Artec Global Media Inc. (ACTL)

[tibt913]

Acquisition of Silo Marketing & Funding LLC

As of December 30, 2016, the Company entered into a Purchase Agreement (the “ Purchase Agreement ”) with Elizabeth Honeycutt and Peter Corrao (collectively, the “ Sellers ”) to acquire from the Sellers a 100% interest in Silo, including all of the membership interests in Silo. The Company completed that acquisition on December 30, 2016. In accordance with the Purchase Agreement, and as full consideration for the acquisition, on December 30, 2016 the Company issued to the Sellers 250 shares of Series S convertible preferred stock of the Company, which, in the aggregate, may be converted into up to 25% (after giving effect to such conversion) of the issued and outstanding shares of the Company’s common stock, par value $0.001 per share (“ Common Stock ”), on the date of conversion. A description of the Series S convertible preferred stock of the Company is included under Item 3.03 below. In addition, in accordance with the Purchase Agreement, the Company supplied $100,000 of working capital to Silo on December 30, 2016, and the Company has agreed to supply additional working capital to Silo in three separate installments of $50,000, to be supplied at the end of January 2017, February 2017 and March 2017, respectively. A copy of the Purchase Agreement is filed as an exhibit to this Form 8-K.
ACTL