10. Subsequent Events.
In February 2019, the Company entered into a letter of agreement with Lead Innovation Limited, a Macau company (“Lil Macau”). Lil Macau was formed with the vision of developing lifestyle products and projects of innovative, creative nature that fosters a modern lifestyle of quality and leisure. Since inception in 2016, Lil Macau has developed certain projects in the People’s Republic of China through its wholly owned subsidiary Zhuhai City Unicorn Hotel Management Co., Ltd. (WFOE), a PRC company. Additionally, Lil Macau recently entered into business in the food and beverage distribution industry in Macau which business extends to other countries in Asia. Lil Macau, through its WFOE subsidiary, also owns business and certain high-end properties in the Zhongshan City of Guangdong Province in the People’s Republic of China.
Chun Hong Cheng Cheng, majority shareholder, sole officer and director of the Company is also the majority shareholder, sole officer and director of Lil Macau.
Pursuant to the letter of agreement, the sellers (Mr. Cheng Cheng and Pak Ying Cheng Cheng), have agreed to sell all of their shares in Lil Macau representing 72.4% of total issued and outstanding shares of Lil Macau in exchange for convertible preferred shares of the issuer. The preferred shares shall be convertible after 18 months from issuance at a conversion rate of 10 common shares for each $1 of preferred shares. The amount of
preferred shares to be issued shall be determined prior to closing of the transaction. The required Macau government approvals have been obtained and a closing date of April 26, 2019 has been determined.
