Sunset Island Group Inc (SIGO)

[Alan Brochstein]

SIGO SHAREHOLDERS ARE HOSED AGAIN!

The 8-K is out with the terms of Preferred B. Wow!

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12272477

On September 8, 2017, the Company converted its note payable into its new Series B Preferred Stock. The Preferred Stock has no conversion right or no voting rights. The shareholders of the Series B Preferred will be entitled to $200 per pound that is sold by the Company. The Company issued 305,700 shares for the $305,700 note payable.

This means that instead of paying of the debt with revenue, like the company said before, the holders can get paid way more than what they have loaned. For instance, if the company sells 5000 lbs a year, then they make $1mm, or 3.3X what they would have been paid if it was just debt. More siphoning of any potential profits.

By the time Novus Group (NG Advisors) gets its percentage of the profits and the B holders get their $200 a pound, there won't be anything left for shareholders. Revenue here is meaningless!

The people running this company need a spellchecker once again too! At least they got the date right this time, lol

CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS
of
SERIES B PREFERRED STOCK
of
SUNSET ISLAND GROUP, INC.

Sunset Island Group, Inc. a corporation organized and existing under the laws of the State of Colorado (the “ Corporation ”), hereby certifies that the Board of Directors of the Corporation (the “ Board of Directors ” or the “ Board ”), pursuant to authority of the Board of Directors, and in accordance with the provisions of its Certificate of Incorporation and Bylaws, each as amended and restated through the date hereof, has and hereby authorizes a series of the Corporation’s previously authorized Preferred Stock, par value $0.0001 per share (the “ Series B Preferred Stock ”), and hereby states the designation and number of shares, and fixes the relative rights, preferences, privileges, powers and restrictions thereof, as follows:

I. DESIGNATION AND AMOUNT; PURPOSE

Designation. The designation of this series, which consists of 8,000,000 shares of Series B Convertible Preferred Stock, is the Series B Preferred Stock (the “ Series B Preferred Stock ”) and the face amount shall be $1.00 per share (the “ Face Amount ”).

Purpose. The Series B Preferred shall be used to convert the debt and for capital raising purposes.

II. RANK

All shares of the Series B Preferred Stock shall rank (i) senior to the Corporation’s Common Stock and any other class or series of capital stock of the Corporation hereafter created, (ii) pari passu with any class or series of capital stock of the Corporation hereafter created and specifically ranking, by its terms, on par with the Series B Preferred Stock and (iii) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking, by its terms, senior to the Series B Preferred Stock, in each case as to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary.

III. LIQUIDATION PREFERENCE

The Series B Preferred shall have no liquidation preference over any other class of stock.

IV. VOTING RIGHTS

The Series B Preferred shall no voting rights except as required by law.

V. DIVIDEND RIGHTS

The Series B Preferred Stock shall receive a cash dividend of $200 per pound that the Company harvested from its cultivation operations. The dividend shall be paid quarterly.

VI. CONVERISON RIGHTS

Series B Preferred may not be converted into common stock.

VII. AMENDEMENTS

The Certificate of Incorporation of the Company or this designation shall not be further amended in any manner which would materially alter or change the powers, preferences or special rights of the Series B Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a majority or more of the outstanding shares of Participating Preferred Stock voting separately as a class.

IN WITNESS WHEREOF , this Certificate of Designation is executed on behalf of the Corporation this 7th Day of September 2017.