After the sale of the Luxuria and debt repayment, there's essentially no cash left to operate the business, let alone start the funding of the build out of a new line of luxury vessels
This CEO screwed everyone
Item 1.01
Entry into a Material Definitive Agreement.
The Company entered into a Note Settlement Agreement with Tonaquint, Inc. and St. George Investments LLC with regard to certain secured convertible notes by and among the Company and each of Tonaquint and St. George (the “Note Holders”). Pursuant to the Notes, the Company owed $313,442.48 to Tonaquint and $622,394.22 to St. George. Upon the sale of the Luxuria, a luxury floating vessel owned by the Company and which was security under the Notes, the Company agreed to pay to the Note Holders $600,000. Upon that payment the Note Holders would release their liens against the Luxuria, so that the Company could complete the sale thereof as further described in Item 2.02, below.
The Company has until September 19, 2019 to pay an additional $70,000 (the “September Payment”) to the Note Holders in full satisfaction of the Notes. From the time of the payment of the initial $600,000 through the date of the September Payment the Note Holders have agreed to forebear their right to seek to convert any of the debt into the common stock of the Company. However, should the Company not make the September Payment then it will be in breach of the Note Settlement Agreement and the Note Holders will be entitled to exercise any and all remedies available under the Notes, including their right to convert.
Item 2.01
Completion of Acquisition or Disposition of Assets.
On April 24, 2019, the Company closed on the sale of the Luxuria, the luxury floating vessel, designed, built and owned by the Company. The purchase price of the Luxuria was $750,000. Upon closing the Company paid $600,000 to Tonaquint Inc. and St. George Investments LLC in accordance with the Note Settlement Agreement described in Item 1.01, above. Additionally, the Company was obligated to pay a brokerage fee of $22,500 on the sale. Neither the purchaser nor the broker was not an affiliate of the Company.
