PART II – PRELIMINARY OFFERING CIRCULAR - FORM 1-A: TIER I
An Offering statement pursuant to Regulation A relating
to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering
Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the
Offering statement filed with the Securities and Exchange Commission
is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy
nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before
registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering
circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where
the Final Offering Circular or the Offering statement in which such Final Offering Circular was filed may be obtained.
PRELIMINARY OFFERING CIRCULAR
Dated: July 15, 2024
Subject to Completion
PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933
GOLD ENTERTAINMENT GROUP, INC.
2412 Irwin St.
Melbourne, FL 32901
Best Efforts Offering of up to Seven Billion (7,000,000,000) Shares of Common Stock
at a price of $0.00015 per Share
Minimum Investment: $15,000 (100,000,000 Shares)
Maximum Offering: $1,050,000
See The Offering - Page 9 and Securities
Being Offered - Page 44 For Further Details. This Offering Will Commence Upon Qualification of this Offering by the Securities
and Exchange Commission and Will Terminate 365 days from the date of qualification by the Securities And Exchange Commission, Unless
Extended or Terminated Earlier By The Issuer
PLEASE REVIEW ALL RISK FACTORS ON
PAGES 10 THROUGH PAGE 20 BEFORE MAKING AN INVESTMENT IN THIS COMPANY. AN INVESTMENT IN THIS COMPANY SHOULD ONLY BE MADE
IF YOU ARE CAPABLE OF EVALUATING THE RISKS AND MERITS OF THIS INVESTMENT AND IF YOU HAVE SUFFICIENT RESOURCES TO BEAR THE ENTIRE
LOSS OF YOUR INVESTMENT, SHOULD THAT OCCUR.
THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES
IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SELLING LITERATURE. THESE SECURITIES ARE OFFERED PURSUANT
TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE
SECURITIES OFFERED HEREUNDER ARE EXEMPT FROM REGISTRATION.
Because these securities are being offered on a “best
efforts” basis, the following disclosures are hereby made:
| |
Price to Public | |
Commissions (1) | |
Proceeds to Company (2) | |
Proceeds to Other Persons (3) |
Per Share | |
$ | 0.00015 | | |
$ | 0 | | |
$ | 0.00015 | | |
| None | |
Minimum Investment | |
$ | 15,000 | | |
$ | 0 | | |
$ | 15,000 | | |
| None | |
Maximum Offering | |
$ | 1,050,000 | | |
$ | 0 | | |
$ | 600,000 | | |
$ | 450,000 | |
| (1) | The Company shall pay no commissions to underwriters
for the sale of securities under this Offering. |
| | |
| (2) | Does not reflect payment of expenses of this Offering, which are estimated to not exceed $50,000.00 and which include, among other
things, legal fees, accounting costs, reproduction expenses, due diligence, marketing, consulting, administrative services other
costs of blue sky compliance, and actual out-of-pocket expenses incurred by the Company selling the Shares. This amount represents
the proceeds of the offering to the Company, which will be used as set out in “USE OF PROCEEDS TO ISSUER.” |
| | |
| (3) | There are no finder’s fees or other fees being paid to third parties from the proceeds of shares sold by the Company. The
Company shall receive no proceeds from the sale of 3,000,000,000 shares, nor the one hundred thousand PREFERRED SERIES B (100,000) convertible shares, being offered by the Selling Shareholders. |
This Offering (the “Offering”)
consists of Common Stock (the “Shares” or individually, each a “Share”) that is being offered on a “best
efforts” basis, which means that there is no guarantee that any minimum amount will be sold. The Shares are being offered
and sold by Gold Entertainment Group, Inc. a Wyoming Corporation (the “Company”) and certain shareholders of the Company (the
“Selling Shareholders”). There are 4,000,000,000 Shares being offered by the Company at a price of $0.00015 per Share with
a minimum purchase of 100,,000,000 shares per investor. We may waive the minimum purchase requirement on a case-by-case basis in our
sole discretion. There are an additional 3,000,000,000 shares of Common Stock being offered and a further one hundred thousand PREFERRED SERIES B (100,000) convertible shares by the Selling Shareholders. Under Rule 251(d)(2)(i)(C) of Regulation of Regulation A+, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser’s revenue or net assets (as of the purchaser’s most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed
10% of the greater of the purchaser’s annual income or net worth (please see below on how to calculate your net worth). The maximum aggregate amount of the Shares offered 7,000,000,000 Shares of Common Stock, and a further one hundred thousand PREFERRED SERIES B (100,000) convertible shares, is one million and fifty-thousand dollars ($1,050,000). There is no minimum number of Shares
that needs to be sold in order for funds to be released to the Company and for this Offering to close. The Company will retain all proceeds received from the shares sold on their account in this offering. The Company will not receive any proceeds from sales by the Selling Shareholders.
Our Common Stock is currently quoted
on the OTC Pink tier of the OTC Market Group, Inc. under the symbol “GEGP” On July 15, 2024, the last reported sale price of our common stock was $0.0002 (made on July 11, 2024).
The Shares are being offered pursuant
to Regulation A of Section 3(b) of the Securities Act of 1933, as amended, for Tier I offerings. The Shares will only be issued
to purchasers who satisfy the requirements set forth in Regulation A. The offering is expected to expire on the first of: (i) all
of the Shares offered are sold; or (ii) the close of business 365 days from the date of qualification by the Commission, unless
sooner terminated or extended by the Company’s CEO. Pending each closing, payments for the Shares will be paid directly to
the Company. Funds will be immediately transferred to the Company where they will be available for use in the operations of the
Company’s business in a manner consistent with the “USE OF PROCEEDS TO ISSUER” in this Offering Circular.
THIS OFFERING CIRCULAR DOES NOT CONSTITUTE
AN OFFER OR SOLICITATION IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION WOULD BE UNLAWFUL. NO PERSON HAS BEEN AUTHORIZED
TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS CONCERNING THE COMPANY OTHER THAN THOSE CONTAINED IN THIS OFFERING CIRCULAR,
AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON.
PROSPECTIVE INVESTORS ARE NOT TO
CONSTRUE THE CONTENTS OF THIS OFFERING CIRCULAR, OR OF ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS EMPLOYEES,
AGENTS OR AFFILIATES, AS INVESTMENT, LEGAL, FINANCIAL OR TAX ADVICE.
GENERALLY, NO SALE MAY BE MADE TO YOU
IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT
RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED
APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE
ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV (WHICH IS NOT INCORPORATED BY REFERENCE INTO THIS OFFERING CIRCULAR).
This Offering is inherently risky. See “Risk Factors”
beginning on page 10.
Sales of these securities will commence
within three calendar days of the qualification date and the filing of a Form 253(g)(2) Offering Circular AND it will be a continuous
Offering pursuant to Rule 251(d)(3)(i)(F).
The Company is following the “Offering
Circular” format of disclosure under Regulation A.
AN OFFERING STATEMENT PURSUANT TO
REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN
THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY
BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE
IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE.
THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS
DAYS AFTER THE COMPLETION OF THE COMPANY’S SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING
STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.
NASAA UNIFORM LEGEND
FOR RESIDENTS OF ALL STATES: THE
PRESENCE OF A LEGEND FOR ANY GIVEN STATE REFLECTS ONLY THAT A LEGEND MAY BE REQUIRED BY THAT STATE AND SHOULD NOT BE CONSTRUED
TO MEAN AN OFFER OR SALE MAY BE MADE IN A PARTICULAR STATE. IF YOU ARE UNCERTAIN AS TO WHETHER OR NOT OFFERS OR SALES MAY BE LAWFULLY
MADE IN ANY GIVEN STATE, YOU ARE HEREBY ADVISED TO CONTACT THE COMPANY. THE SECURITIES DESCRIBED IN THIS OFFERING CIRCULAR HAVE
NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS (COMMONLY CALLED ‘BLUE SKY’ LAWS).
IN MAKING AN INVESTMENT DECISION
INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING
THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
NOTICE TO FOREIGN INVESTORS
IF THE PURCHASER LIVES OUTSIDE THE
UNITED STATES, IT IS THE PURCHASER’S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE
THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS
OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES
BY ANY FOREIGN PURCHASER.
PATRIOT ACT RIDER
The Investor hereby represents and warrants
that Investor is not, nor is it acting as an agent, representative, intermediary or nominee for, a person identified on the list
of blocked persons maintained by the Office of Foreign Assets Control, U.S. Department of Treasury. In addition, the Investor has
complied with all applicable U.S. laws, regulations, directives, and executive orders relating to anti-money laundering , including
but not limited to the following laws: (1) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, Public Law 107-56, and (2) Executive Order 13224 (Blocking Property and Prohibiting Transactions
with Persons Who Commit, Threaten to Commit, or Support Terrorism) of September 23, 2001.
NO DISQUALIFICATION EVENT (“BAD
BOY” DECLARATION)
NONE
OF THE COMPANY, ANY OF ITS PREDECESSORS, ANY AFFILIATED ISSUER, ANY DIRECTOR, EXECUTIVE OFFICER, OTHER OFFICER OF THE COMPANY PARTICIPATING
IN THE OFFERING CONTEMPLATED HEREBY, ANY BENEFICIAL OWNER OF 20% OR MORE OF THE COMPANY’S OUTSTANDING VOTING EQUITY SECURITIES,
CALCULATED ON THE BASIS OF VOTING POWER, NOR ANY PROMOTER (AS THAT TERM IS DEFINED IN RULE 405 UNDER THE SECURITIES ACT OF 1933)
CONNECTED WITH THE COMPANY IN ANY CAPACITY AT THE TIME OF SALE (EACH, AN “ISSUER COVERED PERSON”)
IS SUBJECT TO ANY OF THE “BAD ACTOR” DISQUALIFICATIONS DESCRIBED IN RULE 506(D)(1)(I) TO (VIII) UNDER THE SECURITIES
ACT OF 1933 (A “DISQUALIFICATION EVENT”),
EXCEPT FOR A DISQUALIFICATION EVENT COVERED BY RULE 506(D)(2) OR (D)(3) UNDER THE SECURITIES ACT. THE COMPANY HAS EXERCISED REASONABLE
CARE TO DETERMINE WHETHER ANY ISSUER COVERED PERSON IS SUBJECT TO A DISQUALIFICATION EVENT.
Continuous Offering
Under Rule 251(d)(3) to Regulation A,
the following types of continuous or delayed Offerings are permitted, among others: (1) securities offered or sold by or on behalf
of a person other than the issuer or its subsidiary or a person of which the issuer is a subsidiary; (2) securities issued upon
conversion of other outstanding securities; or (3) securities that are part of an Offering which commences within two calendar
days after the qualification date. These may be offered on a continuous basis and may continue to be offered for a period in excess
of 30 days from the date of initial qualification. They may be offered in an amount that, at the time the Offering statement is
qualified, is reasonably expected to be offered and sold within one year from the initial qualification date. No securities will
be offered or sold “at the market.” The supplement will not, in the aggregate, represent any change from the maximum
aggregate Offering price calculable using the information in the qualified Offering statement. This information will be filed no
later than two business days following the earlier of the date of determination of such pricing information or the date of first
use of the Offering circular after qualification.
Sale of these shares will commence within
three calendar days of the qualification date and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).
Subscriptions are irrevocable and the
purchase price is non-refundable as expressly stated in this Offering Circular. The Company, by determination of the Board of Directors,
in its sole discretion, may issue the Securities under this Offering for cash, promissory notes, services, and/or other consideration
without notice to subscribers. All proceeds received by the Company from subscribers for this Offering will be available for use
by the Company upon acceptance of subscriptions for the Securities by the Company.
Forward Looking Statement Disclosure
This Form 1-A, Offering Circular,
and any documents incorporated by reference herein or therein contain forward-looking statements and are subject to risks and uncertainties.
All statements other than statements of historical fact or relating to present facts or current conditions included in this Form
1-A, Offering Circular, and any documents incorporated by reference are forward-looking statements. Forward-looking statements
give the Company’s current reasonable expectations and projections relating to its financial condition, results of operations,
plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may include words such as ‘anticipate,’ ‘estimate,’
‘expect,’ ‘project,’ ‘plan,’ ‘intend,’ ‘believe,’ ‘may,’
‘should,’ ‘can have,’ ‘likely’ and other words and terms of similar meaning in connection with
any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements
contained in this Form 1-A, Offering Circular, and any documents incorporated by reference herein or therein are based on reasonable
assumptions the Company has made in light of its industry experience, perceptions of historical trends, current conditions, expected
future developments and other factors it believes are appropriate under the circumstances. As you read and consider this Form 1-A,
Offering Circular, and any documents incorporated by reference, you should understand that these statements are not guarantees
of performance or results. They involve risks, uncertainties (many of which are beyond the Company’s control) and assumptions.
Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that
many factors could affect its actual operating and financial performance and cause its performance to differ materially from the
performance anticipated in the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should
any of these assumptions prove incorrect or change, the Company’s actual operating and financial performance may vary in
material respects from the performance projected in these forward- looking statements. Any forward-looking statement made by the
Company in this Form 1-A, Offering Circular or any documents incorporated by reference herein speaks only as of the date of this
Form 1-A, Offering Circular or any documents incorporated by reference herein. Factors or events that could cause our actual operating
and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them.
The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments
or otherwise, except as may be required by law.
About This Form 1-A and Offering
Circular
In making an investment decision,
you should rely only on the information contained in this Form 1-A and Offering Circular. The Company has not authorized anyone
to provide you with information different from that contained in this Form 1-A and Offering Circular. We are offering to sell,
and seeking offers to buy the Shares only in jurisdictions where offers and sales are permitted. You should assume that the information
contained in this Form 1-A and Offering Circular is accurate only as of the date of this Form 1-A and Offering Circular, regardless
of the time of delivery of this Form 1-A and Offering Circular. Our business, financial condition, results of operations, and prospects
may have changed since that date. Statements contained herein as to the content of any agreements or other documents are summaries
and, therefore, are necessarily selective and incomplete and are qualified in their entirety by the actual agreements or other
documents.
TABLE OF CONTENTS
ITEM 1
Cover Page of Offering Circular
|
-
|
ITEM 2
Summary Information
|
6
|
ITEM 3 Risk Factors - COVID-19 Risks Related to the Company
|
9
|
ITEM 3 Risk Factors (contd)
|
9
|
ITEM 4 Dilution
|
15
|
ITEM 5. Plan of Distribution and Selling Securityholders
|
16
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ITEM 6 Use of Proceeds
|
17
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ITEM 7 Description of Business
|
18
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ITEM 8. Description of Property
|
22
|
ITEM 9. Managements Discussion and Analysis
|
23
|
ITEM 10. Directors, Executives, and Significant Employees
|
27
|
ITEM 11. COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
|
29
|
ITEM 12. Security Ownership of Management and Control Persons
|
30
|
ITEM 13. Interest of Management and Others In Certain Transactions
|
31
|
ITEM 14. Securities Being Offered
|
32
|
ITEMS 15A & 15B. Financial Statements
|
F1
|
Exhibits
|
|
Signatures
|
|
5
SUMMARY
OF INFORMATION IN OFFERING CIRCULAR
As used in this
prospectus, references to the Company, company, we, our, us, The
Company, or Company Name refer to GOLD ENTERTAINMENT GROUP, INC.,
unless the context otherwise indicated.
You should carefully
read all information in the prospectus, including the financial
statements and their explanatory notes, under the Financial
Statements prior to making an investment decision.
|
|
The Company
|
|
Organization:
|
Gold Entertainment Group, Inc. was originally incorporated in the
State of Nevada on February 3, 1999 as a C corporation under the
name ADVANCED MEDICAL TECHNOLOGIES INC. / CANADA. The fiscal year
end is January 31st.
On June 27, 2018, Gold Entertainment
Group, Inc. ("we" or "Company") entered into
an agreement with IceLounge Media Inc., a Wyoming corporation
("ICELOUNGE"), (the "Agreement"). Pursuant to
the terms of the Agreement, the Company authorized a new class of
Preferred Shares. The new class, SERIES B Preferred Shares were
issued as part of the payment due to the Company's CEO and
Director, Mr. Fytton, for the acquisition of the Company's
controlling block of Series A Preferred Stock, by ICELOUNGE; whose
rights remain unchanged. Following conformation from the State of
Florida of these changes, the Effective Date for the previously
announced ICELOUNGE Agreement is amended to be August 10, 2018.
On the effective date of August 10, 2018, Mr. Fytton
resigned as President and CEO, and was appointed as Chief
Financial Officer and Director of the Company. Our principal
office is located at 2412 Irwin St. Melbourne, FL 32901
In November 2023, M. Schiegal resigned as CEO and Director and
retained his shares. Mr Fytton was, again, appointed as CEO and
Cathy Julian as CFO and as a Director.
|
Capitalization:
|
Our articles of incorporation provide for the issuance of up to
(i) 25,000,000,000 shares of Common Stock, par value $0.0001 and
(ii) 5,000,000 shares of Preferred Stock, par value $0.0001. As
of the date of this Prospectus there are 16,812,001,513 shares of
Common Stock, and 2,000,000 shares of Preferred SERIES A and
200,000 Preferred SERIES B issued and outstanding.
|
Management:
|
Our Chief Executive Officer and Director is Hamon Fytton. He also
acts as President and Secretary. Cathy Julian as CFO and Director,
the only other officer, and one other director of the Company as
of the date of this filing. The Company does not plan to add
additional Officers and Directors upon qualification of this
offering. The CEO spends approx. 25 hours per month to the affairs
of the Company. This is expected to continue following
qualification of this offering and as Company operations commence.
|
Controlling Shareholders:
|
Our CEO owns 3,500,000,000 shares of Common Stock. The
shareholders of IceLounge Media, Inc., collectively own
3,500,000,000 shares of Common Stock and are the 100% owner of the
SERIES A Preferred shares. The CFO also owns 3,500,000,000 shares
of Common Stock. As such, our current CEO is dependent on the
other Officers and Directors to be able to exert significant
influence over the affairs of the Company.
|
Independence:
|
We are not a blank check company, as such term is defined by Rule
419 promulgated under the Securities Act of 1933, as amended, as
we have a specific business plan and we presently have no binding
plans or intentions to engage in a merger or acquisition with an
unidentified company, companies, entity or person.
|
6
Our Business
|
|
|
|
Description of Operations:
|
Our corporate office is located at 2412 Irwin St., Melbourne, FL 32901. This is the office of our CEO, and is provided at no cost to the Company. The Company also has an office in Hudson, Florida for the Medical Device operations. This is provided at no cost to the Company by its CFO who, in another company, owns the building.
|
Historical Operations:
|
Commencing January 31, 2004, Gold Entertainment Group, Inc. was a developer and marketer of a national multi-level, fixed- price DVD rental program, and sought to become a leading home entertainment sales and rental company. Gold Entertainment Group, Inc. marketed its products and programs exclusively through an independent network of distributors whereby its distributors promoted the Company's DVD rental service with products shipped directly to consumers. The Company maintains the web site: www.GoldEntertainment.com
At the time, the Company had
operations through its main office in Florida, and a Canadian
subsidiary in Toronto, Ontario. As of our quarterly report ending April 30, 2024 we have an
accumulated deficit of $(20,227).
|
Growth Strategy:
|
The Company has expanded its healthcare operations with a 20% ownership in MEDWORX A INC, a medical billing company, during the first quarter of 2024.. Upon completion of this offering, and following a successful capital raise, the Company intends to seek other acquisitions in the healthcare industry. The
timing of commencement of expanding operations may be influenced
by our relative success of this offering. We may not raise
sufficient proceeds through this offering in order to fully
execute our business plans.
|
Expansion Strategy:
|
Its current business plan is the
expansion of this business following the successful funding
through this offering. This will involve the expansion of its
existing products into new markets and the development and
acquisition additional products. This will be accomplished through
business acquisitions, joint ventures or re-sale agreement, or any
combination thereof.
The Company also, intends to use its capital stock,
debt, or a combination of
these to effect an acquisition of a complimentary business. We are
an emerging growth company, and we expect to use substantially all
of the net proceeds from this offering to engage in acquisition
and product development business described herein. We expect to
build a high-quality brand portfolio intended to generate income
and to provide capital preservation, capital appreciation and
portfolio diversification.
|
|
|
Current Operations:
|
The Company is a distributor of orthopedic products.
|
|
|
|
|
Growth Strategy:
|
The Company will expand its healthcare operations upon completion
of this offering, and following a successful capital raise. The
timing of commencement of expanding operations may be influenced
by our relative success of this offering. We may not raise
sufficient proceeds through this offering in order to fully
execute our business plans.
|
The Offering
|
|
Securities Offered:
|
4,000,000,000 shares of Common Stock at $0.00015 per share.
|
Common
Stock Outstanding
before the Offering:
|
16,812,001,513 shares of Common Stock.
|
Common
Stock Outstanding
after the Offering
|
20,812,001,513 shares of Common Stock.
|
Use of Proceeds
|
The proceeds will be deployed for acquisitions and product
development and related working capital expenses. See ITEM 6 for a
detailed explation.
|
Termination of the Offering:
|
The offering will commence
as soon as practicable after this Offering Circular has been
qualified by the Securities and Exchange Commission (the "SEC")
and the relevant state regulators, as necessary and will terminate
on the sooner of the sale of the maximum number of shares being
sold, twelve months from the effective date of this Offering
Statement or the decision by Company management to deem the
offering closed.
|
Offering Cost:
|
We estimate our total offering registration costs to be $50,000.
If we experience a shortage of funds prior to funding, our
CFO and director has verbally agreed to advance funds to the
Company to allow us to pay for offering costs, filing fees, and
correspondence with our shareholders; however our officer and
director has no legal obligation to advance or loan funds to the
Company.
|
Market for the Shares:
|
The Shares being offered herein are not listed for trading on any
exchange or automated quotation system. The Company does not
intend to seek such a listing at any time hereinafter.
|
8
ITEM 3. RISK FACTORS
COVID-19 Risks
Related to the Company
The COVID-19
pandemic poses specific risks related to our Company
The COVID-19 pandemic poses specific risks related to our Company.
Specifically it makes it difficult for us to evaluate specific
business opportunities, visit certain areas easily, meet with
potential investors and joint venture partners. Some investment
companies may also determine that because we are a company with
limited revenue and assets, that we will delayed unreasonably in our
ability to create new products and expand in a timely manner. This
may influence them in a negative manner and make decisions based on
those estimates of our potential future performance.
We intend to pursue
business expansion via acquisition. With these existing
opportunities, there may be unforeseen delays and late payments due
to COVID-19. This may reduce our ability to obtain investment
financing for those opportunities. This will require the Company to
acquire these opportunities being asked to agree to unreasonable
terms or abandon those opportunities altogether. This will increase
our cost and create delays in acquiring opportunities.
There is, however, a
potential upside to the COVID-19 disruption. If we can obtain the
confidence of investors, we may be able to target opportunities where
the income has been delayed or disrupted by the pandemic. We would
typically have to make a fast offer on such opportunities in order to
negotiate a sale. We would expect to obtain such opportunities at a
discount relative to a normal market appraisal.
In either case the
COVID-19 pandemic will cause continued disruption in the consumer
market for an unknown time period. This may result in the delays in
the Company's operations.
Investing in our shares
involves risk. In evaluating the Company and an investment in the
shares, careful consideration should be given to the following risk
factors, in addition to the other information included in this
Offering circular. Each of these risk factors could materially
adversely affect The Company's business, operating results or
financial condition, as well as adversely affect the value of an
investment in our shares. The following is a summary of the most
significant factors that make this offering speculative or
substantially risky. The company is still subject to all the same
risks that all companies in its industry, and all companies in the
economy, are exposed to. These include risks relating to economic
downturns, political and economic events and technological
developments (such as cyber-security). Additionally, early-stage
companies are inherently more risky than more developed companies.
You should consider general risks as well as specific risks when
deciding whether to invest.
Risks Related to
the Company
The Company has a limited operating history in its current business operations.
Our company was incorporated on February 3, 1999, and were in a different line of business, which makes a present day evaluation of our business operations difficult. In addition, we have recently shifted our focus from the technology and internet operations to becoming a distributor of orthopedic products. There is a risk that we will be unable to successfully continue to operate this new line of business or be able to successfully integrate it with our current management and structure. Our estimates of capital and personnel required for our new line of business are based on the experience of management and businesses that are familiar to them. We are subject to the risks such as our ability to implement our business plan, market acceptance of our proposed business and services, under-capitalization, cash shortages, limitations with respect to personnel, financing and other resources, competition from better funded and experienced companies, and uncertainty of our ability to generate revenues. There is no assurance that our activities will be successful or will result in any revenues or profit, and the likelihood of our success must be considered in light of the stage of our development. In addition, no assurance can be given that we will be able to consummate our business strategy and plans, as described herein, or that financial, technological, market, or other limitations may force us to modify, alter, significantly delay, or significantly impede the implementation of such plans. We have insufficient results for investors to use to identify historical trends or even to make quarter to quarter comparisons of our operating results. You should consider our prospects in light of the risk, expenses and difficulties we will encounter as an early-stage company. Our revenue and income potential is unproven, and our business model is continually evolving. We are subject to the risks inherent to the operation of a new business enterprise and cannot assure you that we will be able to successfully address these risks.
The
company has realized significant operating losses to date and expects
to incur losses in the future
The
company has operated at a loss since inception, and these losses are
likely to continue. The Company's net loss for the period ending April 30, 2024 is $20,227. Until the company achieves profitability, it
will have to seek other sources of capital in order to continue
operations.
The Company has
limited capitalization and a lack of working capital and as a result
is dependent on raising funds to grow and expand its business.
The Company lacks sufficient working capital in order to execute its
business plan. The ability of the Company to move forward with its
objective is therefore highly dependent upon the success of the
offering described herein. Should we fail to obtain sufficient
working capital through this offering we may be forced to abandon our
business plan.
Because
we do not have a recent history of operations we may not be able to
successfully implement our business plan.
We
are a public company trading under the symbol GEGP. We have limited
recent operational history, accordingly, our future operations are
subject to similar risks inherent in the establishment of a new
business enterprise, including access to capital, successful
implementation of our business plan and generating revenue from
operations. We cannot assure you that our intended activities or plan
of operation will be successful or result in revenue or profit to us
and any failure to implement our business plan may have a material
adverse effect on the business of the Company.
9
We are a publicly traded corporation with over ten years of
operating history, however we may not be able to successfully operate
our business or generate sufficient operating cash flows to make or
sustain distributions to our stockholders.
Our growth strategy
could fail or present unanticipated problems for our business in the
future, which could adversely affect our ability to make acquisitions
or realize anticipated benefits of those acquisitions. Our financial
condition, results of operations and ability to make or sustain
distributions to our stockholders will depend on many factors,
including:
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diversion
of management's attention;
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our
ability to consummate financing on favorable terms;
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the
need to integrate acquired operations;
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potential
loss of key employees of the acquired companies;
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an
increase in our expenses and working capital requirements; and
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economic
conditions in our markets, as well as the condition of the
financial investment markets and the economy generally.
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We
are dependent on funding from our Officers and Directors and the sale
of our securities to fund our operations.
We are dependent on
funding from our Officers and Directors and the sale of our
securities to fund our operations, and will remain so until we
generate sufficient revenues to pay for our operating costs. Our
Officers and Directors have not made any written commitments with
respect to providing a source of liquidity in the form of cash
advances, loans and/or financial guarantees. There can be no
guarantee that we will be able to successfully sell our equity
securities. Such liquidity and solvency problems may force the
Company to cease operations if additional financing is not available.
No known alternative resources of funds are available in the event we
do not generate sufficient funds from operations.
The Company is
dependent on key personnel and loss of the services of any of these
individuals could adversely affect the conduct of the Company's
business.
Our business plan is
significantly dependent upon the ability to hire and retain qualified
individuals and key personal, who may be appointed as officers and
directors, and their continued participation in our Company. It may
be difficult to replace any of them at an early stage of development
of the Company. The loss by or unavailability to the Company of their
services would have an adverse effect on our business, operations and
prospects, in that our inability to replace them could result in the
loss of your investment. There can be no assurance that we would be
able to locate or employ personnel to replace any of our officers,
should their services be discontinued. In the event that we are
unable to locate or employ personnel to replace our officers we would
be required to cease pursuing our business opportunity, which would
result in a loss of your investment.
10
The Company may
not be able to attain profitability without additional funding, which
may be unavailable.
The Company has limited
capital resources. Unless the Company begins to generate sufficient
revenues to finance operations as a going concern, the Company may
experience liquidity and solvency problems. Such liquidity and
solvency problems may force the Company to cease operations if
additional financing is not available. No known alternative resources
of funds are available in the event we do not generate sufficient
funds from operations.
Risks Relating to
Our Business
The profitability of attempted
acquisitions and other business developments is uncertain.
We intend to acquire
and develop new marketing technologies and companies selectively. The
acquisition and development of these technologies entails risks that
investments may fail to perform in accordance with expectations. In
undertaking these projects, we will incur certain risks, including
the expenditure of funds on, and the devotion of management's time
to, transactions that may not come to fruition. Additional risks
inherent in the projects include risks that the intended advertisers
will not accept our new products and may not achieve additional
anticipated sales using these new products. As a result capital
expenditure used to develop these new products, may be amortized over
a much longer time than expected. Expenses may be greater than
anticipated.
Some of
our investments may be illiquid.
Because
some of our investments may be illiquid, our ability to vary our
portfolio promptly in response to economic or other conditions will
be limited. This is because there may be apprehension among investors
in general, because of relative newness pf the companies we attract
as investments or acquisition. The foregoing and any other factor or
event that would impede our ability to respond to adverse changes in
the performance of our investments could have an adverse effect on
our financial condition and results of operations.
11
Risks Relating to Our Business - continued
Our opportunities may not be
diversified.
Our potential
profitability and our ability to diversify our investments may be
limited, both geographically and by type of opportunities purchased.
We will be able to purchase or develop additional opportunities only
as additional funds are raised and only if owners of businesses
accept our stock in exchange for an interest in the target business.
Our opportunities may not be well diversified and their economic
performance could be affected by changes in local economic
conditions.
Competition with
third parties for opportunities and other investments may result in
our paying higher prices for opportunities which could reduce our
profitability and the return on your investment.
We compete with many
other entities engaged in brand development and investment
activities, including individuals, corporations, REITs, and limited
partnerships, many of which have greater resources than we do. Some
of these investors may enjoy significant competitive advantages that
result from, among other things, a lower cost of capital and enhanced
operating efficiencies. In addition, the number of entities and the
amount of funds competing for suitable investments may increase. Any
such increase would result in increased demand for these assets and
increased prices. If competitive pressures cause us to pay higher
prices for opportunities, our ultimate profitability may be reduced
and the value of our opportunities may not appreciate or may decrease
significantly below the amount paid for such opportunities. At the
time we elect to dispose of one or more of our opportunities, we will
be in competition with sellers of similar opportunities to locate
suitable purchasers, which may result in us receiving lower proceeds
from the disposal or result in us not being able to dispose of the
property due to the lack of an acceptable return. This may cause you
to experience a lower return on your investment.
The Company may
not be able to effectively control the timing and costs relating to
the acquisition opportunities, which may adversely affect the
Companys operating results and the its ability to make a return
on its investment or disbursements of dividends or interest to our
shareholders.
Nearly all of the
opportunities to be acquired by the Company will require some
level of capital expenditure immediately upon their acquisition or in
the near future. The Company may acquire opportunities that it
plans to extensively develop and require significant capital
infusion. The Company also may acquire opportunities that it
expects to be in good standing and operations, but has problems that
require extensive capital expenditure to fix.
If the Companys
assumptions regarding the costs or timing of business improvements
prove to be materially inaccurate, the Companys operating
results and ability to make distributions to our Shareholders may be
adversely affected.
The Company has not yet identified any specific
opportunities to acquire or improve with net proceeds of this
offering, and you will be unable to evaluate the economic merits
of the company's investments made with such net proceeds before
making an investment decision to purchase the Companys
securities.
The Company will have
broad authority to invest a portion of the net proceeds of this
offering in any opportunities the Company may identify in the future,
and the Company may use those proceeds to make investments and
improvements with which you may not agree. You will be unable to
evaluate the economic merits of the Company's opportunities before
the Company invests in them and the Company will be relying on its
ability to select attractive investment opportunities. In addition,
the Company's investment policies may be amended from time to time at
the discretion of the Company's Management, without out notice to the
Company's Shareholders. These factors will increase the uncertainty
and the risk of investing in the Company's securities.
12
Risks Related to
Our Securities
There is a
limited established trading market for our Common Stock and if a
trading market does not develop, purchasers of our securities may
have difficulty selling their securities
GEGP is a non-reporting
company as defined by the SEC. It does not presently, as of the date
of this prospectus, file periodic reports with the SEC. It is quoted
on the OTC Markets as a PINK sheet company. There is a limited
established public trading market for our Common Stock and an active
trading market in our securities may not develop or, if developed,
may not be sustained. While we intend to seek a quotation
on a major national exchange or automated quotation system in the
future, there can be no assurance that any such trading market will
develop, and purchasers of the common stock may have difficulty
selling their common stock. No market makers have committed to
becoming market makers for our common stock and none may do so.
The offering
price of the Shares being offered herein has been arbitrarily
determined by us and bears no relationship to any criteria of value;
as such, investors should not consider the offering price or value to
be an indication of the value of the shares being registered.
Currently, there is a
limited public market for our Shares. The offering price for the
Shares being registered in this offering has been arbitrarily
determined by us and is not based on assets, operations, book or
other established criteria of value. Thus, investors should be
aware that the offering price does not reflect the market price or
value of our common shares.
We
may, in the future, issue additional shares of Common Stock, which
would reduce the investor's percentage of ownership and may dilute
our share value.
Our Articles of
Incorporation authorize the issuance of 25,000,000,000 shares of
Common Stock; up to 5,000,000 shares of Preferred Stock. As of July 15, 2024, the Company has 16,812,001,513 shares of Common Stock, and As of the date of this offering, there are 2,000,000 PREFERRED SERIES A (super voting only) and 322,000 PREFERRED SERIES B (convertible) shares have been issued and outstanding. If
we sell the entire 4,000,000,000 shares of Common Stock in this
Offering, we will have 20,812,001,513 shares of Common Stock issued
and outstanding. Accordingly, we may issue additional shares of
Common Stock at a later date to employees or for services. The future
issuance of common stock may result in substantial dilution in the
percentage of our common stock held by our then existing
shareholders. We may value any common stock issued in the future on
an arbitrary basis. The issuance of common stock for future services
or acquisitions or other corporate actions may have the effect of
diluting the value of the shares held by our investors, and might
have an adverse effect on any trading market for our common stock.
13
We are publicly traded company and we may finance our business
through debt at a future date
As
with other public companies, we may choose, from time to time, to
finance our business through the sale of stock or promissory notes
collateralized by our common stock We may also acquire debt in the
form of mezzanine or bridge financing. We may borrow such funds from
a traditional bank, or non-bank third party. We hope to finance
acquisitions mostly with the sale of our common stock in this
offering. As a result, our balance sheet may be unduly leveraged and
if we cannot sell or liquidate our opportunities, we will be burdened
by debt service, including, but not limited to payment of principal
and interest and other fees.
We are subject to
compliance with securities law, which exposes us to potential
liabilities, including potential rescission rights.
We may offer to sell
our common stock to investors pursuant to certain exemptions from the
registration requirements of the Securities Act of 1933, as well as
those of various state securities laws. The basis for relying on such
exemptions is factual; that is, the applicability of such exemptions
depends upon our conduct and that of those persons contacting
prospective investors and making the offering. We may not seek any
legal opinion to the effect that any such offering would be exempt
from registration under any federal or state law. Instead, we may
elect to rely upon the operative facts as the basis for such
exemption, including information provided by investor themselves.
If any such offering
did not qualify for such exemption, an investor would have the right
to rescind its purchase of the securities if it so desired. It is
possible that if an investor should seek rescission, such investor
would succeed. A similar situation prevails under state law in those
states where the securities may be offered without registration in
reliance on the partial preemption from the registration or
qualification provisions of such state statutes under the National
Securities Markets Improvement Act of 1996. If investors were
successful in seeking rescission, we would face severe financial
demands that could adversely affect our business and operations.
Additionally, if we did not in fact qualify for the exemptions upon
which it has relied, we may become subject to significant fines and
penalties imposed by the SEC and state securities agencies.
14
ITEM 4. DILUTION
If you invest in our shares, your
interest will be diluted to the extent of the difference between the
offering price per share of our common stock in this offering and the
as adjusted net tangible book value per share of our capital stock
after this Offering. The following table demonstrates the dilution
that new investors will experience relative to the Company's net
tangible book value as of July 15, 2024. Net tangible book value is
the aggregate amount of the Company's tangible assets, less its total
liabilities. The table presents three scenarios: a $262,500 raise
from this Offering, a $525,000 raise from this
Offering and a fully subscribed $1,050,000 million raise from this
Offering.
Proceeds
from Sale
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$0.2625 MM
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$0.5250 MM
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$1.050 MM
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Percentage
of Shares Sold
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25%
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50%
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100%
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Price
Per Share
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$0.00015
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$0.00015
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$0.00015
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Shares
Issued
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1,000,000,000
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2,000,000,000
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4,000,000,000
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Capital Raised
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262,500
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525,000
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1,050,000
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Less
Offering Costs
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50,000
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50,000
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50,000
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Net
Proceeds
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212,500
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475,000
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1,000,000
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Net
Tangible Value Pre-Financing
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(273.748)
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(273.748)
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(273.748)
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Net Tangible Value Post-Financing
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(61,248)
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201,252
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726,252
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Shares
Issued and Outstanding - Pre Financing
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16,812,001,513
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16,812,001,513
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16,812,001,513
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Shares
Issued and Outstanding - Post Financing
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17,812,001,513
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18,812,001,513
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20,812,001,513
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Net
Tangible Value Pre-Financing
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$0.000016
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$0.000016
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$0.000016
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Increase/Decrease
per Share Attributable To New Investors
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($0.0000126)
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($0.000005)
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$0.000019
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Net Tangible Book Value per Share, Post Offering
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$0.0000034
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$0.000011
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$0.000035
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Another important way of looking at
dilution is the dilution that happens due to future actions by the
company. The investor's stake in a company could be diluted due to
the company issuing additional shares. In other words, when the
company issues more shares, the percentage of the company that you
own will go down, even though the value of the company may go up. You
will own a smaller piece of a larger company. This increase in number
of shares outstanding could result from a stock offering (such as an
initial public offering, a venture capital round, angel investment),
employees exercising stock options, or by conversion of certain
instruments (e.g. convertible bonds, convertible notes, preferred
shares or warrants) into stock. If the company decides to issue more
shares, an investor could experience value dilution, with each share
being worth less than before, and control dilution, with the total
percentage an investor owns being less than before.
The company has authorized and issued
Common stock and two classes of Preferred Stock. Therefore, all of
the company's current shareholders and the investors in this Offering
will experience the same dilution if the company decides to issue
more shares in the future.
NOTE: As of the date of this offering, there are 2,000,000 PREFERRED SERIES A (super voting only) and 322,000 PREFERRED SERIES B (convertible) shares have been issued.
15
ITEM 5. PLAN OF DISTRIBUTION
We are offering a
maximum of 4,000,000,000 Common Shares with no minimum, on a best
efforts basis. We will sell the shares ourselves and do not plan to
use underwriters or pay any commissions. We will be selling our
shares using our best efforts and no one has agreed to buy any of our
shares. This prospectus permits our existing, and future, officers
and directors to sell the shares directly to the public, with no
commission or other remuneration payable to them for any shares they
may sell. There is currently no plan or arrangement to enter into any
contracts or agreements to sell the shares with a broker or dealer.
Our officers and directors will sell the shares and intend to offer
them to friends, family members and business acquaintances. There is
no minimum amount of shares we must sell; so no money raised from the
sale of our shares will go into escrow, trust or another similar
arrangement.
The shares are being
offered by the Company. The Company will be relying on the safe
harbor in Rule 3a4-1 of the Securities Exchange Act of 1934 to sell
the shares. No sales commission will be paid for shares sold by the
Company. None of our Officer and Directors are subject to a statutory
disqualification and are not associated persons of a broker or
dealer.
Additionally, our
Officer and Directors perform substantial duties on behalf of the
registrant other than in connection with transactions in securities.
None has not been a broker or dealer or an associated person of a
broker or dealer within the preceding 12 months and they have not
participated in selling an offering of securities for any issuer more
than once every 12 months other than in reliance on paragraph (a)4(i)
or (a)4(iii) of Rule 3a4-1 of the Securities Exchange Act of 1934.
The offering will
terminate upon the earlier to occur of: (i) the sale of all
4,000,000,000 shares being offered, or (ii) 365 days after this
Offering Circular is declared qualified by the Securities and
Exchange Commission or (iii) or the decision by Company management to
deem the offering closed.
There are an additional 3,000,000,000 shares of Common Stock being offered and a further one hundred thousand PREFERRED SERIES B (100,000) convertible shares by the Selling Shareholders. The Company will not receive any proceeds from sales by the Selling Shareholders.
16
ITEM 6. USE OF
PROCEEDS TO ISSUER
We estimate that, at a
per share price of $0.0015, the net proceeds from the sale of the
4,000,000,000 shares in this Offering will be approximately $1,000,000,
after deducting the estimated offering expenses of approximately
$50,000.
Purpose of
Offering
We will utilize
the net proceeds from this offering to identify and acquire business
opportunities and to develop our products. Some funds will be used
for operating expenses and other expenses.
We have made
allowance for the expenses to file and become an SEC Reporting
Company, and therefore be required to file reports periodically with
the Securities and Exchange Commission under section 12, 13 or 15(d)
of the Securities Exchange Act of 1934.
Accordingly, we
expect to use the net proceeds, estimated as discussed above as
follows, if we raise the maximum offering amount:
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Use
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Amount
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Percentage
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Acquisition
Costs
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$450,000
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43%
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Accounting,
Audit & Legal fees
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$200,000
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19%
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Working
Capital
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$200,000
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19%
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Salaries
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$150,000
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14%
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Offering
Expenses
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$50,000
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5%
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TOTAL
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$1,050,000
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100%
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(1)
"Acquisition Costs" are costs related to the
selection and acquisition of opportunities, including financing and
closing costs. These expenses include but are not limited to travel
and communications expenses, legal and accounting fees and
miscellaneous expenses. The presentation in the table is based on the
assumption that we will always finance the acquisition of
opportunities whenever posable.
(2) Offering
Expensesinclude projected costs for Legal and Accounting,
Publishing/Edgar and Transfer Agents Fees.
The above figures
represent only estimated costs. This expected use of net proceeds
from this offering represents our intentions based upon our current
plans and business conditions. The amounts and timing of our actual
expenditures may vary significantly depending on numerous factors,
including the status of and results from operations. As a result, our
management will retain broad discretion over the allocation of the
net proceeds from this offering. We may find it necessary or
advisable to use the net proceeds from this offering for other
purposes, and we will have broad discretion in the application of net
proceeds from this offering. Furthermore, we anticipate that we will
need to secure additional funding for the fully implement our
business plan.
The company reserves the right to
change the above use of proceeds if management believes it is in the
best interests of the company.
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ITEM 7. DESCRIPTION OF BUSINESS
Our Company
The Company has recently expanded its healthcare operations with a 20% ownership in MEDWORX A INC, a medical billing company, during the first quarter of 2024.. Upon completion of this offering, and following a successful capital raise, the Company intends to seek other acquisitions in the healthcare industry. The
timing of commencement of expanding operations may be influenced
by our relative success of this offering. We may not raise
sufficient proceeds through this offering in order to fully
execute our business plans.
The Company does not propose to restrict its
search for a business opportunity to any particular industry or
geographical area and may, therefore, engage in essentially any
business in any industry. The Company has unrestricted discretion in
seeking and participating in a business opportunity, subject to the
availability of such opportunities, economic conditions, and other
factors. The selection of a business opportunity in which to
participate is complex and risky. Additionally, as the Company has
only limited resources and may find it difficult to locate good
opportunities. There can be no assurance that the Company will be
able to identify and acquire any business opportunity which will
ultimately prove to be beneficial to the Company and its
shareholders. The Company will select any potential business
opportunity based on management's business judgment. The activities
of the Company are subject to several significant risks, which arise
primarily as a result of the fact that we have no specific business,
and may acquire or participate in a business opportunity based on the
decision of management, which potentially could act without the
consent, vote, or approval of the Company's shareholders.
Business Information
Introduction
Gold Entertainment Group, Inc. is a Medical Device distributor.
The Company signed an agreement on December 31, 2022, to acquire 51% of Devon Orthopedic Implants, LLC ("ORTHO") a Delaware limited liability company with offices in New Port Richey, Florida. ORTHO is an operating company and operates as a subsidiary of GOLD effective January 31, 2023. The other 49% ownership is EXLITES HOLDINGS INTERNATIONAL INC. a New Mexico corporation with a public trading symbol of EXHI.
The Company has recently expanded its healthcare operations with a 20% ownership in MEDWORX A INC, a medical billing company, during the first quarter of 2024.
We expect to use substantially all of the net
proceeds from this offering to engage in the acquisition of existing
businesses and becoming an SEC reporting Company. We expect to build
a high-quality brand portfolio intended to generate income and to
provide capital preservation, capital appreciation and portfolio
diversification. These opportunities may be existing opportunities,
new opportunities which we intend to acquire, make business
improvements and provide financing for business expansion. We intend
to conduct our operations so that neither we nor, our subsidiaries
are required to register as an investment company under the
Investment Company Act of 1940, as amended, or the 1940 Act.
Our Competitive
Strengths
We believe that The
Company will be able to attract experienced directors and officers
and other key personal with the necessary experience. We believe our
investment strategy will assist in their recruitment, and distinguish
us from other brand development companies. Specifically, our
competitive strengths include the following:
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Experienced
and Dedicated Management. The Company intends
to recruit a committed management team with experience in various
business projects. This team, who in place, will assist in
establishing a robust infrastructure of service providers,
including financial and business development managers for assets
under management.
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Investing
Strategy. Our Management has an extensive deal flow
network in various markets due to long-standing relationships with
business owners and public company lenders.
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Highly
Disciplined Investing Approach. We intend to take a
time-tested and thorough approach to analysis, management and
investor reporting.
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Market
Opportunity
The economic outlook, in our view, presents an opportunity for our
business. The Company believes that recent corrections in the
national, regional and local markets are healthy and, in many cases,
overdue. Over the course of the past several months, the Company have
noticed that consumers have begun to explore the development of
market-appropriate product with realistic absorption projections and
expectations of realizable upside upon completion of their project in
one to three years. Many businesses are experiencing a critical lack
of investment capital. The contraction in capital supply to the small
to mid-sized business has not only added to the potential acquition
base for the Company but also is expected to produce higher credit
borrowers and enhanced the Company's investment power. As a result of
tight lending rules, outside of SBA incentives, many smaller business
operators, of all types, become more favorable to the concept of
acquisition by a public company, combined with financing.
18
Investment Objectives
Our
primary investment objectives are:
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to
maximize the capital gains of our opportunities;
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to
preserve and protect your capital contribution;
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to enable
investors to realize a return on their investment by beginning the
process of liquidating and distributing cash to investors within
approximately five years of the termination of this offering, or
providing liquidity through alternative means such as in-kind
distributions of our own securities or other assets; and
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To
achieve long-term capital appreciation for our stockholders
through increases in the value of our company.
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We will also seek to realize growth in
the value of our investments and to optimize the timing of their
expansion.
However, we cannot
assure you that we will attain these objectives or that the value of
our investments will not decrease. We have not established a specific
policy regarding the relative priority of these investment
objectives.
Investment
Criteria
We believe the most
important criteria for evaluating the markets in which we intend to
purchase investment opportunities include:
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historic
and projected population growth;
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high
historic and projected employment growth;
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markets with high levels of insured populations; and
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stable
household income and general economic stability.
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The businesses and
markets in which we invest may not meet all of these criteria and the
relative importance that we assign to any one or more of these
criteria may differ from market to market or change as general
economic and market conditions evolve. We may also consider
additional important criteria in the future.
Investment
Policies
Our investment
objectives are to maximize the capital gains of our opportunities and
achieve long-term capital appreciation for our stockholders through
increases in the value of our company. We have not established a
specific policy regarding the relative priority of these investment
objectives.
We expect to pursue our
investment objectives primarily through the ownership of businesses,
of various types, and with tangible assets. We currently intend to
invest primarily in the acquisition, development and management of
existing businesses, instead of developing our own. While we may
diversify in terms of business types , we do not have any limit on
the amount or percentage of our assets that may be invested in any
type of business, or any one geographic area.
We may also participate
with third parties in business ownership, through joint ventures or
other types of co-ownership. These types of investments may permit us
to own interests in larger assets without unduly restricting our
diversification and, therefore, provide us with flexibility in
structuring our portfolio. We will not, however, enter into a joint
venture or other partnership arrangement to make an investment that
would not otherwise meet our investment policies.
19
Equity investments in
acquired opportunities may be subject to existing financing and other
indebtedness or to new indebtedness which may be incurred in
connection with acquiring or refinancing these opportunities. Debt
service on such financing or indebtedness will have a priority over
any dividends with respect to our common stock. Investments are also
subject to our policy not to be treated as an investment company
under the Investment Company Act of 1940, as amended, or the 1940
Act.
Due Diligence Process
We will consider a
number of factors in evaluating whether to acquire any particular
asset, including: geographic location; business assets; historical
performance; current and projected cash flow; potential for capital
appreciation; potential for economic growth in the area where the
asset is located; presence of existing and potential competition;
prospects for liquidity through sale, financing or refinancing of the
assets; and tax considerations. Because the factors considered,
including the specific weight we place on each factor, vary for each
potential investment, we will not assign a specific weight or level
of importance to any particular factor. Our obligation to close on
the purchase of any investment generally will be conditioned upon the
delivery and verification of certain documents from the seller,
including, where available and appropriate: plans and specifications;
environmental reports; surveys; evidence of marketable title subject
to any liens and encumbrances as are acceptable to the Company; and
title and liability insurance policies.
Acquisition of
opportunities
The Company intends on
acquiring businesses primarily through industry contacts, including
debt financiers who may have distressed businesses that they would be
willing to transfer to our management. The number of businesses
opportunities that may be available from all of the foregoing sources
will vary from time to time, depending on numerous factors including,
without limitation, trends in delinquent debt and capital
availability.
Tax Treatment of
Registrant and its Security Holders.
We are a publicly
traded company and investment typically takes the form of Common
Stock as the final delivered asset. Therefore, we operate a, C
corporation. As such, our profits are taxable at corporate level and
dividends, if any, are taxable at individual level. These are
typically taxed as a capital gain or dividend.
Competition
The business
acquisition market is highly competitive. We will compete based on a
number of factors that including experienced management and capital
availability. As a public company, the Common Stock as a viable
financial exit is attractive to business owners.
20
We will compete with many third parties engaged in investment
activities including REITs, specialty finance companies, hedge funds,
investment banking firms, lenders and other entities. Some of these
competitors have substantially greater marketing and financial
resources than we will have and generally may be able to accept or
manage more risk than we can prudently manage, including risks with
respect to the businesses being acquired. In addition, these same
entities may seek financing through the same channels that we do.
Therefore, we will compete for investors and funding in a market
where funds for business investment may decrease, or grow less than
the underlying demand.
Competition may limit
the number of suitable investment opportunities offered to us and
result in higher prices, making it more difficult for us to acquire
new investments on attractive terms. In addition, competition for
desirable investments could delay the investment of net proceeds from
this offering in desirable assets, which may in turn reduce our cash
flow from operations and negatively affect our ability to make or
maintain distributions.
Government
Regulation
Our business is subject
to many laws and governmental regulations. Changes in these laws and
regulations, or their interpretation by agencies and courts, occur
frequently.
Investment
Company Act of 1940
We
intend to conduct our operations so that we are not required to
register as an investment company under the Investment Company Act of
1940, as amended, or the 1940 Act.
Environmental
Matters
Many environmental regulations require specific zoning and
environmental regulations at the State, local and Federal level. The
Company may be held liable under these regulations when making
acquisitions. These laws and liabilities may be extended to the
Company's employees.
Under various federal,
state and local laws, ordinances and regulations, a current or
previous owner or operator of real property may be held liable for
the costs of removing or remediating hazardous or toxic substances.
These laws often impose clean-up responsibility and liability without
regard to whether the owner or operator was responsible for, or even
knew of, the presence of the hazardous or toxic substances. The costs
of investigating, removing or remediating these substances may be
substantial, and the presence of these substances may adversely
affect our ability to rent or sell the property or to borrow using
the property as collateral and may expose us to liability resulting
from any release of or exposure to these substances. If we arrange
for the disposal or treatment of hazardous or toxic substances at
another location, we may be liable for the costs of removing or
remediating these substances at the disposal or treatment facility,
whether or not the facility is owned or operated by us. We may be
subject to common law claims by third parties based on damages and
costs resulting from environmental contamination emanating from a
site that we own or operate. Certain environmental laws also impose
liability in connection with the handling of or exposure to
asbestos-containing materials, pursuant to which third parties may
seek recovery from owners or operators of real opportunities for
personal injury associated with asbestos-containing materials and
other hazardous or toxic substances.
The Company may
avoid the acquisition of businesses that are subject to specific
environmental regulations for the reasons stated above.
21
Other Regulations
The opportunities we
acquire likely will be subject to various federal, state and local
regulatory requirements, such as zoning and state and local fire and
life safety requirements. Failure to comply with these requirements
could result in the imposition of fines by governmental authorities
or awards of damages to private litigants. We generally will acquire
opportunities that are in material compliance with all regulatory
requirements. However, there can be no assurance that these
requirements will not be changed or that new requirements will not be
imposed which would require significant unanticipated expenditures by
us and could have an adverse effect on our financial condition and
results of operations.
Employees:
Currently, the company
has 19 full time employees in the various healthcare operations. The company may hire an additional number of employees as needed after effectiveness of this offering primarily to
support our acquisition and development efforts.
Legal Proceedings
We know of no existing
or pending legal proceedings against us, nor are we involved as a
plaintiff in any proceeding or pending litigation. There are no
proceedings in which any of our directors, officers or any of their
respective affiliates, or any beneficial stockholder, is an adverse
party or has a material interest adverse to our interest.
ITEM 8. DESCRIPTION OF PROPERTY
Our principal offices
are located at 2412 Irwin St. Melbourne, FL 32901 The office is
provided by our CEO at no cost to the Company. Additionally we have a distribution location at 16034 us hwy 19, Hudson FL 34667. This building has a related party ownership to our CFO, Cathy Julian. The office is
provided by our CFO at no cost to the Company. We do not currently lease or own any other real property.
22
ITEM 9. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The company was incorporated in State of Nevada on February 3,
1999 under the name ADVANCED MEDICAL TECHNOLOGIES INC. / CANADA. The
name was changed to Gold Entertainment Group, Inc. in April 2002. The
fiscal year end is January 31st. Our principal executive offices are
located at 2412 Irwin St., Melbourne, FL 32901
Gold Entertainment Group, Inc. is a Medical Device distributor. The Company signed an agreement on December 31, 2022, to acquire 51% of Devon Orthopedic Implants, LLC ("ORTHO") a Delaware limited liability company with offices in New Port Richey, Florida. ORTHO is an operating company and operates as a subsidiary of GOLD effective January 31, 2023. The other 49% ownership is EXLITES HOLDINGS INTERNATIONAL INC. a New Mexico corporation with a public trading symbol of EXHI.
The Company has recently expanded its healthcare operations with a 20% ownership in MEDWORX A INC, a medical billing company, during the first quarter of 2024.
We expect to use substantially all of the net proceeds from this offering to engage in the acquisition of existing businesses and becoming an SEC reporting Company. We expect to build a high-quality brand portfolio intended to generate income and to provide capital preservation, capital appreciation and portfolio diversification. These opportunities may be existing opportunities, new opportunities which we intend to acquire, make business improvements and provide financing for business expansion. We intend to conduct our operations so that neither we nor, our subsidiaries are required to register as an investment company under the Investment Company Act of 1940, as amended, or the 1940 Act.
We expect to use substantially all of the net proceeds from this
offering to engage in the acquisition of existing businesses and
develop their business operations and brands. We expect to build a
high-quality brand portfolio intended to generate current income and
to provide capital preservation, capital appreciation and portfolio
diversification. The opportunities may be existing businesses, or new
opportunities for which we intend to acquire, make business
improvements and provide additional capital.
We have been utilizing and may continue to utilize funds from Mr. Fytton our CEO,
who has informally agreed to advance funds to allow us to pay for
offering costs, filing fees, and professional fees. Mr. Fytton however, has no formal commitment, arrangement or legal obligation to
advance or loan funds to the company. In order to implement our plan
of operations for the next twelve-month period, we require
approximately $50,000 of funding from this offering. After a twelve-month period, we may need
additional financing, depending on the capital needs of the
acquisitions, but currently do not have any arrangements for such
financing.
For the next twelve months we
anticipate that we will need up to $1 million in operational funds to
carry out the acquisition and development of opportunities, The
Company may select different companies, geographic locations as and
when funds become available, therefore, we may need 1-2 months to
evaluate specific locations. For all business purposes if we are
short of funds we may request funds from our Chief Executive Officer,
however, there is no guarantee he will loan us funds.
The company has contacted institutions
about financing loans for our Company. We will only use such funds
when we feel we have both located a target acquisition, and the
Company has capital sufficient to complete the acquisition.
Generally, it is known to be a common
fact that banks, credit unions, and other comparable institutions may
not provide financing to a Company without substantial assets,
revenue and/or personal asset guarantees. Because of this we may face
difficulty in acquiring financing for our target opportunities or
funds necessary to provide the marketing and administration funds for
business expansion, including acquisitions. We are therefore
dependent upon our ability to attract private investment that may
include financing through convertible debentures or loans. This may
cause investors to lose some or all of your investment, due to the
debt being converted and the common stock of the Company diluted..
Once the Company locates a suitable
acquisition, we will determine the funds required to complete the
project. The amount of funds allocated for this may vary and will
depend on the target company and their capital needs.
Long term financing and commitments
will be required to fully implement our business plan. The Company
will always be dependent on outside funding for the full
implementation of our business plan. Our expansion may include
expanding our office facilities, hiring personnel and developing a
larger customer base.
If we do not receive adequate proceeds
from this offering to carry out our forecasted operations to operate
for the next 12 months our CEO Mr. Fytton, has
informally agreed to provide us funds, however, he has no formal
commitment, arrangement or legal obligation to provide funds to the
company.
If we need additional
cash and cannot raise it, we will either have to suspend operations
until we do raise the cash we need, or cease operations entirely.
We intend to conduct
our operations so that neither we nor any of our subsidiaries are
required to register as an investment company under the Investment
Company Act of 1940, as amended, or the 1940 Act.
23
POLICY WITH RESPECT TO CERTAIN
ACTIVITIES
(a) We do not plan to issue any new
shares of Common Stock outside of this Offering. Notwithstanding we
may issue new shares to employees, independent contractors or
acquisition targets.. Our Board of Directors may change our policy
regarding the issuance of preferred shares at any time and in their
discretion and without a vote of security holders.
(b) We do plan to borrow money from
private secured lenders to make acquisitions and finance business
activities, but will not do so unless this offering is successful.
Our business plan involves obtaining financing through the sale of
Common Stock. Our Management may change our policy regarding
borrowing money at any time and without a vote of security holders.
(c) We have not and do not have any
plans to make loans to other businesses. Our Management may change
our policy regarding plans to make loans to other persons or entities
in their discretion at any time and without a vote of security
holders.
(d) We have not and do not have any
plans to invest in the securities of other issuers for the purpose of
exercising control. Our Management may change our policy regarding
plans to make loans to other persons or entities in their discretion
at any time and without a vote of security holders.
(e) We have not and do not have
any plans to underwrite securities of other issuers. Our Management
may change our policy regarding plans to underwrite securities of
other issuers in their discretion at any time and without a vote of
security holders.
(f) We have not and do not have any
plans to engage in the purchase and sale (or turnover) of
investments. Our Management may change our policy regarding plans to
engage in the purchase and sale (or turnover) of investments at any
time and without a vote of security holders.
(g) We have not and do not have any
plans to offer securities in exchange for services. Our Management
may change our policy regarding plans to offer securities in exchange
for services at any time and without a vote of security holders.
(h) We have not and do not have any
plans to repurchase or otherwise reacquire its shares or other
securities. Our Management may change our policy regarding plans to
repurchase or otherwise reacquire its shares or other securities at
any time and without a vote of security holders.
(i) We do intend to make quarterly
and annual or other reports to security holders in the future,
although we have not concluded the nature, content and scope of such
reports at this time and such reports may contain financial
statements certified by independent public accountants. These reports
may be required by agencies such as the SEC and FINRA as well as
quotation systems and stock exchanges. Our Management may change or
eliminate our policy regarding plans to make quarterly and annual
reports available to security holders including the content at any
time and without a vote of security holders.
24
INVESTMENT POLICIES OF REGISTRANT
1. We plan to focus our on business
acquisition. Where these businesses own real estate as part of their
assets, we will evaluate the value assigned to the real estate
portion of the business separately. The Company may expand our
operations to acquire and lease real estate in states as part of our
operations. Our Management may change our existing policy regarding
target businesses at any time and without a vote of security holders.
We may invest some of our assets in the purchase of real estate,
where such purchases involve our business operations.
2. We may invest in any type of
business including but not limited to existing businesses and special
purpose buildings.
3. To support the market for its
public stock, we plan on commencing an extensive investor relations
program. We may also use a (to be identified) online funding platform
to sell shares pursuant to this offering but have no definitive plans
to do so.
4. We believe that our CEO and other
management has the necessary experience and industry contacts to
carry out our business plan.
5. Our policy is to acquire assets
primarily for income and not capital gain. Our Management may change
our existing policy regarding our method of operating and financing
of acquisitions at any time and without a vote of security holders.
6. We do not have a policy that
restricts us to the amount or percentage of assets which will be
invested in any specific business.
7. We do not have any other material
policy with respect to our proposed acquisition activities.
8. Investments in other securities.
We do not have any policy or plans at
this time to invest in any other types of securities. Our Management
may change our existing plan regarding an investment in any other
securities at any time and without a vote of security holders.
Since its inception,
the Company has devoted substantially all of its efforts to business
planning, research and development, recruiting management and staff
and raising capital. Accordingly, the Company is considered to be in
the development stage, since we are devoting substantially all of our
efforts to establishing our business and planned principal operations
have not commenced. The Company has generated minimal revenues from
operations and therefore lacks meaningful capital reserves.
25
Plan of Operations
Over the next twelve
months, the Company intends to focus on acquiring
businesses using the proceeds from this offering. Our officers and
directors will meet with businesses owners, brokers, consultants and
advisors in the finance industry to locate opportunities which
meet the Company's profile. We may engage other consultants to
conduct initial due diligence with respect to opportunities which may
be of interest to the Company.
IceLounge has a network
that includes a businesses owners, and believes that by utilizing
this network, they will be able to identify appropriate
opportunities. We plan to purchase these opportunities through the
sale of the Company's Common Stock and debt financing. We may also
acquire debt in the form of mezzanine or bridge financing. However,
we hope to limit our financing costs and our financing to direct
leverage of the business asset being acquired. We hope to finance
acquisition costs mostly with the sale of our Common Stock in this
offering.
Operating Results
Year analysis for the years ending January 31, 2024 and January 31, 2023
We had a net loss of $51,608 for the twelve months ended January 31, 2024 compared to a net loss of $62,119 for the twelve months ended January 31, 2023. Expenses of operation were $75,608 for the twelve months ended January 31, 2024 as compared to $62,119 for the year ended January 31, 2023.
Quarterly analysis for the period ending April 30, 2024 and April 30, 2023
We had a net loss of ($20,227) for the three months ended April 30, 2024 compared to a net loss of ($21,931) for the three months ended April 30, 2023. Expenses of operation were $72,175 for the three months ended April 30, 2024 as compared to $58,601 for the three months ended April 30, 2023.
Liquidity and Capital Resources for the year ending January 31, 2024 and January 31, 2023
Cash flows used by operating activities for the year ending January 31, 2024 were $(9,122) compared to cash used of $52,114) for the year ended January 31, 2023. The increase comparing those two periods was primarily due to a major change in operations. Cash flows used in investing activities were $203,141 and $(0) for the period ended January 31, 2024 and 2023, respectively. Cash flows gained from financing activities for the year ended January 31, 2024, were $152,898 compared to $(0) for the year ended January 31, 2023.
Liquidity and Capital Resources for the period ending April 30, 2024 and April 30, 2023
Cash flows used by operating activities for the period ending April 30, 2024 were $(55,929) compared to cash used of $28,835 for the period ended April 30, 2023. The increase comparing those two periods was primarily due to a major change in operations. Cash flows used in investing activities were $(0) and $(0) for the period ended April 30, 2024 and 2023, respectively. Cash flows gained from financing activities for the period ended April 30, 2024, 2023 were $(0) compared to $(0) for the period ended April 30, 2024.
To meet our need for cash we are attempting to raise money from this offering. The maximum aggregate amount of this offering will be required to fully implement our business plan. If we are unable to successfully generate revenue we may quickly use up the proceeds from this offering and will need to find alternative sources. If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely.
Off-Balance Sheet Arrangements
As of April 30, 2024 we did not have any off-balance sheet arrangements.
26
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND
SIGNIFICANT EMPLOYEES
The board of directors
elects our executive officers annually. A majority vote of the
directors who are in office is required to fill vacancies. Each
director shall be elected for the term of one year, and until her
successor is elected and qualified, or until her earlier resignation
or removal. Our directors and executive officers are as follows:
The table below lists
our directors and executive officers, their ages, and the date of
their first appointment to such positions. Each position is currently
held with an indefinite term of office.
|
|
|
|
Name
|
Position
|
Age
|
Date of
First Appointment
|
Hamon Fytton
|
Chief Executive Officer, Secretary & Director
|
70
|
April 30, 2002 & November, 2023
|
James
Kander
|
Director
|
55
|
Dec 11, 2017
|
Cathy Julian
|
Chief Financial Officer &
Director
|
62
|
November, 2023
|
Hamon Fytton,
CEO and Director
He is currently the CEO, Director and a large shareholder of Gold Entertainment
Group, Inc. He originally acquired control of the Company in April 2002. In July 2018 he sold control to IceLounge Media Inc., and remained as a Director overseeing the transition and a planned third-party merger arranged by IceLounge, which did not take place.
Over the last five years Mr. Fytton acted as a consultant and board member
to several public companies as well as private companies seeking to
become public. In this capacity he has overseen the preparation of
numerous registration statements, subscription agreements, SEC
filings, prospectus offerings and general company information
packets. He has also often acted as an Officer and/or director for
several companies, aiding in their transition from private to public.
He has conducted several seminars on the JOBS Act and the
Crowdfunding and REG A+ regulations. He continues to consult with
various investment groups in the US and other countries.
Cathy Julian, Chief Financial Officer and Director
Cathy Julian is a CPA and has managed a series of family owned businesses in the medical device space for over 10 years. She is the spouse of Mark Julian and both arranged the acquisition of Devon Ortho, now Innovative Solutions LLC, in December 2002. She joined the board of Directors and serves a the company CFO since that time.
James
Kander Director
With over 10 years experience in the business development,
Mr. Kander has worked on businesses acquisitions, business
development, and capital raises. Mr. Kander is a shareholder in IceLounge Media Inc., which is a large shareholder in GOLD. In his capacity as a Director, he acts as a liaison between the companies.
Code
of Ethics Policy
We have not yet adopted
a code of ethics that applies to our principal executive officer,
principal financial officer, principal accounting officer or
controller or persons performing similar functions.
Board Composition
Our Bylaws provide that
the Board of Directors shall consist of an unlimited number
ofdirectors. Each director of the Company serves until his successor
is elected and qualified, subject to removal by the Company's
majority shareholders. Each officer shall hold their offices for such
terms and shall exercise such powers and perform such duties as shall
be determined by the Board of Directors, and shall hold his office
until his successor is elected and qualified, or until his earlier
resignation or removal.
Potential Conflicts of Interest
Since we do not have an
audit or compensation committee comprised of independent directors,
the functions that would have been performed by such committees are
performed by our directors. Thus, there is a potential conflict of
interest in that our directors and officers have the authority to
determine issues concerning management compensation and audit issues
that may affect management decisions. We are not aware of any other
conflicts of interest with any of our executives or directors.
Director Independence
Our board of directors
has undertaken a review of the independence of each director and
considered whether any director has a material relationship with us
that could compromise his ability to exercise independent judgment in
carrying out his responsibilities. As a result of this review, our
board of directors determined that our directors do not meet the
independence requirements, according to the applicable rules and
regulations of the SEC.
Corporate Governance
There have been no
changes in any state law or other procedures by which security
holders may recommend nominees to our board of directors. In addition
to having no nominating committee for that purpose, we currently have
no specific audit committee and no audit committee financial expert.
Based on the fact that our current business affairs are simple, any
such committees are excessive and beyond the scope of our business
and needs.
Family Relationships
Cathy Julian is the spouse of Mark Julian, who is the primary shareholder of MEDWORX A, Inc. which is a large shareholder of both PREFERRED SERIES B and COMMON SHARES of GOLD.
27
Involvement in Certain Legal
Proceedings
No officer, director, or persons
nominated for such positions, promoter or significant employee has
been involved in the last ten years in any of the following:
Any bankruptcy petition filed by or
against any business of which such person was a general partner or
executive officer either at the time of the bankruptcy or within two
years prior to that time,
Any conviction in a criminal proceeding or being subject to a
pending criminal proceeding (excluding traffic violations and other
minor offenses),
Being subject to any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining, barring,
suspending or otherwise limiting her involvement in any type of
business, securities or banking activities,
Being found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading Commission
to have violated a federal or state securities or commodities law,
and the judgment has not been reversed, suspended, or vacated.
Having any government agency, administrative agency, or
administrative court impose an administrative finding, order, decree,
or sanction against them as a result of their involvement in any type
of business, securities, or banking activity.
Being the subject of a pending administrative proceeding related
to their involvement in any type of business, securities, or banking
activity.
Having any administrative proceeding been threatened against you
related to their involvement in any type of business, securities, or
banking activity.
Significant Employees
None.
28
ITEM 11. COMPENSATION OF DIRECTORS AND EXECUTIVE
OFFICERS
The following table sets forth
information about the annual compensation of each of our two
highest-paid persons who were directors or executive officers during
our last completed fiscal year.
|
|
|
|
|
|
|
Cash
|
Other
|
Total
|
|
Capacities in which
|
compensation
|
compensation
|
compensation
|
Name
|
compensation was received
|
($)
|
($)
|
($)
|
Hamon Francis Fytton
|
CEO, Director
|
-0-
|
-0-
|
-0-
|
Cathy Julian
|
Chief Financial Officer & Director
|
-0-
|
-0-
|
-0-
|
James
Kander
|
Director
|
-0-
|
-0-
|
-0-
|
Compensation of Directors
We do not compensate
our directors for attendance at meetings. We reimburse our officers
and directors for reasonable expenses incurred during the course of
their performance. We have no long-term incentive plans.
29
ITEM 12. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN
SECURITY HOLDERS
The following tables
set forth the ownership, as of the date of this prospectus, of our
common stock by each person known by us to be the beneficial owner of
more than 5% of our outstanding common stock, our directors, and our
executive officers and directors as a group. To the best of our
knowledge, the persons named have sole voting and investment power
with respect to such shares, except as otherwise noted. There
are not any pending or anticipated arrangements that may cause a
change in control.
The information
presented below regarding beneficial ownership of our voting
securities has been presented in accordance with the rules of the
Securities and Exchange Commission and is not necessarily indicative
of ownership for any other purpose. Under these rules, a person is
deemed to be a "beneficial owner" of a security if that
person has or shares the power to vote or direct the voting of the
security or the power to dispose or direct the disposition of the
security. A person is deemed to own beneficially any security as to
which such person has the right to acquire sole or shared voting or
investment power within 60 days through the conversion or exercise of
any convertible security, warrant, option or other right. More than
one person may be deemed to be a beneficial owner of the same
securities. The percentage of beneficial ownership by any person as
of a particular date is calculated by dividing the number of shares
beneficially owned by such person, which includes the number of
shares as to which such person has the right to acquire voting or
investment power within 60 days, by the sum of the number of shares
outstanding as of such date plus the number of shares as to which
such person has the right to acquire voting or investment power
within 60 days. Consequently, the denominator used for calculating
such percentage may be different for each beneficial owner. Except as
otherwise indicated below and under applicable community property
laws, we believe that the beneficial owners of our common stock
listed below have sole voting and investment power with respect to
the shares shown.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount and
|
|
|
|
|
|
|
Amount and
|
|
|
nature of
|
|
|
|
|
|
|
nature of
|
|
|
beneficial
|
|
|
Percent
|
|
|
Name and address
|
beneficial
|
|
|
ownership
|
|
|
of class
|
|
Title of class
|
of beneficial owner(1)
|
ownership (2)
|
|
|
acquirable
|
|
|
(3)
|
|
PREFERRED SERIES A
|
IceLounge Media, Inc. (1)
|
2,000,000
|
|
|
-0-
|
|
|
100%
|
|
PREFERRED SERIES B
|
Hamon Fytton
|
22,000
|
|
|
-0-
|
|
|
7% (2)
|
|
PREFERRED SERIES B
|
Cathy Julian (2)
|
200,000
|
|
|
-0-
|
|
|
62% (2)
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARES
|
Hamon Fytton
|
3,309,500,000
|
|
|
-0-
|
|
|
19.7%
|
|
COMMON SHARES
|
Medworx A Inc.
|
3,309,500,000
|
|
|
-0-
|
|
|
19.7%
|
|
COMMON SHARES
|
IceLounge Media, Inc.
|
3,309,500,000
|
|
|
-0-
|
|
|
19.7%
|
|
|
|
|
|
(1)
|
The address of those listed is 2412 Irwin St., Melbourne, FL 32901, except for IceLounge Media, Inc. & James Kander whose address is 412 Broadway, Ste 2, New York City, New York 10013.
|
|
(2)
|
James Kander and others are shareholders in IceLounge Media, Inc., that owns all 2,000,000 shares of SERIES A Preferred Stock. Each SERIES A
Preferred Share votes at 1:5,000 to Common Stock. Therefore this
represents majority voting control of the Company.
|
|
(3)
|
Based on 16,812,001,513
of Common stock outstanding prior to this Offering.
|
30
ITEM 13. INTEREST OF
MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
Since inception, there have been no transactions, except as stated herein, or proposed
transactions, which have materially affected or will materially
affect us in which any director, executive officer or beneficial
holder of more than 5% of the outstanding common, or any of their
respective relatives, spouses, associates or affiliates, has had or
will have any direct or material indirect interest. We have no policy
regarding entering into transactions with affiliated parties.
The following related party transactions are in effect:
As listed in ITEM 12. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS of this offering;
-
Medworx A Inc. is controlled by Mark Julian, the spouse of our CFO, Cathy Julian, and owns 3,309,500,000 shares of Common stock.
- James Kander, a Director, and others are shareholders in IceLounge Media, Inc., that owns all 2,000,000 shares of SERIES A Preferred Stock.
- GOLD ENTERTAINMENT GROUP, INC. is a 20% owner of Medworks as shown in the company's FINANCIAL STATEMENTS of this offering.
Conflicts of Interest and Corporate
Opportunities
The officers and
directors have acknowledged that under Florida law that they must
present to the Company any business opportunity presented to them as
an individual that met the Oklahoma's standard for a corporate
opportunity: (1) the corporation is financially able to
exploit the opportunity; (2) the opportunity is within the
corporation's line of business; (3) the corporation has an interest
or expectancy in the opportunity; and (4) by taking the opportunity
for his own, the corporate fiduciary will thereby be placed in a
position inimical to their duties to the corporation. This is
enforceable and binding upon the officers and directors as it is part
of the Code of Ethics that every officer and director is required to
execute. However, the Company has not adopted formal written policies
or procedures regarding the process for how these corporate
opportunities are to be presented to the Board. It is the Company"s
intention to adopt such policies and procedures in the immediate
future.
31
ITEM 14. SECURITIES BEING OFFERED
Common Shares
Our authorized capital stock consists of (i) twenty-five
billion (25,000,000,000) shares of Common Stock, par value $0.0001
per share (the "Common Stock"), (ii) twenty-five million
(25,000,000) shares of PREFERRED of all Classes, par value $0.0001
per share (the "PREFERRED Stock"), authorized at the time
of this offering. As of July 15, 2024, we have 16,812,001,513 shares
of Common stock and 2,000,000 PREFERRED SERIES A (super voting only) and 322,000 PREFERRED SERIES B (convertible) shares issued and outstanding, at the time of this offering.
The following is a summary of the rights of our capital stock as
provided in our certificate of incorporation, as amended, and bylaws.
For more detailed information, please see our articles of
incorporation and bylaws, which have been filed as exhibits to the
Offering Statement of which this Offering Circular is a part.
Common Stock
The holders of outstanding shares of Common Stock are entitled to
receive dividends out of assets or funds legally available for the
payment of dividends of such times and in such amounts as the board
from time to time may determine. Holders of Common Stock are entitled
to one vote for each share held on all matters submitted to a vote of
shareholders. There is no cumulative voting of the election of
directors then standing for election. The Common Stock is not
entitled to pre-emptive rights and is not subject to conversion or
redemption. Upon liquidation, dissolution or winding up of our
company, the assets legally available for distribution to
stockholders are distributable ratably among the holders of the
Common Stock after payment of liquidation preferences, if any, on any
outstanding payment of other claims of creditors.
Preferred Stock
The Preferred Stock of the Company has several specific
designations, listed below, and the resulting possible effect on the
Company's securities it enables. Total: 5,000,000 preferred shares
authorized, $0.0001 par value.
Ownership - There are 2,322,000
shares issued and outstanding of all classes of Preferred Stock, as
of the date of this Offering.
Class A Preferred Stock -
2,000,000 shares issued and outstanding as of the date of this Offering. Such
shares were issued, in prior years, at a de minimis value . Voting
as 5,000 shares of common stock for each preferred share
outstanding. No dividends. Convertible in the same proportion as
voting rights.shares of Preferred Stock of all classes. These shares
do not have an active "Conversion Provision".
Class B Preferred stock - 1,000,000 shares authorized, $1.00
stated value, 322,000 shares issued and outstanding as of the date of this Offering,
convertible into common shares.
There are 2,322,000 shares of all classes of Preferred Stock
issued and outstanding, as of the date of this Offering. No dividend.s of Preferred Stock of all
classes. Additional classes of preferred shares may contain other
designations, resulting in restrictions regarding the operation of
the Company. The Company may increase the number of authorized
shares of all classes at any time, following the qualification of
this offering.
Options and Warrants
The management may at some future date decide that it is in the
best interests of the shareholders to issue warrants. At the time of
this filing, there are no immediate plans to issue, nor any
outstanding warrants or options.
Dividends. Subject to preferences that may be applicable to
any then-outstanding preferred stock (in the event we create
preferred stock), holders of common stock are entitled to receive
ratably those dividends, if any, as may be declared from time to time
by the board of directors out of legally available funds.
Liquidation Rights. In the event of our liquidation,
dissolution or winding up, holders of common stock will be entitled
to share ratably in the net assets legally available for distribution
to stockholders after the payment of all of our debts and other
liabilities and the satisfaction of any liquidation preference
granted to the holders of any then-outstanding shares of preferred
stock that may be created in the future.
Other Rights. Holders of common stock have no preemptive,
conversion or subscription rights and there are no redemption or
sinking fund provisions applicable to the common stock. The rights,
preferences and privileges of the holders of common stock are subject
to, and may be adversely affected by, the rights of the holders of
shares of any series of preferred stock that we may create in the
future.
Transfer Agent and
Registrar
The Transfer Agent of
recored is Securities Transfer Corporation, 2901 N. Dallas Parkway,
Suite 380, Plano, TX 75093
Shares Eligible
for Future Sale
Prior to this offering,
there is a public market for our common stock, which is traded under
the symbol GEGP on OTCMarkets.com.. We cannot predict the effect, if
any, that market sales of shares of our common stock or the
availability of shares of our common stock for sale will have on the
market price of our common stock. Sales of substantial amounts of our
common stock in the public market could adversely affect the market
prices of our common stock and could impair our future ability to
raise capital through the sale of our equity securities.
We have outstanding 16,812,001,513 shares of Common Stock. None of
these shares will be freely tradable without restriction or further
registration under the Securities Act, except as allowed following a
qualification of this offering under Regulation A +, unless those
shares are purchased by our affiliates, as that term is defined in
Rule 144 under the Securities Act.
Some of the 16,812,001,513 shares of Common stock issued
prior to this offering are restricted as a result of securities laws.
Restricted securities may be sold in the public market only if they
have been registered or if they qualify for an exemption from
registration under Rule 144 under the Securities Act.
32
ITEM 15. FINANCIAL STATEMENTS
15A.
For the years ending January 31, 2024 & January 31, 2023
|
|
|
|
|
|
15B.
For the period ended April 30, 2024
|
|
15A. FINANCIAL STATEMENTS
GOLD
ENTERTAINMENT GROUP, INC.
FINANCIAL
STATEMENTS - UNAUDITED
For
the years ending January 31, 2024 & January 31, 2023
|
|
CONTENTS:
|
|
|
|
|
|
|
|
Balance Sheet for the years
ending January 31, 2024 & January 31, 2023
|
|
|
|
Statement of Operations for
the years ending January 31, 2024 & January 31, 2023
|
|
|
|
Statement of Stockholder's
Deficit for the year ending January 31, 2024
|
|
|
|
Statements of Cash Flows for
the years ending January 31, 2024 & January 31, 2023
|
|
|
|
Notes to the Financial
Statements
|
|
F1
F2
F3
F4
F5
GOLD ENTERTAINMENT GROUP, INC NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
Jan 31, 2024
NOTE 1 - NATURE OF ORGANIZATION AND BASIS OF PRESENTATION
Nature of Organization
Gold Entertainment Group, Inc. ("Gold" or the "Company") was originally incorporated in the State of Nevada on February 3, 1999 under the name Advanced Medical Technologies, Inc. The Company was organized formerly for the purpose of establishing a multimedia internet-based communication network between the healthcare industry manufacturers and the key base managers in the medical field to advertise and promote the manufacturers's products. As a result of the abandonment of its patent rights and termination of its previous consulting agreements, as of March 26, 2002, the Company decided not to pursue its previous business plan involving multimedia internet bases. On March 26, 2002, the Company consummated a "reverse acquisition" and changed its name to Gold Entertainment Group, Inc. On August 28, 2007, the Company filed a certificate of domestication with the State of Florida whereby the Company became a Florida corporation. Simultaneously, the Company's capital structure was increased to 25,000,000,000 common shares having a par value of $0.0001 per share and 50,000,000 preferred shares having no par value per share.
Basis of Presentation
The consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States ofAmerica ("GAAP").
Reclassifications
Certain reclassifications were made to the prior year consolidated financial statements to conform to current year presentations. There was no effect on loss per share.
NOTE 2 - GOING CONCERN
Gold's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Gold has accumulated net losses through January 31, 2024 in the amount of $3,651,472. This factor raises substantial doubt as to Gold's ability to obtain debt and/or equity financing and achieve profitable operations.
Gold's management intends to raise additional operating funds through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors. Ultimately, Gold will need to achieve profitable operations in order to continue as a going concern.
There are no assurances that Gold will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or
(2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support Gold's working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, Gold will have to raise
additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, Gold may be required to curtail its operations.
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from these estimates. Significant estimates include the valuation allowance on deferred tax assets.
Cash and Cash Equivalents
The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents..
Fair Value of Financial Instruments
The Company follows FASBASC 820, Fair Value Measurements and Disclosures, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
-
Level 1 - Quoted prices for identical assets and liabilities in active markets;
-
Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and;
-
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
The carrying amounts of financial instruments, including cash and cash equivalents, accounts payable, accrued expenses, and the amounts due to related parties, approximated fair value as of January 31, 2024 and January 31, 2023 because of the relative short-term nature of these instruments.
Shares for Services and Other Assets
The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date, as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option-pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. The Company has historically issued stock
options and vested and no vested stock grants to employees and outside directors whose only condition for vesting has been continued employment or service during the related vesting or restriction period.
Income taxes
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company's balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company's valuation allowance in a period are recorded through the income tax provision on the statements of operations.
ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 74010, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority.An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained.Additionally, ASC 740-10 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
Basic and Diluted Net Loss Per Common Share
Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potentially dilutive securities consist of the incremental common shares issuable upon exercise of stock options and convertible debt and equity instruments, and are excluded from the computation if their effect is anti-dilutive. There were no potentially dilutive items outstanding during the years ended January 31, 2024 and January 31, 2023, respectively.
Concentrations of Credit Risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts.
Recently Issued Accounting Standards
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's financial statements upon adoption. No new pronouncements that would affect these financial statements had been issued during or subsequent to the issuance of these financial statements.
NOTE 4 - RELATED PARTY TRANSACTIONS
From time to time the controlling shareholder makes advances and get repayments as available. During the year ended January 31, 2024 and 2023 these advances (repayments) totaled $3,334 at January 31, 2024 and $60,000 for January 31, 2023. On 21 January, 2023 the CFO converted 55,000 shares of Class B Preferred stock into 440,000,000 common shares for the benefit of a third party.
NOTE 5 - STOCKHOLDERS' DEFICIT
Common Stock
The Company is authorized to issue 25,000,000,000 shares of common stock, $.0001 par value. There were 16,812,001,513 and 9,181,501,513 shares issued and outstanding at January 31, 2024 and 2023, respectively.
Preferred Stock
The Company is authorized to issue 50,000,000 shares of preferred stock as described below:
Total Series Class A Preferred Stock, 25,000,000 shares authorized, no par value.2,000,000 shares issued and outstanding at July 31, 2024 and 2023. Such shares were issued, in prior years, at a de minimis value . Voting as 5,000 shares of common stock for each preferred share outstanding. No dividends. Convertible in the same proportion as voting rights.
Class B Preferred stock, 75,000 shares authorized, $1.00 stated value. There were 0 (nil) shares and 55,000 shares issued and outstanding at January 31, 2024 and 2023, respectively. On 21 January, 2023 the CFO had converted 55,000 shares of Class B Preferred stock into 440,000,000 common shares for the benefit of a third party (see attached report).
NOTE 6 - COMMITMENTS AND CONTINGENCIES
Legal Matters
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of January 31, 2024 and 2023, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.
There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
NOTE 7 - SUBSEQUENT EVENTS
The Company signed an agreement on December 31, 2022, to acquire 51% of Devon Orthopedic Implants, LLC ("ORTHO") a Delaware limited liability company with offices in Pennsylvania. ORTHO is an operating company and will become a subsidiary of GOLD effective January 31, 2023.
The acquisition involved three parties, with GOLD acquiring majority control, one party selling their percentage of the company and the other remaining with 49% ownership. This other party is EXLITES HOLDINGS INTERNATIONAL INC. a New Mexico corporation with a public trading symbol of EXHI.
Under the terms of the agreement GOLD has agreed to issue a total of two-hundred fifty thousand SERIES B PREFERRED SHARES (250,000) in return for its 51% equity interest in ORTHO.As of the reporting period of this report, 31 January 2024, GOLD was unable to issue these shares because of a delay in increasing the authorized number of Preferred SERIES B shares.
GOLD had applied to change its state of incorporation from Florida to Wyoming. The change went effective March 14, 2023. In conjunction with this move GOLD restated its share designations and increased the authorized Preferred shares to six million (6,000,000) for all classes. The SERIES B shares were increased from seventy-five thousand (75,000) to one million (1,000,000) authorized to enable GOLD to complete the acquisition of DEVON ORTHO and other companies in the future.
With the move to Wyoming, the Company also changed its name to GOLD ENTERPRISE GROUP, INC. to better reflect its expanded business operations. The Company will file a FINRA corporate action notice for the name change and request that it retain its CUSIP number and stock symbol.
With the move to Wyoming, the Company, temporarlaly also changed its name to GOLD ENTERPRISE GROUP, INC., and in July 2024 changed it back to GOLD ENTERTAINMENT GROUP, INC. The Company has filed this notice with the State of Wyoming at the time of this prospectus and is waiting confirmation of this change from the State.
END OF NOTES TO FINANCIAL STATEMENTS For the years ending January 31, 2024 & January 31, 2023
F6
15B. FINANCIAL STATEMENTS
GOLD
ENTERTAINMENT GROUP, INC.
FINANCIAL
STATEMENTS - UNAUDITED
For
the period ended April 30, 2024.
CONTENTS: |
|
Balance Sheet as of April 30, 2024.
|
|
|
|
Statement of Operations as of April 30, 2024.
|
|
|
|
Statements of Stockholder's
Deficit from inception to April 30, 2024.
|
|
|
|
Statements of Cash Flows as of April 30, 2024.
|
|
|
|
Notes to the Financial
Statements
|
|
|
|
F7
F8
F9
F10
F11
GOLD ENTERTAINMENT GROUP, INC NOTES TO THE FINANCIAL STATEMENTS
(Unaudited)
Apr 30, 2024
NOTE 1 - NATURE OF ORGANIZATION AND BASIS OF PRESENTATION
Nature of Organization
Gold Entertainment Group, Inc. ("Gold" or the "Company") was originally incorporated in the State of Nevada on February 3, 1999 under the name Advanced Medical Technologies, Inc. The Company was organized formerly for the purpose of establishing a multimedia internet-based communication network between the healthcare industry manufacturers and the key base managers in the medical field to advertise and promote the manufacturers&39; products. As a result of the abandonment of its patent rights and termination of its previous consulting agreements, as of March 26, 2002, the Company decided not to pursue its previous business plan involving multimedia internet bases. On March 26, 2002, the Company consummated a "reverse acquisition" and changed its name to Gold Entertainment Group, Inc. On August 28, 2007, the Company filed
a certificate of domestication with the State of Florida whereby the Company became a Florida corporation. Simultaneously, the Company's capital structure was increased to 25,000,000,000 common shares having a par value of $0.0001 per share and 50,000,000 preferred shares having no par value per share.
Basis of Presentation
The consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("GAAP").
Reclassifications
Certain reclassifications were made to the prior year consolidated financial statements to conform to current year presentations. There was no effect on loss per share.
NOTE 2 - GOING CONCERN
Gold's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Gold has accumulated net losses through Jan 31, 2024 in the amount of $3,651,472. This factor raises substantial doubt as to Gold's ability to obtain debt and/or equity financing and achieve profitable operations.
Gold's management intends to raise additional operating funds through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors. Ultimately, Gold will need to achieve profitable operations in order to continue as a going concern.
There are no assurances that Gold will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or
(2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support Gold's working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, Gold will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available, Gold may be required to curtail its operations.
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities and assets at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates include the valuation allowance on deferred tax assets.
Cash and Cash Equivalents
The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents.
Fair Value of Financial Instruments
The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, which provides a framework for measuring fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard also expands disclosures about instruments measured at fair value and establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
Level 1 - Quoted prices for identical assets and liabilities in active markets;
Level 2 - Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and;
Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
The carrying amounts of financial instruments, including cash and cash equivalents, accounts payable, accrued expenses, and the amounts due to related parties, approximated fair value as of quarter ending Apr 30, 2024 and January 31, 2024 and January 31, 2023
because of the relative short-term nature of these instruments.
Shares for Services and Other Assets
The Company accounts for stock-based compensation based on the fair value of all option grants or stock issuances made to employees or directors on or after its implementation date, as well as a portion of the fair value of each option and stock grant made to employees or directors prior to the implementation date that represents the unvested portion of these share-based awards as of such implementation date, to be recognized as an expense, as codified in ASC 718. The Company calculates stock option-based compensation by estimating the fair value of each option as of its date of grant using the Black-Scholes option-pricing model. These amounts are expensed over the respective vesting periods of each award using the straight-line attribution method. Compensation expense is recognized only for those awards that are expected to vest, and as such, amounts have been reduced by estimated forfeitures. The Company has historically issued stock options and vested and no vested stock grants to employees and outside directors whose only condition for vesting has been continued employment or service during the related vesting or restriction period.
Income taxes
The Company accounts for income taxes under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Company's balance sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The Company must assess the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, the Company must establish a valuation allowance. Changes in the Company's valuation allowance in a period are recorded through the income tax provision on the statements of operations.
ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 74010, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more- likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
Basic and Diluted Net Loss Per Common Share
Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period and, if dilutive, potential common shares outstanding during the period. Potentially dilutive securities consist of the incremental common shares issuable upon the exercise of stock options and convertible debt and equity instruments and are excluded from the computation if their effect is anti-dilutive. There were no potentially dilutive items outstanding during the quarter on Apr 30, 2024 and the prior year end of January 31, 2024.
Concentrations of Credit Risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts.
Recently Issued Accounting Standards
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's financial statements upon adoption. No new pronouncements that would affect these financial statements had been issued during or subsequent to the issuance of these financial statements.
NOTE 4 - RELATED PARTY TRANSACTIONS
From time to time the controlling shareholder makes advances and gets repayments as available. During the year ended Jan 31, 2024 and 2023 these advances (repayments) totaled $3,334 at Apr
30, 2024 and $60,000 for January 31, 2024. On 21 January, 2023 the then CFO, Mr. Fytton, converted 55,000 shares of Class B Preferred stock into 440,000,000 common shares for the benefit of a third party.
NOTE 5 - STOCKHOLDERS' DEFICIT Common Stock
The Company is authorized to issue 25,000,000,000 shares of common stock, $.0001 par value. There were 16,812,001,513 shares issued and outstanding on Apr 30, 2024.
Preferred Stock
The Company is authorized to issue 6,000,000 shares of preferred stock as described below:
Total Series Class A Preferred Stock, 25,000,000 shares authorized, no par value 2,000,000 shares issued and outstanding at Apr 30, 2024 and 2023. Such shares were issued, in prior years, at a de minimis value. Voting as 5,000 shares of common stock for each preferred share outstanding. No dividends. Convertible in the same proportion as voting rights.
Class B Preferred stock, 1,000,000 shares authorized, $1.00 stated value. There were 0 (nil) shares and 322,000 shares issued and outstanding on Apr 30, 2024, respectively. On 21 January 2023 the then CFO, Mr. Fytton, had converted 55,000 shares of Class B Preferred stock into 440,000,000 common shares for the benefit of a third party (see attached report).
NOTE 6 - COMMITMENTS AND CONTINGENCIES Legal Matters
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of Apr 30, 2024, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.
There are no proceedings in which any of our directors, officers affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
NOTE 7 - SUBSEQUENT EVENTS
The Company signed an agreement on December 31, 2022, to acquire 51% of Devon Orthopedic Implants, LLC "ORTHO") a Delaware limited liability company with offices in New Port Richey, Florida. ORTHO is an operating company and will become a subsidiary of GOLD effective January 31, 2023.
The acquisition involved three parties, with GOLD acquiring majority control, one party selling their percentage of the company and the other remaining with 49% ownership. This other party is EXLITES HOLDINGS INTERNATIONAL INC. a New Mexico corporation with a public trading symbol of EXHI.
Under the terms of the agreement, GOLD has agreed to issue a total of two-hundred fifty thousand SERIES B PREFERRED SHARES (250,000) in return for its 51% equity interest in ORTHO. As of the reporting period of this report, 30 April 2023, GOLD was unable to issue these shares because of a delay in increasing the authorized number of Preferred SERIES B shares.
GOLD had applied to change its state of incorporation from Florida to Wyoming. The change went effective March 14, 2023. In conjunction with this move, GOLD restated its share designations and increased the authorized Preferred shares to six million (6,000,000) for all classes. The SERIES B shares were increased from seventy-five thousand (75,000) to one million (1,000,000) authorized to enable GOLD to complete the acquisition of ORTHO and other companies in the future.
With the move to Wyoming, the Company, temporarlaly also changed its name to GOLD ENTERPRISE GROUP, INC., and in July 2024 changed it back to GOLD ENTERTAINMENT GROUP, INC. The Company has filed this notice with the State of Wyoming at the time of this prospectus and is waiting confirmation of this change from the State.
As of the date of filing of this report, the Company's Transfer Agent has been authorized to issue the shares to complete the acquisition of ORTHO.
The company purchased 20% of Medworx A Inc., which operates the subsidiary Medworx Home Medical Supplies LLC based out Ridgeland, MS., which is a medical billing company.
The Company has engaged the services of a PCAOB audit firm for the purpose of becoming an SEC reporting company as in its prior history. It was decided to commence the steps necessary following the April 30th quarterly report which was filed on June 29, 2024 on OTCMARKETS.
END OF NOTES TO FINANCIAL STATEMENTS: For the period ended April 30, 2024.
F15
PART III - EXHIBITS
ITEM 16 & 17. INDEX TO EXHIBITS & DESCRIPTION
Exhibit
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Title
of Document
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No.
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3.1
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Articles
of Incorporation
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3.2
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Amendment
to Articles of Incorporation
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3.3
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Bylaws
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10.1
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OPINION OF COUNSEL
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18.
SIGNATURES
Pursuant
to the requirements of the Regulation A, the issuer certifies that it
has reasonable grounds to believe that it meets all of the
requirements for filing on Form 1-A and has duly caused this offering
statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Melbourne, State of Florida, on
July 15, 2024.
This
offering statement has been signed by the following persons in the
capacities and on the dates as indicated.
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Gold Entertainment Group, Inc.
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BY:
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/s/ Cathy Julian
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Name:
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CATHY JULIAN
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Title:
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Chief Financial Officer
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/s/ Hamon Francis Fytton
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Name:
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HAMON FRANCIS FYTTON
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Title:
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Chief Executive Officer
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July 15, 2024
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Gold Entertainment Group, Inc. - Offering Circular
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EX3.2
ARTICLES OF
INCORPORATION
IN COMPLIANCE WITH CHAPTER 607, F.S.
ARTICLE I
NAME
THE NAME OF THE CORPORATION SHALL
BE:
GOLD
ENTERTAINMENT GROUP, INC.
ARTICLE II PRINCIPAL
OFFICE
THE PRINCIPAL PLACE OF
BUSINESS/MAILING ADDRESS
IS:
750 E.
SAMPLE ROAD, POMPANO BEACH, FL 33064
AND A
MAILING ADDRESS :
2805 EAST
OAKLAND PARK BLVD., SUITE 363, FT. LAUDERDALE. FL 33306
ARTICLE III
PURPOSE
THE PURPOSE FOR WHICH THE CORPORATION IS
ORGANIZED:
Any and
all lawful business.
ARTICLE IV
SHARES
THE NUMBER OF SHARES OF STOCK
IS:
1. Common Stock. The
maximum number of shares of common stock that this corporation is authorized to
have outstanding at any one time is 25,000,000,000 (25 billion) shares of common
stock, $0.0001 par value per share.
2. Preferred Stock. (a)
The maximum number of shares of preferred stock that this corporation is
authorized to have outstanding at any one time is 50,000,000 (50 million) shares
of preferred stock, no par value per share.
(b)
Subject to the requirements of Chapter 607 of the laws of the State of Florida,
the Board of Directors is authorized and empowered to issue shares of preferred
stock in one or more series and with such designations, preferences and
limitations as the Board of Directors, in its business judgment, determines is
in the best interest of the corporation.
ARTICLE V
INITIAL DIRECTORS AND/ OR
OFFICERS
THE NAME(S) AND ADDRESS(ES) AND SPECIFIC TITLES:
Brian
Stetten, 2805 EAST OAKLAND PARK BLVD., #363, FT. LAUDERDALE. FL
33306
ARTICLE VI INITIAL
REGISTERED AGENT AND STREET ADDRESS
THE NAME
AND FLORIDA
STREET ADDRESS (P.O. BOX NOT ACCEPTABLE) OF THE REGISTERED AGENT IS:
Corporate
Creations Network Inc.
11380
Prosperity Farms Road #221E
Palm
Beach Gardens, FL 33410
ARTICLE VII
INCORPORATOR
THE NAME
AND ADDRESS OF THE
INCORPORATOR IS:
Corporate
Creations International, Inc.
11380
Prosperity Farms Road #221E
Palm
Beach Gardens, FL 33410
*********************************************************************************************
HAVING BEEN NAMED AS REGISTERED AGENT
AND TO ACCEPT SERVICE OF PROCESS FOR THE ABOVE STATED CORPORATION AT THE PLACE
DESIGNATED IN THIS CERTIFICATE, I AM FAMILIAR WITH AND ACCEPT THE
APPOINTMENT AS REGISTERED AGENT AND AGREE TO ACT IN THIS
CAPACITY.
______________________________________ __________________
Signature/Registered
Agent Date
______________________________________ __________________
Signature/Incorporator Date
EX3.2
BYLAWS
OF
GOLD ENTERTAINMENT GROUP, INC.
ARTICLE I
SHAREHOLDERS
SECTION 1. Annual Meetings
(a) The annual meeting of the shareholders of the Corporation, shall
be held at the principal office of the Corporation in the State of
Florida or at such other place within or without the State of Florida
as may be determined by the Board of Directors and as may be
designated in the notice of such meeting. The meeting shall be held
on the third Tuesday of February of each year or on such other day as
the Board of Directors may specify. If said day is a legal holiday,
the meeting shall be held on the next succeeding business day not a
legal holiday.
(b) Business to be transacted at such meeting shall be the election
of directors to succeed those whose terms are expiring and such other
business as may be properly brought before the meeting.
(c) In the event that the annual meeting, by mistake or otherwise,
shall not be called and held as herein provided, a special meeting
may be called as provided for in Section 2 of this Article I in lieu
of and for the purposes of and with the same effect as the annual
meeting.
SECTION 2. Special Meetings
(a) A special meeting of the shareholders of the Corporation may be
called for any purpose or purposes at any time by the President of
the Corporation, by the Board of Directors or by the holders of not
less than 10% of the outstanding capital stock of the Corporation
entitled to vote at such meeting.
(b) At any time, upon the written direction of any person or persons
entitled to call a special meeting of the shareholders, it shall be
the duty of the Secretary to send notice of such meeting pursuant to
Section 4 of this Article I. It shall be the responsibility of the
person or persons directing the Secretary to send notice of any
special meeting of shareholders to deliver such direction and a
proposed form of notice to the Secretary not less than 15 days prior
to the proposed date of said meeting.
(c) Special meetings of the shareholders of the Corporation shall be
held at such place, within or without the State of Florida, on such
date, and at such time as shall be specified in the notice of such
special meeting.
SECTION 3. Adjournment
(a) When the annual meeting is convened, or when any special meeting
is convened, the presiding officer may adjourn it for such period of
time as may be reasonably necessary to reconvene the meeting at
another place and time.
(b) The presiding officer shall have the power to adjourn any meeting
of the Shareholders for any proper purpose, including, but not
limited to, lack of a quorum, securing a more adequate meeting place,
electing officials to count and tabulate votes, reviewing any
shareholder proposals or passing upon any challenge which may
properly come before the meetings.
(c) When a meeting is adjourned to another time or place, it shall
not be necessary to give any notice of the adjourned meeting if the
time and place to which the meeting is adjourned are announced at the
meeting at which the adjournment is taken, and any business may be
transacted at the adjourned meeting that might have been transacted
on the original date of the meeting. If, however, after the
adjournment the Board fixes a new record date for the adjourned
meeting, a notice of the adjourned meeting shall be given in
compliance with Section 4(a) of this Article I to each shareholder of
record on the new record date entitled to vote at such meeting.
SECTION 4. Notice of Meetings, Purpose of Meeting, Waiver
(a) Each shareholder of record entitled to vote at any meeting shall
be given in person, or by first class mail, postage prepaid, written
notice of such meeting which, in the case of a special meeting, shall
set forth the purpose(s) for which the meeting is called, not less
than 10 or more than 60 days before the date of such meeting. If
mailed, such notice is to be sent to the shareholder's address as it
appears on the stock transfer books of the Corporation, unless the
shareholder shall be requested of the Secretary in writing at least
15 days prior to the distribution of any required notice that any
notice intended for him or her be sent to some other address, in
which case the notice may be sent to the address so designated.
Notwithstanding any such request by a shareholder, notice sent to a
shareholder's address as it appears on the stock transfer books of
this Corporation as of the record date shall be deemed properly
given. Any notice of a meeting sent by United States mail shall be
deemed delivered when deposited with proper postage thereon with the
United States Postal Service or in any mail receptacle under its
control.
(b) A shareholder waives notice of any meeting by attendance, either
in person or by proxy, at such meeting or by waiving notice in
writing either before, during or after such meeting. Attendance at a
meeting for the express purpose of objecting that the meeting was not
lawfully called or convened, however, will not constitute a waiver of
notice by a shareholder who states at the beginning of the meeting,
his or her objection that the meeting is not lawfully called or
convened.
(c) A waiver of notice signed by all shareholders entitled to vote at
a meeting of shareholders may also be used for any other proper
purpose including, but not limited to, designating any place within
or without the State of Florida as the place for holding such a
meeting.
(d) Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of shareholders need be specified in any
written waiver of notice.
SECTION 5. Closing of Transfer Books, Record Date, Shareholders'
List
(a) In order to determine the holders of record of the capital stock
of the Corporation who are entitled to notice of meetings, to vote a
meeting or adjournment thereof, or to receive payment of any
dividend, or for any other purpose, the Board of Directors may fix a
date not more than 60 days prior to the date set for any of the
above-mentioned activities for such determination of shareholders.
(b) If the stock transfer books shall be closed for the purpose of
determining shareholders entitled to notice of or to vote at a
meeting of shareholders, such books shall be closed for at least 10
days immediately preceding such meeting.
(c) In lieu of closing the stock transfer books, the Board of
Directors may fix in advance a date as the date for any such
determination of shareholders, such date in any case to be not more
than 60 days prior to the date on which the particular action,
requiring such determination of shareholders, is to be taken.
(d) If the stock transfer books are not closed and no record date is
fixed for the determination of shareholders entitled to notice or to
vote at a meeting of shareholders, or to receive payment of a
dividend, the date on which notice of the meeting is mailed or the
date on which the resolution of the Board of Directors declaring such
dividend is adopted, as the case may be, shall be the record date for
such determination of shareholders.
(e) When a determination of shareholders entitled to vote at any
meeting of shareholders has been made as provided in this Section,
such determination shall apply to any adjournment thereof, unless the
Board of Directors fixes a new record date under this Section for the
adjourned meeting.
(f) The officer or agent having charge of the stock transfer books of
the Corporation shall make, as of a date at least 10 days before each
meeting of shareholders, a complete list of the shareholders entitled
to vote at such meeting or any adjournment thereof, with the address
of each shareholder and the number and class and series, if any, of
shares held by each shareholder. Such list shall be kept on file at
the registered office of the Corporation, at the principal place of
business of the Corporation or at the office of the transfer agent or
registrar of the Corporation for a period of 10 days prior to such
meeting and shall be available for inspection by any shareholder at
any time during usual business hours. Such list shall also be
produced and kept open at the time and place of any meeting of
shareholders and shall be subject to inspection by any shareholder at
any time during the meeting.
(g) The original stock transfer books shall be prima facie evidence
as to the shareholders entitled to examine such list or stock
transfer books or to vote any meeting of shareholders.
(h) If the requirements of Section 5(f) of this Article I have not
been substantially complied with, then, on the demand of any
shareholder in person or by proxy, the meeting shall be adjourned
until such requirements are complied with.
(i) If no demand pursuant to Section 5(h) of this Article I is made,
failure to comply with the requirements of this Section shall not
affect the validity of any action taken at such meeting.
(j) Section 5(g) of this Article I shall be operative only at such
time(s) as the Corporation shall have 6 or more shareholders.
SECTION 6. Quorum
At any meeting of the shareholders of the Corporation, the presence,
in person or by proxy, of shareholders owning a majority of the
issued and outstanding shares of the capital stock of the Corporation
entitled to vote thereat shall be necessary to constitute a quorum
for the transaction of any business. If a quorum is present, the
vote of a majority of the shares represented at such meeting and
entitled to vote on the subject matter shall be the act of the
shareholders. If there shall not be quorum at any meeting of the
shareholders of the Corporation, then the holders of a majority of
the shares of the capital stock of the Corporation who shall be
present at such meeting, in person or by proxy, may adjourn such
meeting from time to time until holders of all of the shares of the
capital stock shall attend. At any such adjourned meeting at which a
quorum shall be present, any business may be transacted which might
have been transacted at the meeting as originally scheduled.
SECTION 7. Presiding Officer, Order of Business
(a) Meetings of the shareholders shall be presided over by the
Chairman of the Board, or, if he or she is not present or there is no
Chairman of the Board, by the President or, if he or she is not
present, by the senior Vice President present or, if neither the
Chairman of the Board, the President, nor a Vice President is
present, the meeting shall be presided over by a chairman to be
chosen by a plurality of the shareholders entitled to vote at the
meeting who are present, in person or by proxy. The presiding
officer of any meeting of the shareholders may delegate his or her
duties and obligations as the presiding officer as he or she sees
fit.
(b) The Secretary of the Corporation, or, in his or her absence, an
Assistant Secretary shall act as Secretary of every meeting of
shareholders, but if neither the Secretary nor an Assistant Secretary
is present, the presiding officer of the meeting shall choose any
person present to act as secretary of the meeting.
(c) The order of business shall be as follows:
1. Call of meeting to order.
2. Proof of notice of meeting.
3. Reading of minutes of last previous shareholders' meeting or a
waiver thereof.
4. Reports of officers.
5. Reports of committees.
6. Election of directors.
7. Regular and miscellaneous business.
8. Special matters.
9. Adjournment.
(d) Notwithstanding the provisions of Section 7(c) of this Article I,
the order and topics of business to be transacted at any meeting
shall be determined by the presiding officer of the meeting in his or
her sole discretion. In no event shall any variation in the order of
business or additions and deletions from the order of business as
specified in Section 7(c) of this Article I invalidate any actions
properly taken at any meeting.
SECTION 8. Voting
(a) Unless otherwise provided for in the Articles of Incorporation,
each shareholder shall be entitled, at each meeting and upon each
proposal to be voted upon, to one vote for each share of voting stock
recorded in his name on the books of the Corporation on the record
date fixed as provided for in Section 5 of this Article I.
(b) The presiding officer at any meeting of the shareholders shall
have the power to determine the method and means of voting when any
matter is to be voted upon. The method and means of voting may
include, but shall not be limited to, vote by ballot, vote by hand or
vote by voice. No method of voting may be adopted, however, which
fails to take account of any shareholder`s right to vote by proxy as
provided for in Section 10 of this Article I. In no event may nay
method of voting be adopted which would prejudice the outcome of the
vote.
SECTION 9. Action Without Meeting
(a) Any action required to be taken at any annual or special meeting
of shareholders of the Corporation, or any action which may be taken
at any annual or special meeting of such shareholders, may be taken
without a meeting, without prior notice and without a vote, if a
consent in writing, setting forth the action so taken, shall be
signed by the holders of a majority of the Corporation's outstanding
stock.
(b) In the event that the action to which the shareholders consent is
such as would have required the filing of a certificate under the
Wyoming Business Corporation Act. is such action had been voted on by
shareholders at a meeting thereof, the certificate filed under such
other section shall state that written consent has been given in
accordance with the provisions of Section 9 of this Article I.
(c) If shareholder action is taken by written consent in lieu of
meeting signed by less than all of the Corporation's shareholders,
then all non participating shareholders shall be provided with
written notice of the action taken within 10 days after the date of
the written instrument taking such action.
(d) No action by written consent in lieu of meeting shall be valid if
it is in contravention of applicable proxy or informational rules
adopted pursuant to the Securities Exchange Act of 1934, as amended,
including, without limitation, the requirements of Section 14
thereof.
SECTION 10. Proxies
(a) Every shareholder entitled to vote at a meeting of shareholders
or to express consent or dissent without a meeting, or his or her
duly authorized attorney-in-fact, may authorize another person or
persons to act for him or her by proxy.
(b) Every proxy must be signed by the shareholder or his or her
attorney-in-fact. No proxy shall be valid after the expiration of 11
months from the date thereof unless otherwise provided in the proxy.
Every proxy shall be revocable at the pleasure of the shareholder
executing it, except as otherwise provided in this Section 10.
(c) The authority of the holder of a proxy to act shall not be
revoked by the incompetence or death of the shareholder who executed
the proxy unless, before the authority is exercised, written notice
of any adjudication of such incompetence or of such death is received
by the corporate officer responsible for maintaining the list of
shareholders.
(d) Except when other provisions shall have been made by written
agreement between the parties, the record holder of shares held as
pledges or otherwise as security or which belong to another, shall
issue to the pledgor or to such owner of such shares, upon demand
therefor and payment of necessary expenses thereof, a proxy to vote
or take other action thereon.
(e) A proxy which states that it is irrevocable is irrevocable when
it is held by any of the following or a nominee of any of the
following: (i) a pledgee; (ii) a person who has purchased or agreed
to purchase the shares: (iii) a creditor or creditors of the
Corporation who extend or continue to extend credit to the
Corporation in consideration of the proxy, if the proxy states that
it was given in consideration of such extension or continuation of
credit, the amount thereof, and the name of the person extending or
continuing credit; (iv) a person who has contracted to perform
services as an officer of the Corporation, if a proxy is required by
the contract of employment, if the proxy states that it was given in
consideration of such contract of employment and states the name of
the employee and the period of employment contracted for; and (v) a
person designated by or under an agreement as provided in Article XI
hereof.
(f) Notwithstanding a provision in a proxy stating that it is
irrevocable, the proxy becomes revocable after the pledge is
redeemed, the debt of the Corporation is paid, the period of
employment provided for in the contract of employment has terminated,
or the agreement under Article XI hereof has terminated and, in a
case provided for in Section 10(e) (iii) or Section 10(e) (iv) of
this Article I, becomes revocable three years after the date of the
proxy or at the end of the period, if any, specified therein,
whichever period is less, unless the period of irrevocability of the
proxy as provided in this Section 10. This Section 10(f) does not
affect the duration of a proxy under Section 10(b) of this Article I.
(g) A proxy may be revoked, notwithstanding a provision making it
irrevocable, by a purchaser of shares without knowledge of the
existence of the provisions unless the existence of the proxy and its
irrevocability is noted conspicuously on the face or back of the
certificate representing such shares.
(h) If a proxy for the same shares confers authority upon two or more
persons and does not otherwise provide, a majority of such persons
present at the meeting, or if only one is present then that one, may
exercise all the powers conferred by the proxy. if the proxy holders
present at the meeting are equally divided as to the right and manner
of voting in any particular case, the voting of such shares shall be
prorated.
(i) If a proxy expressly so provides, any proxy holder may appoint in
writing a substitute to act in his or her place.
(j) Notwithstanding anything in the Bylaws to the contrary, no proxy
shall be valid if it was obtained in violation of any applicable
requirements of Section 14 of the Securities Exchange Act of 1934, as
amended, or the Rules and Regulations promulgated thereunder.
SECTION 11. Voting of Shares by Shareholders
(a) Shares standing in the name of another corporation, domestic or
foreign, may be voted by the officer, agent, or proxy designated by
the bylaws of the corporate shareholder; or, in the absence of any
applicable bylaw, by such person as the board of directors of the
corporate shareholder may designate. Proof of such designation may
be made by presentation of a certified copy of the bylaws or other
instrument of the corporate shareholder. In the absence of any such
designation, or in case of conflicting designation by the corporate
shareholder, the chairman of the board, president, any vice
president, secretary and treasurer of the corporate shareholder, in
that order, shall be presumed to possess authority to vote such
shares.
(b) Shares held by an administrator, executor, guardian or
conservator may be voted by him or her, either in person or by proxy,
without a transfer of such shares into his or her name. Shares
standing in the name of a trustee may be voted as shares held by him
or her without a transfer of such shares into his name.
(c) Shares standing in the name of a receiver may be voted by such
receiver. Shares held by or under the control of a receiver but not
standing in the name of such receiver, may be voted by such receiver
without the transfer thereof into his name if authority to do so is
contained in an appropriate order of the court by which such receiver
was appointed.
(d) A shareholder whose shares are pledged shall be entitled to vote
such shares until the shares have been transferred into the name of
the pledgee.
(e) Shares of the capital stock of the Corporation belonging to the
Corporation or held by it in a fiduciary capacity shall not be voted,
directly or indirectly, at any meeting, and shall not be counted in
determining the total number of outstanding shares.
ARTICLE II
DIRECTORS
SECTION 1. Board of Directors, Exercise of Corporate Powers
(a) All corporate powers shall be exercised by or under the authority
of, and the business and affairs of the Corporation shall be managed
under the direction of, the Board of Directors except as may be
otherwise provided in the Articles of Incorporation or in
Shareholder's Agreement. If any such provision is made in the
Articles of Incorporation or in Shareholder's Agreement, the powers
and duties conferred or imposed upon the Board of Directors shall be
exercised or performed to such extent and by such person or persons
as shall be provided in the Articles of Incorporation or
Shareholders' Agreement.
(b) Directors need not be residents of this state or shareholders of
the Corporation unless the Articles of Incorporation so require.
(c) The Board of Directors shall have authority to fix the
compensation of directors unless otherwise provided in the Articles
of Incorporation.
(d) A director shall perform his or her duties as a director,
including his or her duties as a member of any committee of the Board
upon which he may serve, in good faith, in a manner he or she
reasonably believes to be in the best interests of the Corporation,
and with such care as an ordinarily prudent person in a like position
would use under similar circumstances.
(e) In performing his or her duties, a director shall be entitled to
rely on information, opinions, reports or statements, including
financial statements and other financial data, in each case prepared
or presented by: (i) one or more officers or employees of the
Corporation whom the director reasonably believes to be reliable and
competent in the matters presented; (ii) legal counsel, public
accountants or other persons as to matters which the director
reasonably believes to be within such persons' professional or expert
competence; or (iii) a committee of the Board upon which he or she
does not serve, duly designated in accordance with a provision of the
Articles of Incorporation or these By-Laws, as to matters within its
designated authority, which committee the director reasonably
believes to merit confidence.
(f) A director shall not be considered to be acting in good faith if
he or she has knowledge concerning the matter in question that would
cause such reliance described in Section 1(e) of this Article II to
be unwarranted.
(g) A person who performs his or her duties in compliance with
Section 1 of this Article II shall have no liability by reason of
being or having been a director of the Corporation.
(h) A director of the Corporation who is present at a meeting of the
Board of Directors at which action on any corporate matter is taken
shall be presumed to have assented to the action taken unless he or
she votes against such action or abstains from voting in respect
thereto because of an asserted conflict of interest.
SECTION 2. Number, Election, Classification of Directors,
Vacancies
(a) The Board of Directors of this Corporation shall consist of not
less than one director. The Board shall have authority, from time to
time, to increase the number of directors or to decrease it to not
less than one member, provided that no decrease in the number of
directors shall deprive a serving director of the right to serve
throughout the term of his or her election.
(b) Each person named in the Articles of Incorporation as a member of
the initial Board of Directors shall serve until his or her successor
shall have been elected and qualified or until his or her earlier
resignation, removal from office, or death.
(c) At the first annual meeting of shareholders and at each annual
meeting thereafter, the shareholders shall elect directors to hold
office until the next succeeding annual meeting, except in case of
the classification of director as permitted by the Wyoming Business Corporation Act. Each Director shall hold office for the term for
which he or she is elected and until his or her successor shall have
been elected and qualified or until his or her earlier resignation,
removal from office, or death.
(d) The shareholders, by amendment to these Bylaws, may provide that
the directors be divided into not more than four classes, as nearly
equal in number as possible, whose terms of office shall respectively
expire at different times, but no such term shall continue longer
than four years, and at least one fourth of the directors shall be
elected annually. If Directors are classified and the number of
directors is thereafter changed, any increase or decrease in
directorship shall be so apportioned among the classes as to make all
classes as nearly equal in number as possible.
(e) Any vacancy occurring in the Board of Directors, including any
vacancy created by reason of an increase in the number of directors,
may be filled only by the Board of Directors. A director elected to
fill a vacancy shall hold office only until the next election of
directors by the shareholders.
SECTION 3. Removal of Directors
At a meeting of shareholders called expressly for that purpose,
directors may be removed in the manner provided in this Section 3.
Any director or the entire Board of Directors may be removed, with or
without cause, by the vote of the holders of two-thirds of the shares
then entitled to vote at an election of directors.
SECTION 4. Director Quorum and Voting
(a) A majority of the directors fixed in the manner provided in these
Bylaws shall constitute a quorum for the transaction of business.
(b) A majority of the members of an Executive Committee or other
committee shall constitute a quorum for the transaction of business
at any meeting of such Executive Committee or other committee.
(c) The act of a majority of the directors present at a Board meeting
at which a quorum is present shall be the act of the Board of
Directors.
(d) The act of a majority of the members of an Executive Committee
present at an Executive Committee meeting at which a quorum is
present shall be the act of the Executive Committee.
(e) The act of a majority of the members of any other committee
present at a committee meeting at which a quorum is present shall be
the act of the committee.
(f) Directors may, if not contrary to applicable law, vote either in
person or by proxy, provided that the proxy holder must be either
another director, an officer or a shareholder of the Corporation;
however, any director who elects to vote by proxy more than three
times during any single fiscal year shall, unless otherwise
determined by the Board of Directors, be automatically removed as a
director.
SECTION 5. Director Conflicts of Interest
(a) No contract or other transaction between this Corporation and one
or more of its director or any other corporation, firm, association
or entity in which one or more of its directors are Directors or
officers or are financially interested shall be either void or
voidable because of such relationship or interest or because such
director or directors are present at the meeting of the Board of
Directors or a committee thereof which authorizes, approves or
ratifies such contract or transaction or because their votes are
counted for such purpose, if:
(i) The fact of such relationship or interest is disclosed or known
to the Board of Directors or committee which authorizes, approves or
ratifies the contract or transaction by a vote or consent sufficient
for the purpose without counting the votes or consents of such
interested directors; or
(ii) The fact of such relationship or interest is disclosed or known
to the shareholders entitled to vote and they authorize, approve or
ratify such contract or transaction by vote or written consent; or
(iii) The contract or transaction is fair and reasonable as to the
Corporation at the time it is authorized by the Board, a committee,
or the shareholders.
(b) Interested directors, whether or not voting, may be counted in
determining the presence of a quorum at a meeting of the Board of
Directors or a committee thereof which authorizes, approves or
ratifies such contract or transaction.
SECTION 6. Executive and Other Committees, Designation, Authority
(a) The Board of Directors, by resolution adopted by the full Board
of Directors, may designate from among its directors an Executive
Committee and one or more other committees each of which, to the
extent provided in such resolution or in the Articles of
Incorporation or these Bylaws, shall have and may exercise all the
authority of the Board of Directors, except that no such committee
shall have the authority to : (i) approve or recommend to
shareholders actions or proposals required by the Wyoming Business Corporation Act to be approved by shareholders; (ii) designate
candidates for the office of director for purposes of proxy
solicitation or otherwise; (iii) fill vacancies on the Board of
Directors or any committee thereof; (iv) amend these Bylaws; (v)
authorize or approve the reacquisition of shares unless pursuant to a
general formula or method specified by the Board of Directors; or
(vi) authorize or approve the issuance or sale of, or any contract to
issue or sell, shares or designate the terms of a series of a class
of shares, unless the Board of Directors, having acted regarding
general authorization for the issuance or sale of shares, or any
contract therefor, and, in the case of a series, the designation
thereof has specified a general formula or method by resolution or by
adoption of a stock option or other plan, authorized a committee to
fix the terms upon which such shares may be issued or sold,
including, without limitation, the price, the rate or manner of
payment of dividends, provisions for redemption, sinking fund,
conversion, and voting or preferential rights, and provisions for
other features of a class of shares, or a series of a class of
shares, with full power in such committee to adopt any final
resolution setting forth all the terms of a series for filing with
the Department of State under the Wyoming Business Corporation Act..
(b) The Board, by resolution adopted in accordance with Section 6(a)
of this Article II, may designate one or more directors as alternate
members of any such committee, who may act in the place and stead of
any absent member or members at any meeting of such committee.
(c) Neither the designation of any such committee, the delegation
thereto of authority, nor action by such committee pursuant to such
authority shall alone constitute compliance by a member of the Board
of Directors, not a member of the committee in question, with his
responsibility to act in good faith, in manner he reasonably believes
to be in the best interests of the Corporation, and with such care as
an ordinarily prudent person in a like position would use under
similar circumstances.
SECTION 7. Place, Time, Notice and Call of Directors' Meeting.
(a) Meetings of the Board of Directors, regular or special, may be
held either within or without the State of Florida.
(b) A regular meeting of the Board of Directors of the Corporation
shall be held for the election of officers of the Corporation and for
the transaction of such other business as may come before such
meeting as promptly as practicable after the annual meeting of the
shareholders of this Corporation without the necessity of notice
other than this Bylaw. Other regular meetings of the Board of
Directors of the Corporation may be held at such places as the Board
of Directors of the Corporation may from time to time resolve without
notice other than such resolution. Special meetings of the Board of
Directors may be held at any time upon call of the Chairman of the
Board of Directors or a majority of the Directors of the Corporation,
at such time and at such place as shall be specified in the call
thereof. Notice of any special meeting of the Board of Directors
must be given at least two days prior thereto, if by written notice
delivered personally; or at least five days prior thereto, if mailed;
or at least two days prior thereto, if by telegram; or at least two
days prior thereto, if by telephone. If such notice is given by
mail, such notice shall be deemed to have been delivered when
deposited with the United States Postal Service addressed to the
business address of such Director with postage thereon prepaid. If
notice be given by telegram, such notice shall be deemed delivered
when the telegram is delivered to the telegraph company. If notice
is given by telephone, such notice shall be deemed delivered when the
call is completed.
(c) Notice of a meeting of the Board of Directors need not be given
to any Director who signs a waiver of notice either before or after
the meeting. Attendance of a Director at a meeting shall constitute
a waiver of notice of such meeting and waiver of any and all
objections to the place of the meeting, the time of the meeting, or
the manner in which it has been called or convened, except when a
Director states, at the beginning of the meeting, any objection to
the transaction of business because the meeting is not lawfully
called or convened.
(d) Neither the business to be transacted at, nor the purpose of, any
regular of special meeting of the Board of Directors need be
specified in the notice or waiver of notice of such meeting.
(e) A majority of the directors present, whether or not a quorum
exists, may adjourn any meeting of the Board of Directors to another
time and place. Notice of any such adjourned meeting shall be given
to the Directors who were not present at the time of the adjournment
and, unless the time and place of the adjourned meeting are announced
at the time of the adjournment, to the other Directors.
(f) Members of the Board of Directors may participate in a meeting of
such Board by means of a conference telephone or similar
communications equipment by means of which all persons participating
in the meeting can hear each other at the same time. Participation
by such means shall constitute presence in person at a meeting.
SECTION 8. Action by Directors Without a Meeting
(a) Any action required by the Wyoming Business Corporation Act. to be
taken at a meeting of the Directors of the Corporation, or any action
which may be taken at a meeting of the Directors or a committee
thereof, may be taken without a meeting if a consent in writing,
setting forth the action so to be taken, signed by all of the
Directors, or all of the members of the committee, as the case may
be, and is filed in the minutes of the proceedings of the Board or of
the committee. Such consent shall have the same effect as a
unanimous vote.
(b) If not contrary to applicable law, directors may take action as
the Board of Directors or committees thereof through a written
consent to action signed by a number of directors sufficient to have
carried a vote of the Board of Directors or committee thereof with
all members present and voting; provided, that all directors not
joining in such written instrument shall be deemed for all purposes
to have cast dissenting votes, and that all directors not parties to
such instrument shall receive written notice of all action taken
through such instrument within three days after such instrument shall
have been subscribed by the requisite number of directors required
for such action.
SECTION 9. Compensation
The Directors and members of the Executive and any other committee of
the Board of Directors shall be entitled to such reasonable
compensation for their services and on such basis as shall be fixed
from time to time by resolution of the Board of Directors. The Board
of Directors and members of any committee of that Board of Directors
shall be entitled to reimbursement for any reasonable expenses
incurred in attending any Board or committee meeting. Any Director
receiving compensation under this Section shall not be prevented from
serving the Corporation in any other capacity and shall not be
prohibited from receiving reasonable compensation for such other
services.
SECTION 10. Resignation
Any Director of the Corporation may resign at any time by providing
the Board of Directors with written notice indicating the Director's
intention to resign and the effective date thereof.
ARTICLE III
OFFICERS
SECTION 1. Election, Number, Terms of Office
(a) The officers of the Corporation shall consist of a Chairman of
the Board, a Chief Executive officer, a President, a Chief Operating
Officer, a Chief Financial Officer, one or more Vice-Presidents, a
Secretary and a Treasurer, each of whom shall be elected by the Board
of Directors at such time and in such manner as may be prescribed by
these Bylaws. Such other officers and assistance officers and agents
as may be deemed necessary may be elected or appointed by the Board
of Directors. The officers of the Corporation shall be hereinafter
collectively referred to as the "Officers."
(b) All officers and agents, as between themselves and the
Corporation, shall have such authority and perform such duties in the
management of the Corporation as are provided in these Bylaws, or as
may be determined by resolution of the Board of Directors not
inconsistent with these Bylaws.
(c) Any two or more offices may be held by the same person, except
for the offices of President and Secretary.
(d) A failure to elect a Chairman of the Board, Chief Executive
Officer, President, Chief Operating Officer, Chief Financial Officer,
a Vice President, a Secretary or a Treasurer shall not affect the
existence of the Corporation.
SECTION 2. Removal
An officer of the Corporation shall hold office until the election
and qualification of his successor; however, any Officer of the
Corporation may be removed from office by the Board of Directors
whenever in its judgment the best interests of the Corporation will
be served thereby. Such removal shall be without prejudice to the
contract rights, if any, of the person so removed. Election or
appointment of an officer shall not of itself create any contract
right to employment or compensation.
SECTION 3. Vacancies
Any vacancy in any office from any cause may be filled for the
unexpired portion of the term of such office by the Board of
Directors.
SECTION 4. Powers and duties
(a) The Chairman of the Board of Directors shall preside over
meetings of the Board of Directors and the Shareholders. Unless a
separate Chief Executive Officer is elected, the Chairman shall
exercise the powers hereafter granted to that office. Unless a
Chairman of the Board is specifically elected, the President shall be
deemed to be the Chairman of the Board.
(b) The Chief Executive Officer shall be the principal officer of the
Corporation to whom all other officers shall be subordinate. In the
event no Chief Executive Officer is separately elected, such office
shall be assumed by the Chairman of the Board, and if no such office
has been filled, by the President. Except where by law the signature
of the President is required or unless the Board of Directors shall
rule otherwise, the Chief Executive Officer shall possess the same
power as the President to sign all certificates, contracts and other
instruments of the Corporation which may be authorized by the Board
of Directors.
(c) The Chief Operating Officer of the Corporation shall be
responsible for management of the day to day affairs of the
Corporation, subject to compliance with the directions of the Board
of Directors and of the Chief Executive Officer. He shall be
responsible for the general day-to-day supervision of the business
and affairs of the Corporation. He shall sign or countersign all
certificates, contracts or other instruments of the Corporation as
authorized by the Board of Directors. He may, but need not, be a
member of the Board of Directors.
(d) Unless otherwise provided by specific resolution of the Board of
Directors, the President shall be the Chief Operating Officer of the
Corporation. In the absence of a separately elected or available
Chief Executive Officer or Chairman of the Board, the President shall
be the Chief Executive Officer of the Corporation and shall preside
at all meetings of the shareholders and the Board of Directors. He
shall make reports to the Board of Directors. The Board of Directors
will at all times retain the power to expressly delegate the duties
of the President to any other Officer of the Corporation.
(e) The Chief Financial Officer shall be responsible for coordinating
all financial aspects of the Corporation's operations, including
strategic financial planning, supervision of the Corporation's
Treasurer, Comptroller and outside auditors. In the event an Audit
Committee of the Board of Directors is designated and serving, he
shall be responsible for keeping such committee fully and timely
informed of all matters under its jurisdiction. In addition, the
Chief Financial Officer shall be responsible for overseeing
preparation and filing of all reports of the Corporation's activities
required to be filed, either periodically or on a special basis with
the United States Internal revenue Service and Securities and
Exchange Commission and other federal and state governmental
agencies.
(f) The Vice President(s), if any, in the order designated by the
Board of Directors, shall exercise the functions of the President in
the event of the absence, disability, death, or refusal to act of the
President. During the time that any Vice President is properly
exercising the functions of the President, such Vice President shall
have all the powers of and be subject to all restrictions upon the
President. Each Vice President shall have such other duties as are
assigned to him from time to time by the Board of Directors or by the
President of the Corporation.
(g) The Secretary of the Corporation shall keep the minutes of the
meetings of the shareholders of the Corporation, and, unless provided
otherwise by the Chairman at any meeting of the Board of Directors,
the Secretary shall keep the minutes of the meetings of the Board of
Directors of the Corporation. The Secretary shall be the custodian
of the minute books of the Corporation and such other books and
records of the Corporation as the Board of Directors of the
Corporation may direct. The Secretary of the Corporation shall have
the general responsibility for maintaining the stock transfer books
of the Corporation, or of supervising the maintenance of the stock
transfer books of the Corporation by the transfer agent, if any, of
the Corporation. The Secretary shall be the custodian of the
corporate seal of the Corporation and shall affix the corporate seal
of the Corporation on contracts and other instruments as the Board of
Directors may direct. The Secretary shall perform such other duties
as are assigned to him from time by the Board of Directors or the
President of the Corporation.
(h) The Treasurer of the Corporation shall be directly subordinate to
the Chief Financial Officer. In the absence of a Chief Financial
Officer, such office shall be filled by the Treasurer. The Treasurer
shall have custody of all funds and securities owned by the
Corporation. The Treasurer shall cause to be entered regularly in
the proper books of account of the Corporation full and accurate
accounts of the receipts and disbursements of the Corporation. The
Treasurer of the Corporation shall render a statement of the cash,
financial and other accounts of the Corporation whenever he is
directed to render such a statement by the Board of Directors or by
the President of the Corporation. The Treasurer shall at all
reasonable times make available the Corporation's books and financial
accounts to any Director of the Corporation during normal business
hours. The Treasurer shall perform all other acts incident to the
Office of Treasurer of the Corporation, and he shall have such other
duties as are assigned to him from time to time by the Board of
Directors or the President of the Corporation.
(i) Other subordinate or assistant officers appointed by the Board of
Directors or by the President, if such authority is delegated to him
by the Board of Directors, shall exercise such powers and perform
such duties as may be delegated to them by the Board of Directors,
the Chief Executive Officer or by the President, as the case may be.
(j) In case of the absence or disability of any Officer of the
Corporation and of any person authorized to act in his place during
such period of absence or disability, the Board of Directors may from
time to time delegate the powers and duties of such Officer or any
Director or any other person whom it may select.
SECTION 5. Salaries
The salaries of all Officers of the Corporation shall, except as
otherwise determined or required by an agreement entered into among
all the shareholders of the Corporation, be fixed by the Board of
Directors. No Officer shall be ineligible to receive such salary by
reason of the fact that he is also a Director of the Corporation and
receiving compensation therefor.
ARTICLE IV
LOANS TO EMPLOYEES AND OFFICERS,
GUARANTEE OF OBLIGATIONS OF EMPLOYEES AND OFFICERS
This Corporation may lend money to, guarantee any obligation of, or
otherwise assist any Officer or other employee of the Corporation or
of a subsidiary, including any Officer or employee who is a Director
of the Corporation or of a subsidiary, whenever, in the judgment of
the Directors, such loan, guarantee or assistance may reasonably be
expected to benefit the Corporation. The loan, guarantee or other
assistance may be with or without interest, and may be unsecured, or
secured in such manner as the Board of Directors shall approve
including, without limitation, a pledge of shares of stock of the
Corporation. Nothing in this Articles shall be deemed to deny, limit
or restrict the powers of guarantee or warranty of this Corporation
at common law or under any statute.
ARTICLE V
STOCK CERTIFICATES, VOTING TRUSTS, TRANSFERS
SECTION 1. Certificates Representing Shares
(a) Every holder of shares of this Corporation shall be entitled to
one or more certificates, representing all shares to which he is
entitled and such certificates shall be signed by the Chairman, Chief
Executive Officer, the President or a Vice President and the
Secretary or an Assistant Secretary of the Corporation and may be
sealed with the seal of the Corporation or a facsimile thereof. The
signatures of the Chairman, the Chief Executive Officer, the
President or Vice President and the Secretary or Assistant Secretary
may be facsimiles if the certificate is manually signed on behalf of
a transfer agent or a registrar, other than the Corporation itself or
an employee of the Corporation. In case any Officer who signed or
whose facsimile signature has been placed upon such certificate shall
have ceased to be such Officer before such certificate is issued, it
may be issued by the Corporation with the same effect as if it were
executed by the appropriate Officer at the date of its issuance.
(b) Every certificate representing shares issued by this Corporation
shall, if shares are divided into one or more classes or series with
differing rights, state that the Corporation will furnish to any
shareholder upon request and without charge a full statement of: (i)
the designations, preferences, limitations, and relative rights of
the shares of each class or series authorized to be issued, and (ii)
the variations in the relative rights and preferences between the
shares of each such series, if the Corporation is authorized to issue
any preferred or special class in series and so far as the same have
been fixed and determined, and the authority of the Board of
Directors to fix and determine, the relative rights and preferences
of subsequent series.
(c) Every certificate representing shares which are restricted as to
sale, disposition or other transfer (including restrictions based on
federal or state securities and other laws) shall state that such
shares are restricted as to transfer and shall set forth or fairly
summarize upon the certificate, or shall state that the Corporation
will furnish to any shareholder upon request and without charge a
full statement of, such restrictions.
(d) Each certificate representing shares shall state upon the face
thereof: (i) the name of the Corporation; (ii) that the Corporation
is organized under the laws of the State of Nevada; (iii) the name
of the person or persons to whom issued; (iv) the number and class
of shares, and the designation of the series, if any, which such
certificate represents; and (v) the par value of each share
represented by such certificate, or a statement that the shares are
without par value.
(e) No certificate shall be issued for any shares until they are
fully paid for.
SECTION 2. Transfer Books
The Corporation shall keep at its registered office or principal
place of business or in the office of its transfer agent or
registrar, a book (or books where more than one kind, class, or
series of stock is outstanding) to be known as the Stock Book,
containing the names, alphabetically arranged, addresses and Social
Security numbers of every shareholder and the number of shares each
kind, class or series of stock held of record. Where the Stock Book
is kept in the office of the transfer agent, the Corporation shall
keep at its office in the State of Florida copies of the stock lists
prepared from said Stock Book and sent to it from time to time by
said transfer agent. The Stock Book or stock lists shall show the
current status of the ownership of shares of the Corporation provided
that, if the transfer agent of the Corporation be located elsewhere,
a reasonable time shall be allowed for transit or mail.
SECTION 3. Transfer of Shares
(a) The name(s) and address(es) of the person(s) to whom shares of
stock of this Corporation are issued, shall be entered on the Stock
Transfer Books of the Corporation, with the number of shares and date
of issue.
(b) Transfer of shares of the Corporation shall be made on the Stock
Transfer Books of the Corporation by the Secretary or the transfer
agent, subject to compliance with any restrictions specified on such
certificate, only when the holder of record thereof or the legal
representative of such holder of record or the attorney-in-fact of
such holder of record, authorized by power of attorney duly executed
and filed with the Secretary or transfer agent of the Corporation,
shall surrender the Certificate representing such shares for
cancellation. Lost, destroyed or stolen Stock Certificates shall be
replaced pursuant to Section 5 of this Article V.
(c) The person or persons in whose names shares stand on the books of
the Corporation shall be deemed by the Corporation to be the owner of
such shares for all purposes, except as otherwise provided pursuant
to Sections 10 and 11 of Article I, or Section 4 of Article V.
(d) Shares of the Corporation capital stock shall be freely
transferable without the required Board of Directors' consent, unless
such consent requirement has been imposed pursuant to a binding
written contract subscribed to by the holder or his or her
predecessor in interest.
SECTION 4. Voting Trusts
(a) Any number of shareholders of the Corporation may create a voting
trust for the purpose of conferring upon a trustee or trustees the
right to vote or otherwise represent their shares, for a period not
to exceed ten years, by: (i) entering into a written voting trust
agreement specifying the terms and conditions of the voting trust;
(ii) depositing a counterpart of the agreement with the Corporation
at its registered office; and (iii) transferring their shares to such
trustee or trustees for the purposes of this Agreement. Prior to the
recording of the agreement, the shareholder concerned shall render
the stock certificate(s) described therein to the Corporate Secretary
who shall note on each certificate:
"This Certificate is subject to the provisions of a voting trust
agreement dated .................., recorded in Minute Book
........................., of the Corporation.
..........................."
Secretary
(b) Upon the transfer of such shares, voting trust certificates shall
be issued by the trustee or trustees to the shareholders who transfer
their shares in trust. Such trustee or trustees shall keep a record
of the holders of voting trust certificates evidencing a beneficial
interest in the voting trust, giving the names and addresses of all
such holders and the number and class or the shares in respect of
which the voting trust certificates held by each are issued, and
shall deposit a copy of such record with the Corporation at its
registered office.
(c) The counterpart of the voting trust agreement and the copy of
such record so deposited with the Corporation shall be subject to the
same right of examination by a shareholder of the Corporation, in
person or by agent or attorney, as are the books and records of the
Corporation, and such counterpart and such copy of such record shall
be subject to examination by any holder of record of voting trust
certificates either in person or by agent or attorney, at any
reasonable time for any proper purpose.
(d) At any time before the expiration of a voting trust agreement as
originally fixed or as extended one or more times under this Section
4(d), one or more holders of voting trust certificates may, by
agreement in writing, extend the duration of such voting trust
agreement, nominating the same or substitute trustees, for an
additional period not exceeding 10 years. Such extension agreement
shall not affect the rights or obligations or persons not parties to
the agreement, and such persons shall be entitled to remove their
shares from the trust and promptly to have their stock certificates
reissued upon the expiration of the original term of the voting trust
agreement. The extension agreement shall in every respect comply
with and be subject to all the provisions of this Section 4,
applicable to the original voting trust agreement except that the 10
year maximum period of duration shall commence on the date of
adoption of the extension agreement.
(e) The trustees under the terms of the agreements entered into under
the provisions of this Section 4, shall not acquire the legal title
to the shares but shall be vested only with the legal right and title
to the voting power which is incident to the ownership of the shares.
(f) Notwithstanding generally applicable prohibitions against a
corporation's voting of treasury stock, if the Corporation is the
trustee under a voting trust, it shall have full authority to vote
such shares in accordance with the terms of the voting trust
agreement, even if such agreement vests absolute and unfettered
voting discretion in the trustee and notwithstanding that the voting
trust was created at the prompting or direction of the Corporation,
its officers or directors.
SECTION 5. Lost, Destroyed, or Stolen Certificates
No Certificate representing shares of stock in the Corporation shall
be issued in place of any Certificate alleged to have been lost,
destroyed, or stolen except on production of evidence, satisfactory
to the Board of Directors, of such loss, destruction or theft, and,
if the Board of Directors so requires, upon the furnishing of an
indemnity bond in such amount (but not to exceed twice the fair
market value of the shares represented by the Certificate) and with
such terms and with such surety as the Board of Directors may, in its
discretion, require.
ARTICLE VI
BOOKS AND RECORDS
(a) The Corporation shall keep correct and complete books and records
of account and shall keep minutes of the proceedings of its
shareholders, Board of Directors and committees of Directors.
(b) Any books, records and minutes may be in written form or in any
other form capable of being converted into written form within a
reasonable time.
(c) Any person who shall have been a holder of record of shares, or
the holder of record of voting trust certificates for, at least five
percent of the outstanding shares of any class or series of the
Corporation, upon written demand stating the purpose thereof, shall;
subject to the qualifications contained in subsection (d) hereof,
have the right to examine, in person or by agent or attorney, at any
reasonable time or times, for any purpose, its relevant books and
records of account, minutes and records of shareholders and to make
extracts therefrom.
(d) No shareholder who within two years has sold or offered for sale
any list of shareholders or of holders of voting trust certificates
for shares of this Corporation or any other corporation; has aided or
abetted any person in procuring any list of shareholders or of
holders of voting trust certificates for any such purpose; or has
improperly used any information secured through any prior examination
of the books and records of account, minutes, or record of
shareholders or of holders of voting trust certificates for shares of
the Corporation of any other corporation; shall be entitled to
examine the documents and records of the Corporation as provided in
Section (c) of this Article VI. No shareholder who does not act in
good faith or for a proper purpose in making his demand shall be
entitled to examine the documents and records of the Corporation as
provided in Section (c) of this Article VI.
(e) Unless modified by resolution of the Shareholders, this
Corporation shall prepare not later than four months after the close
of each fiscal year:
(i) A balance sheet showing in reasonable detail the financial
conditions of the Corporation as of the date of the close of its
fiscal year.
(ii) A Profit and Loss statement showing the results of its operation
during its fiscal year.
(f) Upon the written request of any shareholder or holder of voting
trust certificates for shares of the Corporation, the Corporation
shall mail to such shareholder or holder of voting trust certificates
a copy of its most recent balance sheet and profit and loss
statement.
(g) Such balance sheets and profit and loss statements shall be filed
and kept for at least five years in the registered office of the
Corporation in the State of Florida and shall be subject to
inspection during business hours by any shareholder or holder of
voting trust certificates, in person or by agent.
ARTICLE VII
DIVIDENDS
The Board of Directors of the Corporation may, from time to time,
declare, and the Corporation may pay dividends on its own shares,
except when the Corporation is insolvent or when the payment thereof
would render the Corporation insolvent, subject to the following
provisions:
(a) Dividends in cash or property may be declared and paid, except as
otherwise provided in this Article VII, only out of the unreserved
and unrestricted earned surplus of the Corporation or out of capital
surplus, however arising, but each dividend paid out of capital
surplus shall be identified as a distribution of capital surplus, and
the amount per share paid from such capital surplus shall be
disclosed to the shareholders receiving the same concurrently with
the distribution.
(b) If the Corporation shall engage in the business of exploiting
natural resources or other wasting assets and if the Articles of
Incorporation so provide, dividends may be declared and paid in cash
out of depletion or similar reserves, but each such dividend shall be
identified as distribution of such reserves and the amount per share
paid from such reserves shall be disclosed to the shareholders
receiving the same concurrently with the distribution thereof.
(c) Dividends may be declared and paid in the Corporation's treasury
shares.
(d) Dividends may be declared and paid in the Corporation's
authorized but unissued shares, out of any unreserved and
unrestricted surplus of the Corporation, upon the following
conditions:
(i) If a dividend is payable in the Corporations' own shares having a
par value, such shares shall be issued at not less than the par value
thereof and there shall be transferred to stated capital at the time
such dividend is paid an amount of surplus equal to the aggregate par
value of the shares to be issued as a dividend.
(ii) If a dividend is payable in the Corporations' own shares without
par value, such shares shall be issued at a stated value fixed by the
Board of Directors by resolution adopted at the time such dividend is
declared, and there shall be transferred to stated capital at the
time such dividend is paid an amount of surplus equal to the
aggregate stated value so fixed and the amount per share so
transferred to stated capital shall be disclosed to the shareholders
receiving such dividend concurrently with the payment thereof.
(e) No dividend payable in shares of any class shall be paid to the
holders of shares of any other class unless the Articles of
Incorporation so provide or such payment is authorized by the
affirmative vote or the written consent of the holders of at least a
majority of the outstanding shares of the class which the payment is
to be made.
(f) A split or division of the issued shares of any class into a
greater number of shares of the same class without increasing the
stated capital of the Corporation shall not be construed to be a
stock dividend within the meaning of this Article VII.
ARTICLE VIII
SEAL
The Board of Directors shall adopt a Corporate Seal which shall be
circular in form and shall have inscribed thereon the name of the
Corporation, the state of incorporation and the year of
incorporation.
ARTICLE IX
INDEMNIFICATION
This Corporation may, in its discretion, indemnify any director,
officer, employee, or agent in the following circumstances and in the
following manner:
(a) The Corporation may indemnify any person who was or is a part, or
is threatened to be made a party to any threatened, pending, or
completed action, suit, or proceeding, whether civil, criminal,
administrative, or investigative (other than an action by, or in the
right of, the Corporation) by reason of the fact that he is or was a
director, officer, employee, or agent of the Corporation, or is or
was serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture,
trust, or other enterprise, against expenses (including attorneys'
fees at all trial and appellate levels), judgments, fines and amounts
paid in settlement actually and reasonably incurred by him in
connection with such action, suit, or proceeding, including any
appeal thereof, if he acted in good faith and in a manner he
reasonably believed to be in, or not opposed to, the best interests
of the Corporation and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was
unlawful. The termination of any action, suit, or proceeding by
judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a
presumption that the person did not act in good faith and in a manner
which he reasonable believed to be in, or not opposed to, the best
interests of the Corporation or, with respect to any criminal action
or proceeding, had reasonable cause to believe that his conduct was
unlawful.
(b) The Corporation may indemnify any person who was or is a party,
or is threatened to be made a party to any threatened, pending, or
completed action or suit by or in the right of the Corporation to
procure a judgment in its favor by reason of the fact that he is or
was a director, officer, employee, or agent of the Corporation or is
or was serving at the request of the Corporation as a director,
officer, employee, or agent of the Corporation as a director,
officer, employee, or agent of another corporation, partnership,
joint venture, trust, or other enterprise against expenses (including
attorneys' fees at all trial and appellate levels), actually and
reasonable incurred by him in connection with the defense of
settlement of such action or suit, including any appeal thereof, if
he acted in good faith and in a manner he reasonably believed to be
in, or not opposed to, the best interest of the Corporation, except
that no indemnification shall be made in respect of any claim, issue,
or matter as to which such person shall have been adjudged to be
liable for negligence or misconduct in the performance of his duty to
the Corporation unless, and only to the extent that, the court in
which such action or suit was brought shall determine upon
application that, despite the adjudication of liability but in view
of all circumstances of the case, such person is rarely and
reasonably entitled to indemnity for such expenses which such court
shall deem proper.
(c) To the extent that a Director, Officer, employee, or agent of the
Corporation has been successful on the merits or otherwise in defense
of any action, suit, or proceeding referred to in Sections (a) or (b)
of this Article IX, or in defense of any claim, issue, or matter
therein, shall be indemnified against expenses (including attorneys'
fees at trial and appellate levels) actually and reasonably incurred
by him in connection therewith.
(d) Any indemnification under Sections (a) or (b) of this Article IX,
unless pursuant to a determination by a court, shall be made by the
Corporation only as authorized in the specific case upon a
determination that indemnification of the director, officer,
employee, or agent is proper in the circumstances because he has met
the applicable standard of conduct set forth in Sections (a) or (b)
or this Article IX. Such determination shall initially be made by
the Board of Directors by a majority vote of a quorum consisting of
Directors who were not parties to such action, suit, or proceeding.
If the Board of Directors shall, for any reason, decline to make such
a determination, then such determination shall be made by the
shareholders by a majority vote of a quorum consisting of
shareholders who were not parties to such action, suit or proceeding;
provided, however, that a determination made by the Board of
Directors pursuant to this Section may be appealed to the
shareholders by the party seeking indemnification or any party
entitled to call a special meeting of the shareholders pursuant to
Section 2 of Article I and, in such case, the determination made by
the majority vote of a quorum consisting of shareholders who were not
parties to such action, suit, or proceeding shall prevail over a
contrary determination of the Board of Directors pursuant to this
Section.
(e) Expenses (including attorneys' fees at all trial and appellate
levels) incurred in defending a civil or criminal action, suit or
proceeding may be paid by the Corporation in advance of the final
disposition of such action, suit or proceeding upon a preliminary
determination following one of the procedures set forth in this
Article IX, that a Director, Officer, employee or agent met the
applicable standard of conduct set forth in this Article IX, and upon
receipt of an undertaking by or on behalf of the director, officer,
employee or agent to repay such amount, unless it shall ultimately be
determined that he is entitled to be indemnified by the Corporation
as authorized in this section.
(f) The Corporation may make any other or further indemnification,
except an indemnification against gross negligence or willful
misconduct, under any agreement, vote of shareholders or
disinterested Directors or otherwise, both as to action in the
indemnified party's official capacity and as to action in another
capacity while holding such office.
(g) Indemnification as provided in this Article IX may continue as to
a person who has ceased to be a director, officer, employee or agent
and may inure to the benefit of the heirs, executors and
administrators of such a person upon a proper determination initially
made by the Board of Directors by a majority vote of a quorum
consisting of Directors who were not parties to such action, suit, or
proceeding. If the Board of Directors shall, for any reason, decline
to make such a determination, then such determination may be made by
the shareholders by a majority vote of a quorum consisting of
shareholders who were not parties to such action, suit or proceeding;
provided, however, that a determination made by the Board of
Directors pursuant to this Section may be appealed to the
shareholders by the party seeking indemnification or his
representative or by any party entitled to call a special meeting of
the shareholders pursuant to Section 2 or Article I and in such case,
the determination made by the majority vote of quorum consisting of
shareholders who were not parties to such action, suit, or proceeding
shall prevail over a contrary determination of the Board of Directors
pursuant to this Section (g).
(h) The Corporation may purchase and maintain insurance on behalf of
any person who is or was a director, officer, employee or agent of
the Corporation, or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise,
against any liability asserted against him and incurred by him in any
such capacity or arising out of his status as such, whether or not
the Corporation would have the power to indemnify him against such
liability under the provisions of this Article IX.
(i) If any expenses or other amounts are paid by way of
indemnification, otherwise than by court order or action by the
shareholders or by an insurance carrier pursuant to insurance
maintained by the Corporation, the Corporation shall, not later than
the time of delivery to shareholders or written notice of the next
annual meeting of shareholders unless such meeting is held within
three months from the date of such payment, and, in any event, within
15 months from the date of such payment, deliver either personally or
by mail to each shareholder of record at the time entitled to vote
for the election of Directors a statement specifying the persons
paid, the amount paid, and the nature and status at the time of such
payment of the litigation of threatened litigation.
(j) This Article IX shall be interpreted to permit indemnification to
the fullest extent permitted by law. If any part of this Article
shall be found to be invalid or ineffective in any action, suit of
proceeding, the validity and effect of the remaining part thereof
shall not be affected. The provisions of this Article IX shall be
applicable to all actions, claims, suits, or proceedings made or
commenced after the adoption hereof, whether arising from acts or
omissions to act occurring before or after its adoption.
ARTICLE X
AMENDMENT OF BYLAWS
The Board of Directors shall have the power to amend, alter, or
repeal these Bylaws, and to adopt new Bylaws.
ARTICLE XI
FISCAL YEAR
The Fiscal Year of this Corporation shall be determined by the Board
of Directors.
ARTICLE XII
MEDICAL REIMBURSEMENT
SECTION 1. Benefits
The Corporation may, subject to approval of the Board of Directors
reimburse all employees for expenses incurred by themselves and their
dependents, as defined in Section 152 of the Internal Revenue Code of
1954, as amended (the "IRC"), for medical care, as defined
in IRC Section 213(e) or any successor section thereto, subject to
the conditions and limitations hereinafter set forth.
It is the intention of the Corporation that the benefits payable to
employees hereunder will be excluded from their gross income pursuant
IRC Section 105 or any successor section thereto.
SECTION 2. Employees Defined
The term "employees" as used in this medical expense plan
is hereby defined to include all individuals employed by the
corporation except the following:
(a) Employees who have not completed three months of service as is
provided in IRC Section 105(h)(3) (b)(i), or any successor section
thereto;
(b) Employees who have not attained the age of 25 years;
(c) Employees who are part-time or seasonal as is defined in IRC
Section 105(h)(3)(B)(iii) or any successor section thereto;
(d) Employees who are included in a unit of employees covered by an
agreement between employee representatives and one or more employers
found to be a collective bargaining agreement; where accident and
health benefits were the subject of good faith bargaining between
such employee representatives and such employer(s) as is defined in
IRC Section 105(h)(3)(B)(iv) or any successor section thereto;
(e) Employees who are nonresident aliens and who receive no earned
income from the employer which constitutes income from sources within
the United States as is further defined in IRC Section
105(h)(5)(B)(v) or any successor section thereto.
SECTION 3. Limitations
(a) The Corporation will reimburse any employee no more than
$5,000.00 in any fiscal year for medical care expenses;
(b) Reimbursement or payment provided under this plan will be made by
the Corporation only in the event and to the extent that such
reimbursement or payment is not provided under any insurance
policy(ies), whether owned by the Corporation or the employee, or
under any other health and accident or wage continuation plan;
(c) In the event that there is such an insurance policy or plan in
effect providing for reimbursement in whole or in part, then to the
extent of the coverage under such policy or plan, the Corporation
will be relieved of any and all liability hereunder.
SECTION 4. Submission of Proof
Any employee applying for reimbursement under this plan will submit
to the Corporation, at least quarterly, all bills for medical care,
including premium notices for accident or health insurance, for
verification by the Corporation prior to payment. Failure to comply
herewith, may at the discretion of the Board of Directors, terminate
such employee's right to said reimbursement.
SECTION 5. Discontinuation
This plan will be subject to termination at any time by vote of the
Board of Directors; provided, however, that medical care expenses
incurred prior to such termination will be reimbursed or paid in
accordance with the terms of this plan.
SECTION 6. Determination
The Chief Executive Officer will determine all questions arising from
the administration and interpretation of the Plan except where
reimbursement is claimed by the President. In such case
determination will be made by the Board of Directors.
* * *
The Undersigned, being the duly elected and acting secretary of the
Corporation, hereby certifies that the foregoing constitute the
validly adopted and true Bylaws of the Corporation, as of the date
set forth below.
Dated: March 3,
2010 /s/
Hamon Fyton
Secretary
(Corporate Seal)
EX10.1
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