Nano Magic Inc. (NMGX)

[callmeacab]

New 8-K out for the leasing of new facilities in Madison Heights, MI beginning in Oct 2020. Ron and Tom Berman are involved in the new management company. 410,000 warrants with an exercise price of $1.50 per share will be issued pending an increase of authorized shares. On the positive side, they are attempting to execute on a plan. However, I would still like to see some improvement or positive news on sales, or at least a stated plan to increase sales. Otherwise, it is just diluting current shareholders by issuing additional shares or warrants without any increased revenues.
---------
http://compliance-sec.com/secfilings/company/penc/link_files/2020/06-04-2020/Form8-K(06-04-2020)PENINC/Form8-K.pdf

Effective May 31, 2020, we entered into a lease for a 29,220 square foot building in Madison Heights, Michigan. The occupancy date
and rent commencement date is October 1, 2020. By that date, the landlord, Magic Research LLC, is required to have completed tenant
improvements to accommodate our office and manufacturing needs. When we are established in the new facility, we expect to vacate
our facility in Brooklyn Heights, Ohio as our lease there expires in September 2020.
The new lease has a term of seven years with a renewal option at the end of the initial term for an additional 3-year term, and a second
renewal option thereafter for an additional 5-year term. As the sole tenant, we are responsible for all taxes, ordinary maintenance, snow
removal and other ordinary operating expenses. Rent is $6.50 per square foot, increasing by $0.25 per year. We also have the right for
during the first three years to buy a up to a 49% interest in Magic Research LLC for a price equal to 49% of the contributions received
from other members.
Ron Berman, one of our directors, and his son Tom Berman, our CEO and a director, each have a 2.08% ownership interest in Magic
Research LLC. The manager of Magic Research LLC is Magic Research Management LLC; Ron Berman and Tom Berman are two of
its three co-managers. Compensation to Magic Research Management LLC is $10,000 per year to oversee the recordkeeping, tax return
preparation, oversight of tenant improvements and other operating costs for the landlord.
Item 3.02 Unregistered Sales of Equity Securities.
In connection with the lease described above, we issued the landlord warrants to purchase up to 410,000 shares of our Class A common
stock at a warrant exercise price of $1.50 per share. The warrants are exercisable after we have additional authorized shares of stock
until the fourth anniversary of the date of the lease