Replies to post #18265 on Novation Holdings Inc. (NOHO)

[absolute]

Here it is::
Investments in Subsidiaries

In January, 2013, we acquired a controlling interest in Alternative Energy Partners, Inc., a mining and energy holding company whose common shares are traded on the OTCQB under the symbol AEGY. As a result of the acquisition, we acquired 40 million shares of common stock, representing approximately 19 percent of the common shares issued and outstanding, and 1 million shares of Series A Convertible Preferred stock holding voting power equal to 51 percent of the total vote of all shares entitled to vote. AEGY currently has 2 wholly-owned subsidiaries, Clarrix Energy, LLC and SAC Acquisition Corp., and anticipated acquiring a third operating subsidiary shortly, all as previously announced by AEGY. Subsequently, in May 2013, we sold the controlling preferred stock interest to a third party. The purchase price of the Series A Preferred Stock was $250,000 and was paid by a promissory note payable in five installments over the next five months, with the first installment payment due in early June, 2013. Subsequently, that note was extended for one year, with the first installment payment now due on or before February 28, 2014.


We have retained the 40,000,000 common shares, acquired at a cost of $28,000. The valuation of this stock at August 31, 2013 was $52,000, based on the August 30, 2013 closing price of $0.0013 per share and we have recorded a gain on investment in that amount as of August 31, 2013.