Replies to post #61938 on Marijuana Inc (MAJI)

[samsamsamiam]

I have some notes somewhere on that one - might have even posted about it.
I'll have to look. thanks

[samsamsamiam]

The filing on that deal and why it didn't happen were pretty interesting:

NOTE 13 – ACQUISITION OF LAKE VICTORIA MINING COMPANY


In December 2018, we purchased control of a public shell company, Lake Victoria Mining Company. (“LVCA”), for $150,000 cash, incurred $30,300 of acquisition costs, and which included a noncontrolling interest of $15,085 for a total investment amount of $195,385, through which we intended to effectuate becoming a public company through a reverse merger transaction. The transaction was recorded as an asset acquisition (as we purchased 2,000 authorized unregistered shares of Series L preferred stock, the “Control Shares”) and substantially all of the purchase consideration was allocated to an intangible asset. During the fiscal year ended April 30, 2019, we determined that LVCA was not a suitable entity through which we could accomplish our objective. In addition, we evaluated the impairment indicators including, but not limited to:


a.
An investor would not finance the LVCA transaction due to the fact that it would not be able to take advantage of the SEC Rule 144 exemption as LVCA was not a ‘reporting company

b.
The Control Shares cannot be converted into shares of LVCA’s common stock and do not trade on any exchange or marketplace

c.
There is no liquid market for a voting control block of an OTC pink traded entity with no assets.

d.
When we tried to sell the Control Shares in early May 2019, no buyers emerged, and

e.
A well known broker of public shell companies informed the Company that LVCA was not marketable.

Based on these indicators, we determined that the asset was permanently impaired, and we recorded an impairment charge related to the investment in LVCA of $195,385, leaving a net realizable value of $0 as of April 30, 2019

In July 2019, we sold our investment in LVCA to an entity owned by the CEO and COO of the Company for $1,000 and the assumption of $23,822 of liabilities resulting in an increase in additional paid in capital of $24,822.