Sunset Island Group Inc (SIGO)

[surfkast]

Would Allen Brochstein's DD need to be answered in SIGO filings?

I dug a little deeper into the transaction where Novus Group LLC acquired 4mm shares of SIGO (99.9% of the float) as well. This is from the amended S-1 filed in early January and that went effective on January 20th.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11767761




I looked at this SEC filing from the company that acquired Novus Group, the same one that most recently employed (and may still employ) both SIGO CEO TJ Magallanes and SIGO President Valerie Baugher, filed on June 14th:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12129094

Quote:
In September 2015, the Company launched a medical marijuana edible line under the brand name "Von Baron Farms". In February 2017, the Company discontinued its medical cannabis division which has ceased all operations as of February 28, 2017. On February 23, 2017, the Company acquired 100% of Novus Group LLC (dba NG Advisors), which became our wholly owned subsidiary. Novus Group LLC (dba NG Advisors) was a Company under common control and had no assets or liabilities prior to the date of acquisition.


THIS IS A BOLD-FACED LIE. Novus Group LLC held 4mm shares of SIGO prior to the acquisition!

(For those not following, the "unrelated public company" is SIGO, and it is indeed related! Another bold-faced lie! The reverse merger between SIGO and Battle Mountain Genetics was already done before this time, and Novus and this public company were already controlled by the same entity.)

Per your post, which was also sourced from the SEC filing linked above:

Quote:
On February 23, 2017, the Company acquired 4,000,000 shares of common stock of an unrelated public Company for $11,000 in contributed capital. During the year ended February 28, 2017, the Company sold 429,387 shares in this company and recorded gain on sale of marketable securities of $1,617,601.


That same filing shows that the $1.6mm may have been pre-tax, as the distributions were just under $900K:




Here is another SEC filing from May 3rd from that same public company that explains the connection to SIGO. CURIOUSLY, SIGO HAS NEVER DISCLOSED THIS INFORMATION:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12035868

Quote:
The Company has entered into a joint venture agreement with a cannabis-focused agriculture company. The Company will provide the financing for the construction of a new 8,000 square foot cultivation facility. In exchange, the company will receive a percent of the profits from its operations. The goal would be to grow the facility to 22,000 square feet in the next 12-24 months.


This is from May 3rd. Unfortunately, it doesn't say how much of the profits will go to this other public company.

We do know that those profit go directly to Joseph Wade (Joseph Wade Mezey, disbarred lawyer) and Matt Billington of Wade Billington Partners, as disclosed in this SEC filing on 5/23:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12088815

Quote:
The Company acquired NG Advisors from its members on February 23, 2017. As part of the acquisition, the members of NG Advisors didn’t receive any additional stock or cash from the transaction. The members already were the majority shareholders of the Company and owned 100% Series F Preferred Stock (held by Wade Billington Partners). As a private company, the profits of NG Advisors and consulting operations were distributed to its members in accordance to the operating agreements.

As part of finalizing the acquisition; however, the members will no longer will be receiving the profits from NG Advisors or the related consulting operations. Instead, going forward the holders of the Series F Preferred Stock shall be entitled to monthly distributions of $130,000 per month from the profits from the consulting operations. If there are no monthly operational profits from NG Advisors or the consulting business than no distribution shall be made to the Series F shareholders. No officer or director receives a salary from the Company; however, the Company may create bonuses based on performance for its officers and/or directors.


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