***HUGE 8k OUT TODAY***
On December 10, 2015, Cardinal Resources, Inc. (the "Company," "we" or "us") entered into a Securities Purchase Agreement (the "SPA") with Hangzhou Sky Valley Water Technology Co., Ltd., (HSVW) a water technology company based in Suzhou, China, Jiangsu province (the "Purchaser"). The SPA provides for the issuance of shares of common stock, $.001 par value per share, equal to up to 51% of our issued and outstanding shares of common stock as of the closing of the transaction in consideration of aggregate gross proceeds of $7,500,000 to be provided in two tranches.
The description of the SPA set forth above was filed as an attachment to the Company's 8K filed on December 16, 2015. There have been no changes in the terms of the SPA. The closing had been extended to March 11, 2016.
The Company has determined that the necessary actions and steps have been taken by HSVW with the China State Administration of Foreign Exchange (SAFE) and final arrangements for the transfer of the first tranche of $3.75 million USD are underway. The formal close will occur once the funds are verified in the Company's commercial account in the coming days and the stock will then be transferred to HSVW in accordance with the SPA. With the closing development of the Joint Venture agreement and other tranche 2 milestones are commencing. Tranche 2 will close after a number of milestones outlined in the SPA are completed. Closing for tranche 2 is performance based.
HSVW is also continuing to fund the services agreement with the Cardinal Resources. The work and payments on this contract are paid in advance cash transactions that do not directly impact the SPA and do not involve the IP or stock of the Company. The assembly of the first HSVW system (produced in the USA) will be completed, and HSVW has verbally placed the order for the follow on system to be produced in the USA.
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