FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 9, 2018, at a special meeting of the Board of Directors (the “Board”) of Foothills Exploration, Inc. (“FTXP” or the “Company”) the Board voted to grant all current executive officers and directors the right to convert part or all of their respective accrued unpaid salaries for 2017 and year-to-date through April 30, 2018, into shares of restricted FTXP common stock.
The Company owes its executive officers and directors the amounts set forth below for 2017 and year-to-date through April 30, 2018 accrued unpaid salaries:
| ● | Kevin J. Sylla – $229,400 |
| ● | B.P. Allaire – $110,300 |
| ● | Christopher C. Jarvis – $166,000 |
| ● | Alex M. Hemb – $171,750 |
The Board believes that restructuring the salary-owed debt above is in the best interests of the Company and its shareholders. The Board resolved to offer to the aforementioned persons the following shares of restricted FTXP common stock in satisfaction of the above-noted amounts:
| Recipient |
Total Restricted Shares of FTXP Common Stock Issuable for Debt Satisfaction (in whole or in part on pro-rata basis) |
| Kevin J. Sylla | 1,529,333 |
| B.P. Allaire | 795,333 |
| Christopher C. Jarvis | 1,106,667 |
| Alex M. Hemb | 1,145,000 |
The Board resolved further that each of the proposed recipients so named above shall have forty-five (45) days from the May 9, 2018 Board meeting in which to accept the foregoing, whether in whole or in part, by completing and delivering to the Company’s CEO a signed common stock election form, detailing the amount of salary-owed debt each recipient elects to convert into restricted shares of FTXP common stock and the pro-rata amount of the above restricted shares of FTXP common stock each recipient wishes to receive in lieu of said cash compensation.
It was resolved further by the Board that if the Company does not receive from any of the above-named persons an executed common stock election form on or before June 23, 2018, by which all or some portion of their respective salary-owed debt is settled in full or in ratio to the total debt owed, this offer shall expire, terminate and have no further effect whatsoever.
All parties understand that the foregoing is a compromise in settlement and that the securities to be received are highly speculative, do not do not necessarily translate into any particular amount that each recipient may recover on sale, that the securities are illiquid and may never be sold and further that each recipient is hereby accepting a risk of complete loss.
The Board has no independent directors and the proposed foregoing transaction is not an “arm’s length” transaction reviewed with or passed upon by any qualified independent third party. The Board believes nevertheless, that the elimination of over $677,000 of debt for the equity amounts given above by conversion of these obligations into equity of the Company in the form of restricted shares of common stock represents a benefit to the Company.
Item 8.01. Other Events.
Effective May 9, 2018, the Board also awarded warrants to purchase 650,000 shares of FTXP common stock to an outside service provider at a strike price of $0.20 per share and with an exercise term of 48 months. A copy of the warrant is attached hereto as Exhibit 10.1 and is incorporated herein by this reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description |
| 10.1 | Form of FTXP Warrant |
FOOTHILLS EXPLORATION, INC. ExhibitEX-10.1 2 ex10-1.htm WARRANT TO PURCHASE SHARES OF COMMON STOCK FOOTHILLS EXPLORATION,…To view the full exhibit click here
About FOOTHILLS EXPLORATION, INC. (OTCMKTS:FTXP)
Foothills Exploration Inc, formerly Key Link Assets Corp., is a shell company. The Company’s business plan is to acquire small and medium grocery stores in non-urban locales that are not directly served by large national supermarket chains. The Company plans to acquire grocery stores that are approximately 15,000 to 20,000 square feet in size. The Company seeks to drive additional customer traffic to its acquired grocery stores and expand their operating margins through the introduction of new products and services to those stores that lack them, including pharmaceutical services, floral departments, gasoline and other automotive products, prepared foods, lottery service and alcoholic beverages. The Company’s stores will sell non-perishable, perishable and non-food products. The products include various categories, such as grocery, frozen and dairy; produce; meat and seafood; bakery; floral; beer, wine and spirits, and health and beauty care.
