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Replies to post #70154 on American Leisure Holdings Inc (AMLH)
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American Leisure Holdings, Inc. Announces 3(a)(10) Transaction to Retire Debt
Posted: Jan 02, 2018 12:22 PM EST
Updated: Jan 02, 2018 12:22 PM EST
LAS VEGAS, NV / ACCESSWIRE / January 2, 2018 / American Leisure Holdings (OTC PINK: AMLH), parent of esports production and content creation company GG Media Network, announced that it has entered into an agreement to retire $171,932.00 in indebtedness through the issuance of common stock to Northbridge Financial, Inc. based on a Section 3(a)(10) Fairness Hearing. The transaction, if completed, will result in AMLH paying the indebtedness by issuing an estimated 900 million free-trading shares, based on recently quoted share prices.
The debt will be retired in tranches having a maximum value of $50,000, with the number of shares issued to be based on a 15-day trailing average of quoted prices on the OTC Pink (or other eligible market), less a 40 percent discount. The details of the transaction are set forth in a Settlement Agreement and Stipulation (SAS) dated Dec. 12, 2017, which was approved by an order of the Florida state court in Sarasota County on Dec. 13, 2017.
AMLH’s CEO Christian Bishop stated, “This agreement is part of our initiative to clean up our balance sheet and position GG Media for growth in 2018. Management determined that it is in the best interest of the Company and its shareholders to resolve this indebtedness in a way that preserves our cash resources.” AMLH issued a press release describing its business objectives for 2018.
To date, AMLH has issued 70,000,000 shares and 30 million shares as a Settlement Fee. The SAS provides for a floor price of $0.00005 per share. In connection with the transaction, AMLH will increase its authorized common stock. While the pricing terms of the SAS could result in the potential issuance of up to 3.5 billion shares to Northbridge, AMLH management believes that the resolution of its debt obligations and planned business expansion will support a stable valuation for its common stock. Nevertheless, AMLH’s stock price has been volatile, and the 3(a)(10) transaction could result in substantial dilution of AMLH’s outstanding stock.
