Item 8.01 Other Information.
On January 26, 2024, the Company successfully negotiated a significant debt reduction agreement with a noteholder, resulting in the elimination of approximately $750,000 in liabilities, primarily consisting of various types of promissory notes and a convertible note. The breakdown of this debt is as follows:
(1)
$250,000 (approximately) in convertible promissory notes, including accrued interest.
(2)
$150,000 borrowed by the company for the lease of fuel tanks in Rotterdam.
(3)
$100,000 (approximately) for payment of accrued payables, such as auditors and accounting work.
(4)
$150,000 provided to the company as advance funds to secure contracts for sugar and chicken paws.
(5)
$100,000 that the company facilitated to a third-party entity, which has yet to be repaid due to the third party's financial constraints. It's worth noting that the company acted solely as a facilitator in this transaction, and the noteholder has agreed to absolve the company of any potential liability related to this transaction.
As part of this mutually beneficial agreement, the noteholder received 300,000,000 shares of common stock in exchange for forgiving the outstanding debt. This equates to an approximate value of $0.0025 per share, considering both the cash amount and the accrued interest that the company had owed.
Furthermore, as an additional component of the agreement, the noteholder has agreed to release its reserve of shares. This action will enable the Company to significantly reduce its number of authorized common shares by approximately 40%, leading to a more streamlined and efficient capital structure.
It's essential to note that the finalization of this agreement is contingent upon the Company successfully closing a fuel deal.
The information in this Current Report on Form 8-K with respect to Item 8.01 and the Exhibit filed under 9.01 is being furnished pursuant to Item 8.01 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act. This current report on Form 8-K will not be deemed an admission as to the materiality of any information contained herein.
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 29, 2024
Nate’s Food Co.
By:
/s/ Nate Steck
Name:
Nate Steck
Title:
CEO
