Item 8.01. Other Events
Auscrete Corporation held its latest board meeting at 10:00 AM on September 1st. 2019 at its corporate headquarters in Goldendale WA.
Topics for discussion were as follows:
Item 1. Current update of the move to the new manufacturing building and production machinery acquisition.
Item 2. Timing estimate of production commencement and projected output.
Item 3. Consider reduction of the Company’s Authorized Shares by 25%.
Item 4. Employment status.
Item 5. Financial state of the company.
1. Mr. Sprovieri reported that all equipment has been moved to the new building. All the casting tables have been mechanically refurbished and prepared for the powder-coat surface finish. The powder-coat heating and setting machine is in the final stage of construction and should be ready by next Thursday. (9/5) All other equipment has been restored and is ready for production.
The acquisition of the new Auscrete developed specialty equipment batcher, which includes a 50-ton cement silo, screw conveyors and blending machine, are nearing completion at the Chinese manufacturing facility where they are being built. The Company is waiting word on the actual container shipping date. Additional equipment such as metal benders and cutters for rebar manufacture have been ordered and are arriving as a separate shipment.
It was resolved that the Company use all available means to keep pressure on transportation.
2. Assuming the shipping container is dispatched within the next week to 10 days and shipping time should put the equipment in Auscrete’s hands by October 10th, Mr. Sprovieri believes that it will take around 2 weeks to assemble the equipment, install it and complete testing.
Given that timing, the company should be able to produce its first products by the last week of October. The first house is planned to be built in Goldendale, WA as the first of a group of eight houses required by one client, to be built in the Columbia Gorge area.
It was resolved that the Company will meet with the contractor to discuss use all possible means to ensure the earliest completion.
3. It was proposed that the Company reduce its Authorized shares number by around 25% as Auscrete does not require such a large number of shares to be on issue.
It was resolved to ask the Corporation’s lawyer to commence action to register the cut to the number of Authorized shares by 25%.
4. The Company has hired 2 more workers that have assisted in the move and final preparation of the equipment. This brings total employees to 6. Further staff will be needed once production starts.
5. At the time of this meeting, the Company still had the following debt.
Aged Convertible Notes due now $79,640 ($43.6K due now, $13K in Nov. $25K in Dec.)
New Convertible Debt $40,000 Due in February, 2020
Long Term Loan remaining $160,000 (not due until late 2020)
The Financial State Representation is as follows:
Cash at Bank74,393
Short Term Liabilities
Advances from Related Party5,953
Long term Liabilities
As stated above119,640