I like the amendment which states the relationship changes between MCIG and Vapolution.
Vapolution members are concentrating on R&D.
MCIG will get aquire all Vapolution assets and concepts.
Vapolution will be acquired in 1 year rather than 5.
This acquisition is moving faster and once that agreement is finalized on Jan 2015, this will be part of this years financials instead of 5 years out. IMHO it seems there is a level of trust between the parties to want to move up the date. Maybe Vapolution owners/developers will back out, but how likely would that be?
As Stated in the 10~Q:
On May 23, 2014, the parties to the agreement agreed to amend the original Stock Purchase Agreement. Per the amended Stock Purchase Agreement executed as of May 23, 2014, a clarification was made to the agreement that more appropriately expresses the spirit of the transaction as agreed upon by management of mCig and the previous owners of Vapolution, Inc. As a result, one of the changes in the agreement is the disclosure that all of Vapolution’s assets were in-fact purchased by mCig as part of this agreement.
The following is a summary of the changes to the agreement:
1. In the amended agreement, former Vapolution, Inc. shareholders have autonomous control over the day-to-day operations of the Company (subsequently revised to permit day to day oversight but have mCig and the Vapolution retain the ultimate control over the business)while the Board of Directors of mCig, Inc. will have ultimate control over the business decisions within Vapolution, Inc. This differs from the original agreement whereby Vapolution, Inc. former shareholders had the ability to veto any decision made by mCig, Inc.
2. The Amended Agreement states that as part of the acquisition, all tangible and intangible assets of Vapolution, Inc. are included as part of the acquisition. This differs from the original agreement whereby the assets of Vapolution, Inc. were not acquired by mCig, Inc.
3. In the amended agreement, former Vapolution, Inc. shareholders have just one (1) year to rescind the agreement and return to full ownership of the Company as opposed to five (5) in the original agreement.
