Convertible Preferred Stock. In January 2020, our board of directors designated 50,000 shares of our preferred stock as Convertible Preferred Stock. The Convertible Preferred Stock is entitled to receive dividends of 10% of the net profit of VIVIS Corporation. After the Convertible Preferred Stock has received cumulative dividends of $1,100,000, the dividend rate will reduce to 2%. The Convertible Preferred Stock is convertible into 100,000 post reverse shares of common stock of the Company. During the year ended January 31, 2020, the Company issued 50,000 shares of Convertible Preferred Stock and received cash proceeds of $250,000.
100% of this convertible preferred stock was issued to Sydney - this appears to be in addition to the following: On August 30, 2019, we purchased all of the outstanding stock of Vivis Corporation, a Wyoming corporation, (“Vivis”) from Sydney Jim, our CEO. The purchase price for Vivis is $35,000 cash and a royalty of 40 percent of gross revenue until $100,000 is paid declining to 25 percent until an additional $100,000 has been paid. There will be a 10 percent royalty in perpetuity.