
Officer from August 1, 2018 thru October 31, 2018. |
|
(4) |
Andrew
Rodosevich was appointed as Chief Financial Officer since June 6,
2016, which he resigned from that position effective July 31,
2018. |
|
(5) |
Somerset
Private Fund, Ltd. (“Somerset”) is registered in the state of
Colorado. There are 6 limited partners of Somerset. Robert Stevens,
Somerset’s President holds a 90% interest in Somerset. Somerset’s
Board of Directors has sole dispositive and transfer power over the
shares. Robert Stevens was appointed as the receiver in 2014 when
we were placed into Receivership in Nevada’s 8th Judicial District
(White Tiger Partners, LLC et al v. Sew Cal Logo, Inc.et al, Case
No A-14-697251-C) (Dept. No.: XIII). |
|
(6) |
Mark
DiSiena was appointed as Chief Financial Officer on November 1,
2018, after being our consulting from August 1, 2018 through
October 31, 2018. |
|
(7) |
On
January 21, 2020, our Board of Directors appointed Britt Glassburn
as our Director. |
|
(8) |
On
January 21, 2020, our Board of Directors appointed Brian Lazarus as
our Director. |
|
(9) |
Todd
Markey was hired as Director of Investor Relations on April 1,
2019, and on January 21, 2020 appointed to our Board of Directors
as our Director. |
|
(10) |
On
January 21, 2020, our Board of Directors appointed Lynn Murphy as
our Director. |
|
(11) |
Consists
of LVC Consulting, LLC (Ken Tapp); Rodosevich Investments, LLC
(Andrew Rodosevich); Somerset Private Fund, Ltd., Ken Tapp, Mark
DiSiena, Britt Glassburn, Brian Lazarus, Todd Markey, and Lynn
Murphy. |
|
(12) |
Consists
of Ken Tapp, Mark DiSiena, Britt Glassburn, Brian Lazarus, Todd
Markey, Lynn Murphy |
ACTION 1
AMENDMENT TO OUR ARTICLES OF INCORPORATION TO INCREASE THE TOTAL
NUMBER OF SHARES OF AUTHORIZED COMMON STOCK TO 10,000,000,000
SHARES OF COMMON STOCK FROM 2,5000,000,000.
Our
Board and the holders of a majority of the voting securities have
approved the amendment to our Articles of Incorporation (the
“Amendment”) increasing our authorized shares of Common Stock from
2,500,000,000 shares to 10,000,000,000 shares. The increase in our
authorized shares of Common Stock will become effective upon the
filing of the Amendment with the Secretary of State of the State of
Nevada. We will file the Amendment approximately (but not less
than) 20 days after the definitive information statement is mailed
to stockholders.
The
form of the Amendment to be filed with the Secretary of State of
the State of Nevada is set forth as Appendix A to this information
statement.
Outstanding
Shares and Purpose of the Amendment
Our
Articles of Incorporation currently authorize us to issue a maximum
of 2,500,000,000 shares of common stock, $0.001 per shares. As of
March 9, 2020, we had: 310,128,893 shares
of common stock issued and outstanding.
Our Board
believes that the increase in our authorized common stock will
provide us with greater flexibility with respect to our capital
structure for business purposes including additional equity
financings.
Effects
of the Increase in Authorized Common Stock
The
additional shares of common stock will have the same rights as the
presently authorized shares, including the right to cast one vote
per share of common stock. Although the authorization of additional
shares will not, in itself, have any effect on the rights of any
holder of our common stock, the future issuance of additional
shares of Common Stock (other than by way of a stock split or
dividend) would have the effect of diluting the voting rights and
could have the effect of diluting earnings per share and book value
per share of existing stockholders.
At
present, our Board has no plans to issue the additional shares of
common stock authorized by the Amendments. However, it is possible
that some of these additional shares could be used in the future
for various other purposes without further stockholder approval,
except as such approval may be required in particular cases by our
charter documents, applicable law or the rules of any stock
exchange or other quotation system on which our securities may then
be listed. These purposes may include raising capital, settlement
of debt, providing equity incentives to employees, officers or
directors, and establishing strategic relationships with other
companies. The Company has historically funded its operations
through the issuance of its securities in the form of convertible
debt or common stock issuances. The additional shares of common
stock will allow the Company to continue to fund its operations
through the issuance of convertible debt.
We could
also use the additional shares of common stock that will become
available pursuant to the Amendments to oppose a hostile takeover
attempt or to delay or prevent changes in control or management of
our company. Although the Board’s approval of the Amendments was
not prompted by the threat of any hostile takeover attempt (nor is
the board currently aware of any such attempts directed at us),
nevertheless, stockholders should be aware that the Amendments
could facilitate future efforts by us to deter or prevent changes
in control of our company, including transactions in which our
stockholders might otherwise receive a premium for their shares
over then current market prices.
Interests
of Certain Persons in the Action
Certain
of the Company’s officers and directors may have an interest in the
Amendments as a result of their ownership of shares of our common
stock. However, we do not believe that our officers or directors
have interests in the Amendments that are different from or greater
than those of any other of our stockholders.
ACTION 2
AMENDMENT TO OUR ARTICLES OF INCORPORATION TO INCREASE THE TOTAL
NUMBER OF SHARES OF AUTHORIZED preferred STOCK TO 300,000,000
SHARES FROM 100,000,000.
Our
Board and the holders of a majority of the voting securities have
approved the amendment to our Articles of Incorporation (the
“Amendment”) increasing our authorized shares of Preferred Stock
from 100,000,000 shares to 300,000,000 shares. The increase in our
authorized shares of Preferred Stock will become effective upon the
filing of the Amendment with the Secretary of State of the State of
Nevada. We will file the Amendment approximately (but not less
than) 20 days after the definitive information statement is mailed
to stockholders.
The
form of the Amendment to be filed with the Secretary of State of
the State of Nevada is set forth as Appendix A to this information
statement.
Outstanding
Shares and Purpose of the Amendment
Our
Articles of Incorporation currently authorize us to issue a maximum
of 100,000,000 shares of Preferred Stock, $0.001 per share. As of
the Record Date, we had 0 Shares of Preferred Stock issued and
outstanding.
The
board of directors believes that the increase in our authorized
preferred stock will provide us with greater flexibility with
respect to our capital structure for business purposes, including
additional equity financings and stock-based acquisitions. There
will be no change to our authorized Class B Common
Stock.
Effects
of the Increase in Authorized Preferred Stock
We
have not yet established the classes of Preferred Stock or rights
and preferences. It is possible that some of these additional
preferred shares could be used in the future for various other
purposes without further stockholder approval, except as such
approval may be required in particular cases by our charter
documents, applicable law or the rules of any stock exchange or
other quotation system on which our securities may then be listed.
These purposes may include raising capital, settlement of debt,
providing equity incentives to employees, officers or directors,
and advisors, or acquisitions.
Interests
of Certain Persons in the Action
Certain
of the Company’s officers and directors may have an interest in the
Amendment as a result of their ownership of shares of our common
stock. However, we do not believe that our officers or directors
have interests in the Amendment that are different from or greater
than those of any other of our stockholders.
ACTION 3
AMENDMENT
TO EFFECT A REVERSE STOCK SPLIT BY A RATIO OF NOT LESS THAN 1 FOR
5,000 AND NO MORE THAN 1 FOR 25,000 (THE “REVERSE STOCK SPLIT
RANGE”) AT ANY TIME PRIOR TO THE ONE YEAR ANNIVERSARY OF FILING THE
DEFINITIVE INFORMATION STATEMENT ON SCHEDULE 14C FOR THE REVERSE
STOCK SPLIT, WITH THE COMPANY’S BOARD OF DIRECTORS HAVING THE SOLE
DISCRETION AS TO WHETHER OR NOT THE REVERSE STOCK SPLIT IS TO BE
EFFECTED, AND WITH THE EXACT RATIO OF THE REVERSE STOCK SPLIT TO BE
SET AT A WHOLE NUMBER WITHIN THE REVERSE STOCK SPLIT RANGE AS
DETERMINED BY THE BOARD IN ITS SOLE DISCRETION (THE “REVERSE STOCK
SPLIT”).
Our
board of directors and the holders of a majority of the voting
securities have approved to effect a reverse stock split of our
common stock by a ratio of not less than 1 for 5,000 and no more
than 1 for 25,000 (the “Reverse Stock Split Range”) at any time
prior to the one year anniversary of filing the definitive
Information Statement on Schedule 14C for the Reverse Stock split,
with the Company’s Board of Directors having the discretion as to
whether or not the Reverse Stock Split is to be effected, and with
the exact ratio of the Reverse Stock Split to be set at a whole
number within the Reverse Stock Split Range as determined by the
Board in its discretion. The form of the proposed amendment to the
Company’s Articles to effect a Reverse Stock Split of our issued
and outstanding Common Stock will be substantially as set forth on
Appendix B (subject to any changes required by applicable law). The
Reverse Stock Split proposal would permit (but not require) our
Board to effect a Reverse Stock Split of our issued and outstanding
Common Stock within the Reverse Stock Split Range. We believe that
enabling our Board to set the ratio within the stated range will
provide us with the flexibility to implement the Reverse Stock
Split in a manner designed to maximize the anticipated benefits for
our stockholders. In determining a ratio, if any, our Board may
consider, among other things, factors such as:
|
● |
the
historical trading price and trading volume of our Common
Stock; |
|
● |
the
number of shares of our Common Stock outstanding and held in
reserve at our transfer agent; |
|
● |
the
then-prevailing trading price and trading volume of our Common
Stock and the anticipated impact of the Reverse Stock Split on the
trading market for our Common Stock; |
|
● |
the
anticipated impact of a particular ratio on our ability to reduce
administrative and transactional costs; and |
|
● |
prevailing
general market and economic conditions. |
Depending
on the ratio for the Reverse Stock Split determined by our Board,
Stockholders, and contingent upon the specific Reverse Stock Split
Ratio that will ultimately be implemented, there will be a
specified number shares of existing Common Stock Shares outstanding
that may be combined into one share of Common Stock. Any fractional
shares will be rounded up to the next whole number. The Amendment
to effect the Reverse Stock Split, if any, will include only the
Reverse Stock Split ratio determined by our Board to be in the best
interests of our Stockholders and all of the other proposed
amendments at different ratios will be abandoned.
PLEASE
NOTE THAT THE REVERSE STOCK SPLIT WILL NOT CHANGE YOUR
PROPORTIONATE EQUITY INTERESTS IN THE COMPANY, EXCEPT AS MAY RESULT
FROM THE ISSUANCE OF SHARES PURSUANT TO THE FRACTIONAL
SHARES.
PLEASE
NOTE THAT THE REVERSE STOCK SPLIT WILL HAVE THE EFFECT OF
SUBSTANTIALLY INCREASING THE NUMBER OF SHARES THE COMPANY WILL BE
ABLE TO ISSUE TO NEW OR EXISTING SHAREHOLDERS BECAUSE THE NUMBER OF
AUTHORIZED SHARES WILL BE INCREASED WHILE THE NUMBER OF SHARES
ISSUED AND OUTSTANDING WILL BE DECREASED.
Purpose
and Material Effects of the Reverse Stock Split
The
Board of Directors believes that the low stock price and the large
number of outstanding shares of our Common Stock have reached a
difficult time for the Company’s investors and in connection with
the Company’s operations and financial prospects As a result, the
Board of Directors has proposed the Reverse Stock Split to
potentially expand our business on a going forward basis, but we
cannot guarantee whether we will achieve our goals for revenues and
investors.
There
are no plans, arrangements, understandings, etc. for the newly
authorized but unissued shares that will become available following
our Reverse Stock Split.
The
Company will substitute one share of stock for a predetermined
amount of shares of stock during a Reverse Stock Split. This
activity will not change the market capitalization of the
company nor will it change shareholder's basis and valuation. An
example of a reverse split is the following: Assuming a
company has 5,000,000 shares of common stock issued and
outstanding, at market price is $0.01 per share or $50,000 in stock
value, and the company declares a 1 for 5 reverse stock split.
After the reverse split, that company's treasury as well
outstanding shareholders will have 1/5 the number of shares or
there will be 1,000,000 shares issued and outstanding. Accordingly,
the market capitalization and total shareholder value will remain
unchanged but with market price of $0.05 per share or
$50,000. If an individual investor owned 5,000 shares of that
company before the split at $0.01 per share valued at $500, he or
she will own 1,000 shares at $0.05 after the split with the exact
same value of $500. The investor 's basis in the stock is neither
better nor worse, except that such company hopes the higher stock
price will attract more investors to the benefit of the
shareholders. There is no assurance that that company’s stock price
will rise in value after a reverse split or that suitable investors
will emerge.
The
Board believes that the Reverse Stock Split may improve the price
level of our Common Stock and that the higher share price could
help generate interest in the Company among investors and other
business opportunities. However, the effect of the reverse split
upon the market price for our Common Stock cannot be predicted, and
the history of similar stock split combinations for companies in
like circumstances is varied. There can be no assurance that the
market price per share of our Common Stock after the reverse split
will rise in proportion to the increase in the number of shares of
Common Stock outstanding resulting from the reverse split. The
market price of our Common Stock may also be based on our
performance and other factors, some of which may be unrelated to
the number of shares outstanding.
The
reverse split will affect all of our stockholders uniformly and
will not affect any stockholder’s percentage ownership interests in
the Company or proportionate voting power, except to the extent
that the reverse split results in any of our stockholders owning a
fractional share. All stockholders holding a fractional share shall
be issued an additional share. The principal effect of the Reverse
Stock Split will be that the number of shares of Common Stock
issued and outstanding will be reduced from the shares of Common
Stock outstanding to a specified number of shares of Common Stock,
pursuant to the specific Reverse Stock Split Ratio determined by
our Board. The Reverse Stock Split will affect the shares of common
stock outstanding. The Reverse Stock Split will not affect the par
value of our Common Stock. As a result, on the effective date of
the Reverse Stock Split, the stated capital on our balance sheet
attributable to our Common Stock will be reduced to less than the
present amount, and the additional paid-in capital account shall be
credited with the amount by which the stated capital is reduced.
The per share net income or loss and net book value of our Common
Stock will be increased because there will be fewer shares of our
Common Stock outstanding.
The
Reverse Stock Split will not change the proportionate equity
interests of our stockholders, nor will the respective voting
rights and other rights of stockholders be altered. The Common
Stock issued pursuant to the Reverse Stock Split will remain fully
paid and non-assessable. The Reverse Stock Split is not intended
as, and will not have the effect of, a “going private transaction”
covered by Rule 13e-3 under the Securities Exchange Act of 1934. We
will continue to be subject to the periodic reporting requirements
of the Securities Exchange Act of 1934.
Stockholders should
recognize that they will own fewer numbers of shares than they
presently own (a number equal to the number of shares owned
immediately prior to the filing of the Reverse Stock Split
amendment divided by a number specific to the Stock Split Ratio).
While we expect that the Reverse Stock Split will result in an
increase in the potential market price of our Common Stock, there
can be no assurance that the Reverse Stock Split will increase the
potential market price of our Common Stock (which is dependent upon
many factors, including our performance and prospects). Also,
should the market price of our Common Stock decline, the percentage
decline as an absolute number and as a percentage of our overall
market capitalization may be greater than would pertain in the
absence of a reverse split. Furthermore, the possibility exists
that potential liquidity in the market price of our Common Stock
could be adversely affected by the reduced number of shares that
would be outstanding after the reverse split. In addition, the
Reverse Split will increase the number of stockholders of the
Company who own odd lots (less than 100 shares). Stockholders who
hold odd lots typically will experience an increase in the cost of
selling their shares, as well as possible greater difficulty in
effecting such sales. Consequently, there can be no assurance that
the reverse split will achieve the desired results that have been
outlined above.
Background
and Reasons for the Reverse Stock Split; Potential Consequences of
the Reverse Stock Split
The
Company currently does not have any plans, arrangements or
understandings, written or oral, to issue any of the authorized but
unissued shares that would become available as a result of the
Reverse Stock Split. In addition to increasing the market price of
our Common Stock, the Reverse Stock Split would also reduce certain
of our costs, as discussed below. Accordingly, for these and other
reasons discussed below, we believe that effecting the Reverse
Stock Split is in the Company’s and our Stockholders’ best
interests.
Reducing
the number of outstanding shares of our Common Stock should, absent
other factors, increase the per share market price of our Common
Stock, although we cannot provide any assurance that the post
reverse stock split price would remain following the Reverse Stock
Split.
Reducing
the number of outstanding shares of our Common Stock through the
Reverse Stock Split is intended, absent other factors, to increase
the per share market price of our Common Stock. However, other
factors, such as our financial results, market conditions and the
market perception of our business may adversely affect the market
price of our Common Stock. As a result, there can be no assurance
that the Reverse Stock Split, if completed, will result in the
intended benefits described above, that the market price of our
Common Stock will increase following the Reverse Stock Split or
that the market price of our Common Stock will not decrease in the
future. Additionally, we cannot assure you that the market price
per share of our Common Stock after a Reverse Stock Split will
increase in proportion to the reduction in the number of shares of
our Common Stock outstanding before the Reverse Stock Split.
Accordingly, the total market capitalization of our Common Stock
after the Reverse Stock Split may be lower than the total market
capitalization before the Reverse Stock Split.
Procedure
for Implementing the Reverse Stock Split
The
Reverse Stock Split would become effective upon the filing of the
Amendment with the Secretary of State of the State of Nevada, which
filing is contingent upon approval of the Reverse Stock Split by
FINRA.
Effect
of the Reverse Stock Split on Holders of Outstanding Common
Stock
As of
March 9, 2020, there were 310,128,893 shares outstanding.
Depending on the ratio for the Reverse Stock Split determined by
our board of directors, a minimum of 15 and a maximum of 50 shares
of existing Common Stock will be combined into one new share of
Common Stock. The table below shows, as of March 9, 2020, the
number of outstanding shares of Common Stock that would result from
the listed hypothetical Reverse Stock Split ratios (without giving
effect to the treatment of fractional shares). The actual number of
shares issued after giving effect to the Reverse Stock Split, if
implemented, will depend on the Reverse Stock Split ratio that is
ultimately determined by our Board.
The
actual number of shares issued after giving effect to the Reverse
Stock Split, if implemented, will depend on the Reverse Stock Split
ratio that is ultimately determined by our Board.
The
Reverse Stock Split will affect all holders of our Common Stock
uniformly and will not affect any Stockholder’s percentage
ownership interest in the Company, except that as described below
in “Fractional Shares,” record holders of Common Stock otherwise
entitled to a fractional share as a result of the Reverse Stock
Split will be rounded up to the next whole number. In addition, the
Reverse Stock Split will not affect any Stockholder’s proportionate
voting power (subject to the treatment of fractional
shares).
The
implementation of the Reverse Stock Split will result in an
increased number of available authorized shares of Common Stock.
The resulting increase in such availability in the authorized
number of shares of Common Stock could have a number of effects on
the Company’s Stockholders depending upon the exact nature and
circumstances of any actual issuances of authorized but unissued
shares. The increase in available authorized shares for issuance
could have an anti-takeover effect, in that additional shares could
be issued (within the limits imposed by applicable law) in one or
more transactions that could make a change in control or takeover
of the Company more difficult. For example, additional shares could
be issued by the Company so as to dilute the stock ownership or
voting rights of persons seeking to obtain control of the Company,
even if the persons seeking to obtain control of the Company offer
an above-market premium that is favored by a majority of the
independent stockholders. Similarly, the issuance of additional
shares to certain persons allied with the Company’s management
could have the effect of making it more difficult to remove the
Company’s current management by diluting the stock ownership or
voting rights of persons seeking to cause such removal. Apart from
our Class B shares, the Company does not have any other provisions
in its Articles of Incorporation, Bylaws, employment agreements,
credit agreements or any other documents that have material
anti-takeover consequences. Additionally, the Company has no plans
or proposals to adopt other provisions or enter into other
arrangements that may have material anti-takeover consequences. The
Board is not aware of any attempt, or contemplated attempt, to
acquire control of the Company, and this proposal is not being
presented with the intent that it be utilized as a type of anti-
takeover device.
Additionally,
because holders of Common Stock have no preemptive rights to
purchase or subscribe for any unissued stock of the Company, the
issuance of additional shares of authorized Common Stock that will
become newly available as a result of the implementation of the
Reverse Stock Split will reduce the current Stockholders’
percentage ownership interest in the total outstanding shares of
Common Stock.
The
Company may issue the additional shares of authorized Common Stock
that will become available as a result of the Reverse Stock Split
without the additional approval of its Stockholders.
The
Reverse Stock Split may result in some Stockholders owning “odd
lots” of less than 100 shares of Common Stock. Odd lot shares may
be more difficult to sell, and brokerage commissions and other
costs of transactions in odd lots are generally somewhat higher
than the costs of transactions in “round lots” of even multiples of
100 shares.
After
the Effective Time, our Common Stock will have new Committee on
Uniform Securities Identification Procedures (CUSIP) numbers, which
is a number used to identify our equity securities, and stock
certificates with the older CUSIP numbers will need to be exchanged
for stock certificates with the new CUSIP numbers by following the
procedures described below. After the Reverse Stock Split, we will
continue to be subject to the periodic reporting and other
requirements of the Securities Exchange Act of 1934, as amended.
Our Common Stock will continue to be listed on the OTC Markets Pink
under the symbol “WDLF.”
Beneficial
Holders of Common Stock (i.e. Stockholders who hold in street
name)
Upon
the implementation of the Reverse Stock Split, we intend to treat
shares held by Stockholders through a bank, broker, custodian or
other nominee in the same manner as registered Stockholders whose
shares are registered in their names. Banks, brokers, custodians or
other nominees will be instructed to effect the Reverse Stock Split
for their beneficial holders holding our Common Stock in street
name. However, these banks, brokers, custodians or other nominees
may have different procedures than registered Stockholders for
processing the Reverse Stock Split. Stockholders who hold shares of
our Common Stock with a bank, broker, custodian or other nominee
and who have any questions in this regard are encouraged to contact
their banks, brokers, custodians or other nominees.
Registered
“Book-Entry” Holders of Common Stock (i.e. Stockholders that are
registered on the transfer agent’s books and records but do not
hold stock certificates)
Certain
of our registered holders of Common Stock may hold some or all of
their shares electronically in book-entry form with the transfer
agent. These Stockholders do not have stock certificates evidencing
their ownership of the Common Stock. They are, however, provided
with a statement reflecting the number of shares registered in
their accounts.
Stockholders
who hold shares electronically in book-entry form with the transfer
agent will not need to take action (the exchange will be automatic)
to receive whole shares of post-Reverse Stock Split Common Stock,
subject to adjustment for treatment of fractional
shares.
Holders
of Certificated Shares of Common Stock
Until
surrendered, we will deem outstanding certificates representing
shares of our Common Stock (the “Old Certificates”) held by
Stockholders to be cancelled and only to represent the number of
whole shares of post-Reverse Stock Split Common Stock to which
these Stockholders are entitled, subject to the treatment of
fractional shares. Any Old Certificates submitted for exchange,
whether because of a sale, transfer or other disposition of stock,
will automatically be exchanged for certificates representing the
appropriate number of whole shares of post-Reverse Stock Split
Common Stock (the “New Certificates”). If an Old Certificate has a
restrictive legend on the back of the Old Certificate(s), the New
Certificate will be issued with the same restrictive legends that
are on the back of the Old Certificate(s).
STOCKHOLDERS
SHOULD NOT DESTROY ANY STOCK CERTIFICATE(S) AND SHOULD NOT SUBMIT
ANY STOCK CERTIFICATE(S) UNTIL REQUESTED TO DO SO.
Fractional
Shares
We do
not currently intend to issue fractional shares in connection with
the Reverse Stock Split. Therefore, we will not issue certificates
representing fractional shares. In lieu of issuing fractions of
shares, we will round up to the next whole number.
Effect
of the Reverse Stock Split on Employee Plans, Options, Restricted
Stock Awards and Units, Warrants, and Convertible or Exchangeable
Securities
Based
upon the Reverse Stock Split ratio determined by the Board,
proportionate adjustments are generally required to be made to the
per share exercise price and the number of shares issuable upon the
exercise or conversion of all outstanding options, warrants,
convertible or exchangeable securities entitling the holders to
purchase, exchange for, or convert into, shares of Common Stock.
This would result in approximately the same aggregate price being
required to be paid under such options, warrants, convertible or
exchangeable securities upon exercise, and approximately the same
value of shares of Common Stock being delivered upon such exercise,
exchange or conversion, immediately following the Reverse Stock
Split as was the case immediately preceding the Reverse Stock
Split. The number of shares deliverable upon settlement or vesting
of restricted stock awards will be similarly adjusted, subject to
our treatment of fractional shares. The number of shares reserved
for issuance pursuant to these securities will be proportionately
based upon the Reverse Stock Split ratio determined by the Board,
subject to our treatment of fractional shares.
Accounting
Matters
The
proposed amendment to the Company’s Articles of Incorporation, as
amended, will not affect the par value of our Common Stock per
share, which will remain $0.001 par value per share. As a result,
as of the Effective Time, the stated capital attributable to Common
Stock and the additional paid-in capital account on our balance
sheet will not change due to the Reverse Stock Split. Reported per
share net income or loss will be higher because there will be fewer
shares of Common Stock outstanding.
Certain
Federal Income Tax Consequences of the Reverse Stock
Split
The
following summary describes certain material U.S. federal income
tax consequences of the Reverse Stock Split to holders of our
Common Stock:
Unless
otherwise specifically indicated herein, this summary addresses the
tax consequences only to a beneficial owner of our Common Stock
that is a citizen or individual resident of the United States, a
corporation organized in or under the laws of the United States or
any state thereof or the District of Columbia or otherwise subject
to U.S. federal income taxation on a net income basis in respect of
our Common Stock (a “U.S. holder”). A trust may also be a U.S.
holder if (1) a U.S. court is able to exercise primary supervision
over administration of such trust and one or more U.S. persons have
the authority to control all substantial decisions of the trust or
(2) it has a valid election in place to be treated as a U.S.
person. An estate whose income is subject to U.S. federal income
taxation regardless of its source may also be a U.S. holder. This
summary does not address all of the tax consequences that may be
relevant to any particular investor, including tax considerations
that arise from rules of general application to all taxpayers or to
certain classes of taxpayers or that are generally assumed to be
known by investors. This summary also does not address the tax
consequences to (i) persons that may be subject to special
treatment under U.S. federal income tax law, such as banks,
insurance companies, thrift institutions, regulated investment
companies, real estate investment trusts, tax-exempt organizations,
U.S. expatriates, persons subject to the alternative minimum tax,
traders in securities that elect to mark to market and dealers in
securities or currencies, (ii) persons that hold our Common Stock
as part of a position in a “straddle” or as part of a “hedging,”
“conversion” or other integrated investment transaction for federal
income tax purposes, or (iii) persons that do not hold our Common
Stock as “capital assets” (generally, property held for
investment).
If a
partnership (or other entity classified as a partnership for U.S.
federal income tax purposes) is the beneficial owner of our Common
Stock, the U.S. federal income tax treatment of a partner in the
partnership will generally depend on the status of the partner and
the activities of the partnership. Partnerships that hold our
Common Stock, and partners in such partnerships, should consult
their own tax advisors regarding the U.S. federal income tax
consequences of the Reverse Stock Split.
This
summary is based on the provisions of the Internal Revenue Code of
1986, as amended, U.S. Treasury regulations, administrative rulings
and judicial authority, all as in effect as of the date of this
proxy statement. Subsequent developments in U.S. federal income tax
law, including changes in law or differing interpretations, which
may be applied retroactively, could have a material effect on the
U.S. federal income tax consequences of the Reverse Stock
Split.
PLEASE
CONSULT YOUR OWN TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE,
LOCAL, AND FOREIGN INCOME AND OTHER TAX CONSEQUENCES OF THE REVERSE
STOCK SPLIT IN YOUR PARTICULAR CIRCUMSTANCES UNDER THE INTERNAL
REVENUE CODE AND THE LAWS OF ANY OTHER TAXING
JURISDICTION.
U.S.
Holders
The
Reverse Stock Split should be treated as a recapitalization for
U.S. federal income tax purposes. Therefore, a Stockholder
generally will not recognize gain or loss on the Reverse Stock
Split, except to the extent of cash, if any, received in lieu of a
fractional share interest in the post-Reverse Stock Split shares.
The aggregate tax basis of the post-split shares received will be
equal to the aggregate tax basis of the pre-split shares exchanged
therefore (excluding any portion of the holder’s basis allocated to
fractional shares), and the holding period of the post-split shares
received will include the holding period of the pre-split shares
exchanged. A holder of the pre-split shares who receives cash will
generally recognize gain or loss equal to the difference between
the portion of the tax basis of the pre-split shares allocated to
the fractional share interest and the cash received. Such gain or
loss will be a capital gain or loss and will be short term if the
pre-split shares were held for one year or less and long term if
held more than one year. No gain or loss will be recognized by us
as a result of the Reverse Stock Split.
No
Appraisal Rights
Under
Florida law and our charter documents, holders of our Common Stock
will not be entitled to dissenter’s rights or appraisal rights with
respect to the Reverse Stock Split.
BACKGROUND
– BUSINESS
We
license our Social Life Network SaaS (Software as a Service)
Internet Platform (hereafter referred to as the “Platform”) to
niche industries for an annual license fee and/or a percentage of
profits. Our Platform is a cloud-based social network and
E-Commerce system that can be accessed by a web browser or mobile
application that allows end-users to socially connect with one
another and their customers to market and advertise their products
and services. The Platform can be customized to suit virtually any
international niche industry or sub-culture, such as hunting and
fishing, tennis, real estate professionals, health and fitness, and
charity causes. Our wholly owned subsidiary, MjLink.com, Inc.
(“MjLink”) owns and operates cannabis and hemp industry Platforms
through MjLink from which we generate advertising and digital
subscription revenue. MjLink also includes an event division that
will provide many industry tradeshows and conferences to its vast
audience of platform members, the majority of which use MjLink.com
and WeedLife.com year-round.
We
have filed our Form 10-K for our fiscal year 2018 and our latest
quarterly report for our quarter ending September 30, 2019, both of
which may be accessed at sec.gov.
INFORMATION
ON CONSENTING STOCKHOLDER
Pursuant
to the Company’s Bylaws and the Nevada Statutes, a vote by the
holders of at least 51% of the outstanding voting capital of the
Company entitled to vote (the “Voting Shares”) is required to
effect the action described herein. As of March 9, 2020 the Company
had 310,128,893 voting shares issued and outstanding (the “Voting
Shares”) consisting of 310,128,893 common stock shares outstanding.
The Consenting Shareholder is the record and beneficial owner of
25,000,000 Class B shares equal to 2,500,000,000 votes common
shares of the Company’s common stock, which represents over 51% of
the Voting Shares. Pursuant to the Company’s Bylaws and the Nevada
Statutes, the Consenting Stockholder voted in favor of the
Corporate Actions described herein in a written stockholder consent
dated March 9, 2020. No consideration was paid for the consent. The
Consenting Stockholder’s name, affiliation, with the Company and
his beneficial holdings are as follows:
Name |
|
Affiliation |
|
Voting
Shares (2) |
|
|
Percentage |
|
Kenneth
Tapp |
|
Chairman/CEO/CTO/
Shareholder |
|
|
2,500,000,000 |
|
|
|
over 51 |
% |
DIRECTORS
AND EXECUTIVE OFFICERS
Directors
and Executive Officers
All
directors of our company hold office until the next annual meeting
of our stockholders or until their successors have been elected and
qualified, or until their death, resignation or removal. The
executive officers of our company are appointed by our board of
directors and hold office until their death, resignation or removal
from office.
Our
directors and executive officers, their ages, positions held, and
duration of such, are as follows:
Name |
|
Position
Held with Our Company |
|
Age |
|
Date
First Elected or Appointed |
Kenneth
S. Tapp |
|
Chairman,
Chief Executive Officer & Chief Technology Officer |
|
49 |
|
June
6, 2016 |
Mark
DiSiena |
|
Chief
Financial Officer & Chief Accounting Officer |
|
53 |
|
November
1, 2018 |
Britt
Glassburn |
|
Director |
|
52 |
|
January
21, 2010 |
Brian
Lazarus |
|
Director |
|
63 |
|
January
21, 2010 |
Todd
Markey |
|
Director |
|
34 |
|
January
21, 2010 |
Lynn
Murphy |
|
Director |
|
56 |
|
January
21, 2010 |
Business
Experience
The
following is a brief account of the education and business
experience of directors and executive officers during at least the
past five years, indicating their principal occupation during the
period, and the name and principal business of the organization by
which they were employed:
Kenneth
S. Tapp, Chairman of the Board, Chief Executive Officer, Chief
Technology Officer
Ken
Tapp has served as our Chief Executive Officer/Chairman/Chief
Technology Officer since our inception in June 2016 and prior to,
since January 2013, as the private company, Social Life Network
(f/k/a Life Marketing, Inc.). Ken Tapp was the Vice President of
Engineering at HomeBuilder.com & Realtor.com from 1996 through
their IPO in August of 1999. Ken Tapp went on to launch one of the
largest and most successful real estate industry SaaS platforms,
that was used by as many as 1,300,000 real estate offices and
57,000 home builders from 2001 through 2011 in the US, Australia,
New Zealand, Canada and the United Kingdom. The SaaS platform
provided listing data access to companies like Trulia, Zillow, News
Corp, Gannett, Clear Channel, Realtor.com, and many other digital
media outlets until Ken Tapp sold the company in late
2011.
Mark
DiSiena, Chief Financial Officer & Chief Accounting
Officer
Mark
DiSiena joined the executive team on August 1, 2018 and effective
November 1, 2018 was appointed as our Chief Financial Officer and
Chief Accounting Officer. Prior joining Social Life Network, Mr.
DiSiena was a consultant at Cresset Advisors from January 2016 to
October 2018. Previously, Mr. DiSiena served in related leadership
roles, including: Chief Financial Officer of Cherokee, Inc (NASDAQ:
CHKE) from November 2010 to March 2013; and Chief Financial Officer
at 4Medica, a privately held software company, between March 2004
to November 2008. He was an Account Executive at Oracle-NetSuite
from January 2014 to December 2015. Mr. DiSiena has held senior
management positions at LVMH from 1999 to 2000 and at Lucent
Technologies from 1995 to 1999. Mr. DiSiena has consulted at
various companies, notably: Cetera Financial Group, Countrywide
Bank, American Apparel, Dreamworks, Paramount Pictures, and
HauteLook. He began his career as an auditor at Coopers &
Lybrand, from 1988 to 1990. Mr. DiSiena holds a B.S. in Accounting
with honors from New York University, a J.D. from Vanderbilt
University, and an M.B.A. from Stanford University; and is both an
attorney and a CPA.
Britt
Glassburn, Director
Britt
Glassburn was appointed as our Director on January 21, 2020. Britt
Glassburn has spent nearly 30 years in the residential real estate
industry, over the past six years focusing her attention to
increasing the business acumen of real estate professionals through
best-in-class technology tools and industry specific coaching. As
the Chief Executive Officer of Social Life Network’s licensee,
LikeRE.com, her focus is to ensure online success by real estate
professionals through technology development.
Brian
Lazarus, Director
Brian
Lazarus was appointed as our Director on January 21, 2020. Brian
Lazarus has spent over 40 years producing notable entertainment and
experiential events with specialized skills at professional audio,
video and digital tech. He is the co-founder and Executive Vice
President of Media Star Promotions, one of the nation’s top
branding, touring and strategic marketing agencies. His expertise
in the design and execution of consumer experiences for regulated
products blends seamlessly with the goals of the burgeoning
cannabis space. Brian Lazarus is committed to increasing the depth
of services provided by Social Life Network, MjLink, and its
affiliates.
Todd
Markey, Director
Todd
Markey was appointed as our Director on January 21, 2020. Since
April 1, 2019, Todd Markey has been the president of the MjMicro division of
MjLink and
directs the MjMicro events. Todd Markey has more than 10 years of
finance and capital markets experience and is a trusted expert for
micro-cap to small cap companies in expanding their investor and
public relations. Additionally, he has assisted companies in the
pre-IPO and up-listing process, from the OTC markets onto Nasdaq
and NYSE stock exchanges.
Lynn
Murphy, Director
Lynn
Murphy was appointed as our Director on January 21, 2020. Lynn
Murphy has specialized in sales and marketing as the founder and
owner of several companies over the past 30 years. With an MBA and
extensive C Suite level negotiations experience, he has grown
companies from start-up to multi-million-dollar revenue generators.
As the CEO of our licensee, Sports Social Network, and as our
Director, Lynn Murphy combines his lifetime passion and involvement
in hunting, fishing, and outdoorsmanship along with his skill sets
in directing the technology needed to bring Sports Social Network
divisions to the public markets, and providing us with a vital
asset.
Changes
in Control
We
are unaware of any contract or other arrangement the operation of
which may at a subsequent date result in a change in control of our
company.
EXECUTIVE
COMPENSATION
The
particulars of compensation paid to the following
persons:
|
(a) |
all
individuals serving as our principal executive officer during the
year ended December 31, 2018; |
|
|
|
|
(b) |
each
of our two most highly compensated executive officers who were
serving as executive officers at the end of the year ended December
31, 2018; and |
who
we will collectively refer to as the named executive officers, for
all services rendered in all capacities to our company and
subsidiaries for the years ended December 31, 2018 and December 31,
2017 are set out in the following summary compensation
table:
Summary
Compensation Table |
Name and
Principal Position |
|
Year |
|
|
Salary
($) |
|
|
Bonus
($) |
|
|
Stock
Awards
($) |
|
|
Option
Awards
($) |
|
|
Non-Equity
Incentive
Plan
Compensation
($) |
|
|
Nonqualified
Deferred
Compensation
Earnings
($) |
|
|
All Other
Compensation
($) |
|
|
Total
($) |
|
Kenneth
Tapp(1) |
|
|
2018 |
(5) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Chairman, Chief
Executive Officer, and Chief Technology Officer |
|
|
2017 |
(6) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Mark
DiSiena(2) |
|
|
2018 |
(5) |
|
|
26,500 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26,500 |
|
Chief Financial
Officer |
|
|
2017 |
(6) |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Andrew
Rodosevich(3) |
|
|
2018 |
(5) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Former-Chief Financial
Officer/Director |
|
|
2017 |
(6) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
D.
Scott Karnedy(4) |
|
|
2018 |
(5) |
|
|
60,000 |
|
|
|
- |
|
|
|
75,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
135,000 |
|
Former-Chief Operating
Officer/Director |
|
|
2017 |
(6) |
|
|
- |
|
|
|
- |
|
|
|
75,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
75,000 |
|
George
Jage |
|
|
2017 |
(5)(7) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Former-Chief Operating
Officer/ Director |
|
|
2018 |
(6)(7) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Todd
Markey |
|
|
2017 |
(5)(8) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Director of Investor
Relations/ Director |
|
|
2018 |
(6)(8) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
(1) |
Mr.
Tapp was appointed as Chief Executive Officer, Chief Technology
Officer, and Chairman since June 6, 2016. And was Chief Financial
Officer from August 1, 2018 thru October 31, 2018. For fiscal year
ending 2019, Mr. Tapp is expected to earn zero dollars of executive
compensation. |
(2) |
Mr.
DiSiena was appointed as Chief Financial Officer on November 1,
2018, after being our consult from August 1, 2018 through October
31, 2018. For fiscal year ending 2019, Mr. DiSiena is expected to
earn $120,000 of executive compensation. |
(3) |
Mr.
Rodosevich was appointed as Chief Financial Officer since June 6,
2016, which he resigned from that position effective July 31,
2018. |
(4) |
Mr.
Karnedy became our Chief Operating Officer in October 2017 and was
appointed a director of our Company on August 1, 2018; he resigned
as our Chief Operating Officer/Director on May 10,
2019. |
(5) |
Year
ended December 31, 2017. |
(6) |
Year
ended December 31, 2018. |
(7) |
Mr.
Jage did not commence his employment until January 2,
2019. |
(8) |
Mr.
Markey did not commence his employment until April 1, 2019. For
fiscal year ending 2019, Mr. Markey is expected to earn $56,667 of
compensation and $500 per month for healthcare
benefits. |
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
Other
than as disclosed below, there has been no transaction, since
January 1, 2020, or currently proposed transaction, in which our
company was or is to be a participant and the amount involved
exceeds $5,000, being the lesser of $120,000 or one percent of our
total assets at December 31, 2018, and in which any of the
following persons had or will have a direct or indirect material
interest:
|
(a) |
any
director or executive officer of our company; |
|
(b) |
any
person who beneficially owns, directly or indirectly, more than 5%
of any class of our voting securities; |
|
(c) |
any
person who acquired control of our company when it was a shell
company or any person that is part of a group, consisting of two or
more persons that agreed to act together for the purpose of
acquiring, holding, voting or disposing of our common stock, that
acquired control of our company when it was a shell company;
and |
|
(d) |
any
member of the immediate family (including spouse, parents,
children, siblings and in- laws) of any of the foregoing
persons. |
We
have software license agreements with Real Estate Social Network,
Inc. and Sports Social Network, which provides that our licensees
pay us a license fee of $125,000 per year or a period of two years
and thereafter receive a 20% percentage of profits. Our Chief
Executive Office, Kenneth Tapp owns 46.6% of our outstanding shares
and is also the Chief Technology Officer of Real Estate Social
Network and Sports Social Network and owns approximately 40% each
of those entities through LVC Consulting, LLC, of which he is the
only member. Our Chief Financial Officer, Andrew Rodosevich, owns
11.5% of our outstanding shares and is a Managing Member of Real
Estate Social Network and Sports Social Network and owns
approximately 10% of those entities through Rodosevich Investments,
LLC, of which Andrew Rodosevich is the sole member. During our
Fiscal Year 2018, our largest source of our revenues was $215,000
in social network platform licensing revenues, which constituted
97.5% of our total revenues, which were derived solely from the
only 2 licensees we have agreements with, the Real Estate Social
Network and Sports Social Network, which revenues are related party
revenues.
Pricing
for the license agreements were negotiated with the Chief Executive
Officers of Real Estate Social Network and Sports Social Network
using a “Royalty Flex-Rate” method per network end-user. Our Chief
Executive Officer and prior-Chief Financial Officer represented us
in the negotiations with Real Estate Social Network and Sports
Social Network in our negotiations involving the license
agreements.
This
type of licensing is the standard when licensing intellectual
property per users. The rates were determined by existing users in
the Sports Social Network, and future predicted users in the Real
Estate Social Network. We researched competing Social Network
licensing platforms for pricing and features, and determined that
the most similar to our Network Platform was SocialShared.com
(https://www.socialshared.com/plans.html), which currently provides
the United States Tennis Association with their own social network
(Setteo.com) for $2.25 per month per end-user, a competitor to the
Sports Social Network, Inc. website, RacketStar.com
Our
related party revenue for Fiscal Year 2018 was $215,000 or 97.5% of
gross revenue. As of March 31, 2019, our largest source of our
revenues was $25,000 for the first quarter in social network
platform licensing revenues, which constituted 90.9% of our total
revenues.
On
June 6, 2016, we issued 59,736,667 common stock shares to LVC
Consulting, LLC. The shares are valued at $0.15, the closing stock
price on the date of grant, for total non-cash expense of
$8,960,500. The Managing Member of LVC Consulting is our Chief
Executive Officer, Kenneth Tapp.
On
June 6, 2016, we issued 59,736,667 common stock shares to
Rodosevich Investments, LLC. The shares are valued at $0.15, the
closing stock price on the date of grant, for total non-cash
expense of $8,960,500. 50,000,000 of these shares were returned to
the Company on December 7, 2017. On December 14, we issued
5,000,000 restricted common stock shares to Rodosevich Investments,
LLC. The shares are valued at $0.13, the closing stock price on the
date of grant, for total non-cash expense of $650,000. The Managing
Member of Rodosevich Investments is our prior-Chief Financial
Officer, Andrew Rodosevich.
On
July 18, 2016, we executed a Note Payable with Andrew Rodosevich,
the Company’s CFO, for $26,400 to pay for public company expenses.
The note is unsecured, non-interest bearing and due December 31,
2019. As of December 31, 2018, the balance is zero dollars
due.
On
September 1, 2016, we executed a Note Payable with Like RE, Inc.
for $53,000. Kenneth Tapp, our Chief Executive Officer also an
officer with Like RE, Inc. The note is unsecured, non-interest
bearing and due December 31, 2018. As of December 31, 2018, the
balance is zero dollars due.
On
November 1, 2018, the Company authorized the issuance of 500,000
restricted common stock shares to Mark DiSiena, Chief Financial
Officer, for his CFO services. The shares are valued at $0.10 the
closing stock price on the date of grant, for total non-cash
expense of $50,000. On February 6, 2019, we authorized an
additional 500,000 restricted common stock shares to Mark DiSiena,
our Chief Financial Officer valued at $50,000. The 1,000,000 shares
were issued during the three months ended March 31, 2019. For
fiscal year ending 2019, Mr. DiSiena is expected to earn $120,000
of executive compensation.
During
fiscal year 2019, the Company authorized the issuance of 1,000,000
restricted common stock shares to Todd Markey, Director of Investor
Relations, for his services. The shares are valued at $0.10 the
closing stock price on the date of grant, for total non-cash
expense of $500,000. Mr. Markey is expected to earn $56,667 of
compensation.
WHERE
YOU CAN OBTAIN ADDITIONAL INFORMATION
WHERE
YOU CAN FIND MORE INFORMATION
This
Information Statement refers to certain documents that are not
presented herein or delivered herewith. Such documents are
available to any person, including any beneficial owner of our
shares, to whom this Information Statement is delivered upon oral
or written request, without charge.
We
file annual and special reports and other information with the SEC.
Certain of our SEC filings are available over the Internet at the
SEC’s web site at http://www.sec.gov. You may also read and copy
any document we file with the SEC at its public reference
facilities:
Public
Reference Room Office
100 F
Street, N.E.
Room
1580
Washington,
D.C. 20549
You
may also obtain copies of the documents at prescribed rates by
writing to the Public Reference Section of the SEC at 100 F Street,
N.E., Room 1580, Washington, D.C. 20549. Callers in the United
States can also call 1-202-551-8090 for further information on the
operations of the public reference facilities.
|
SOCIAL
LIFE NETWORK, INC. |
|
|
|
|
By: |
/s/
Ken Tapp |
|
|
Ken
Tapp, CEO |
Appendix
A
Certificate
of Amendment to Articles of Incorporation
For
Nevada Profit Corporations
1.
Name of Corporation:
Social
Life Network, Inc. Inc.
2.
The Articles of Incorporation have been amended as
follows:
ARTICLE
4
AUTHORIZED
SHARES
Authorized
Capital Stock. The maximum number of shares of capital stock that
this Corporation is authorized to have outstanding at any one time
is Ten Billion Four Hundred Million (10,400,000,000) shares, par
value $0.001. The 10,400,000,000 shares of $0.001 par value capital
stock of the Corporation shall be designated as follows:
|
● |
10,000,000,000
Common Shares |
|
● |
300,000,000
Preferred Shares |
|
● |
100,000,000
Class B Common Shares |
The
Corporation’s Board of Directors is hereby authorized, by
resolution or resolutions thereof, to provide, out of unissued
shares of Preferred Stock, a series of Preferred Stock and, with
respect to each such series, to fix the number of shares
constituting such series, and the designation of such series, the
voting and other powers (if any) of the shares of such series, and
the preferences and relative, participating, optional or other
special rights and any qualifications, limitations or restrictions
thereof, of the shares of such series. The powers, preferences and
relative, participating, optional and other special rights and
series of Preferred Stock, and the qualifications, limitations or
restrictions thereof, may differ from those of any and all other
series of Preferred Stock at any time outstanding.
The
Corporation’s Board of Directors is hereby authorized, by
resolution or resolutions thereof, to provide, out of unissued
shares of Class B Common Shares, a series of Class B Common Shares
and, with respect to each such series, to fix the number of shares
constituting such series, and the designation of such series, the
voting and other powers (if any) of the shares of such series, and
the preferences and relative, participating, optional or other
special rights and any qualifications, limitations or restrictions
thereof, of the shares of such series. The powers, preferences and
relative, participating, optional and other special rights and
series of Class B Common Shares, and the qualifications,
limitations or restrictions thereof, may differ from those of any
and all other series of Class B Common Shares at any time
outstanding.
3.
The vote by which the stockholders holding shares in the
corporation entitling them to exercise at least a majority of the
voting power, or such greater proportion of the voting power as may
be required in the case of a vote by classes or series, or as may
be required by the provisions of the articles of incorporation have
voted in favor of the amendment is: over 51%.
4.
Effective date: (optional) Date: __Time: ____
5.
Signature:
_____________________________
Signature
of Officer
Appendix
B
Certificate
of Amendment to Articles of Incorporation
For
Nevada Profit Corporations
1.
Name of Corporation:
Social
Life Network, Inc.
2.
The articles of incorporation have been amended as
follows:
ARTICLE
IV
(AUTHORIZED
SHARES)
Authorized
Capital Stock. The maximum number of shares of capital stock that
this Corporation is authorized to have outstanding at any one time
is Ten Billion Four Hundred Million 10,400,000,000 shares, par
value $0.001. The 10,400,000,000 shares of $0.001 par value capital
stock of the Corporation shall be designated as follows:
|
● |
10,000,000,000
Common Shares |
|
● |
300,000,000
Preferred Shares |
|
● |
100,000,000
Class B Common Shares |
Upon
the filing and effectiveness (the “Effective Time”) this amendment
to the Corporation’s Articles of Incorporation, as amended, each
[*] shares of Common Stock issued and outstanding immediately prior
to the Effective Time either issued and outstanding or held by the
Corporation as treasury stock shall be combined into one (1)
validly issued, fully paid and non-assessable share of Common Stock
without any further action by the Corporation or the holder thereof
(the “Reverse Stock Split”); provided that no fractional shares
shall be issued to any holder and that instead of issuing such
fractional shares, the Corporation shall round shares up to the
nearest whole number. Each certificate that immediately prior to
the Effective Time represented shares of Common Stock (“Old
Certificates”), shall thereafter represent that number of shares of
Common Stock into which the shares of Common Stock represented by
the Old Certificate shall have been combined, subject to the
treatment of fractional shares as described above.
The
Corporation’s Board of Directors is hereby authorized, by
resolution or resolutions thereof, to provide, out of unissued
shares of Preferred Stock, a series of Preferred Stock and, with
respect to each such series, to fix the number of shares
constituting such series, and the designation of such series, the
voting and other powers (if any) of the shares of such series, and
the preferences and relative, participating, optional or other
special rights and any qualifications, limitations or restrictions
thereof, of the shares of such series. The powers, preferences and
relative, participating, optional and other special rights and
series of Preferred Stock, and the qualifications, limitations or
restrictions thereof, may differ from those of any and all other
series of Preferred Stock at any time outstanding.
The
Corporation’s Board of Directors is hereby authorized, by
resolution or resolutions thereof, to provide, out of unissued
shares of Class B Common Shares, a series of Class B Common Shares
and, with respect to each such series, to fix the number of shares
constituting such series, and the designation of such series, the
voting and other powers (if any) of the shares of such series, and
the preferences and relative, participating, optional or other
special rights and any qualifications, limitations or restrictions
thereof, of the shares of such series. The powers, preferences and
relative, participating, optional and other special rights and
series of Class B Common Shares, and the qualifications,
limitations or restrictions thereof, may differ from those of any
and all other series of Class B Common Shares at any time
outstanding.
3.
The vote by which the stockholders holding shares in the
corporation entitling them to Exercise at least a majority of the
voting power, or such greater proportion of the voting power
exercise at least 51% of the voting power, or such greater
proportion of the voting power as may be required in the case of a
vote by classes or series, or as may be required by the provisions
of the articles of incorporation have voted in favor of the
amendment is: over 51%
4.
Effective date and time of offering: (optional) Date:
Time:
5.
Signature:
_______________________________
Signature
of Officer