Hi Cash,
Yes, just now saw it. I'd say that's significant. First paragraph seems to state it all. Still trying to get the impact.
Item 2.01 Completion of Acquisition or Disposition of Assets.
On April 2, 2015, Santo Mining Corp. (the “Company”) entered into certain “Plan of Exchange” Agreement (the “Agreement’) with Cathay
Cigars of Asia Corporation, a Florida corporation (“Cathay”). Pursuant to the terms of the Agreement, the Company agreed to acquire 100% of
the capital stock of Cathay in exchange for the issuance of 300,000 shares of Series A Preferred Stock of the Company “Transaction”),
effectively giving Cathay majority voting power in the Company (the “Transaction”). The Transaction is conditioned upon, among others, 1)
Company’s issuance of 300,000 shares of Series A Preferred Stock within 30 days of the execution date of the Agreement; 2) elimination of
any known or potential liabilities of the Company not covered by Cathay; 3) Mr. Alan French and Mr. Mario Mendez’s resignation from the
board of the directors (the “Board”) and as officers of the Company; 4) delivery of Company’s corporate documents to Cathay; 5) Company’s
note-holders’ release of any and all penalties in connection to the reorganization of the Company following the Transaction.
Pursuant to the Agreement and subsequent to the closing of the Transaction, Cathay agreed to 1) pay off Company’s liabilities up to
$159,347.23, 2) assist the Company to re-obtain its trading status on Over-the-Counter Bulletin Board (“OTCBB”) and cover all filing and
compliance costs, and 3) assume responsibility to existing note-holders of the Company. The Company agreed to initiate and complete process
relating to the reverse split of Company’s Common Stock by two hundred to one (200:1)
The Agreement is filed hereto as Exhibit 10.1 to this Current Report on Form 8-K. The foregoing summary of the terms of the
My comments are my opinions and observations only and should be considered as such.
