GME Innotainment, Inc. (OTCMKTS:GMEV) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry Into Material Definitive Agreement
On September 25, 2017, the Company entered into a Securities Exchange Agreement with PureSafe Water Systems, Inc. (“Seller”) through which the Company purchased 50% of the outstanding common stock of Sustainable Resources Corporation, a Delaware corporation (“Sustainable”), in exchange for the issuance by the Company of a $3,000,000 non-convertible promissory note bearing a 5% per annum interest rate with a five year term. As part of the Agreement, the Company granted to Seller a twelve (12) month option to purchase up to thirty percent (30%) of the Company’s then outstanding common stock (at time of exercise of option by Seller) at a price equal to seventy five percent (75%) of the average of trading prices during the first thirty (30) days following the closing. The Agreement constitutes a tax-free exchange and is attached as Exhibit 4.1. The promissory note executed as part of the Agreement is attached as Exhibit 4.2. The parties also entered into a Royalty Agreement that is attached as Exhibit 4.3 and provides for the delivery of a five percent royalty of the gross revenue earned by Sustainable beginning on July 1, 2018.
Sustainable holds licenses to produce a unique patented mobile and stationary water filtration system that was designed to be both an emergency response water filtration system, as well as, a permanent solution where drinkable water is not available for Government entities, companies and organizations. The self-contained and self-powered water filtration system can be mobilized to a site and within 30 minutes will produce drinking quality water from flood waters, surface and fresh water, desalinating ocean and/or brackish waters. This mid-range, 30,000 gallon per day system has also found a huge application in known contaminated water sources where water clarity, water borne disease and high bacteria content exist, and where mobile, self-contained systems are applicable to bring clean water to the population wherever they are located. The system can dispense water in bulk, by container or in half liter plastic bags to suit the situation.
Item 5.01 Changes in Control of Registrant.
On September 25, 2017, in connection with the Securities Exchange Agreement, Lisa Demmons assigned 43,755,932 shares of common stock in the Company to Yves Michel. Based on the 64,629,912 shares of outstanding shares of the Company’s common stock as of August 31, 2017, this transaction resulted in Mr. Michel holding 67.7% of outstanding shares and voting rights of the Company.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On September 25, 2017, Matthew Miller resigned as Chief Executive Officer, Chief Financial Officer, and Director of the Company.
On September 25, 2017, a majority voting block of shareholders appointed and elected Yves R. Michel (52) as Chief Executive Officer, Chief Financial Officer and Director of the Company, respectively, at an annual salary of $150,000.00, plus a commission of 6.5% of Sustainable’s gross sales generated by him. Prior to that, Mr. Michel was the President and Chief Operating Officer for PureSafe™ Water Systems, Inc., as well as the President of Sustainable. Mr. Michel joined the organization in 2015 as the Director of Global Sales & Marketing and subsequently became the President and COO. He was responsible for overseeing the daily operations of the organization. Mr. Michel was also the former Commissioner of Economic Development and Workforce Housing for the County of Suffolk, New York, which is the ninth largest County in the United States that spans 900 square miles and has a population of 1.5 million people. Mr. Michel was also the Chief Executive Officer of the Brookhaven Industrial Development Agency and Deputy Director of Economic Development for the Town of Brookhaven. With more than 25 years of private sector experience, Mr. Michel was Vice President of Sales and Distribution for the Americas with REALVIZ Corporation, and also held executive positions at Hewlett-Packard, Autodesk and Silicon Graphics, Inc.
Item 8.01 Other Events.
ITEM 9.01. Financial Statements and Exhibits.
Securities Exchange Agreement dated September 25, 2017
Promissory Note dated September 25, 2017
Royalty Agreement dated September 25, 2017
GME INNOTAINMENT, INC. ExhibitEX-4.1 2 gmev_ex4z1.htm EXHIBIT 4.1 SECURITIES EXCHANGE AGREEMENT This Securities Exchange Agreement (this "Agreement") is dated as of September 25,…To view the full exhibit click
About GME Innotainment, Inc. (OTCMKTS:GMEV)
The Great China Mania Holdings, Inc. (GMEC) has focused on developing and maintaining the entertainment businesses including talent management, event management, movie productions and movie distributions. The Company’s wholly owned subsidiary Super China Global Limited (SCGL) in British Virgin Islands (BVI) was formed to hold fellow subsidiaries. The Company owns approximately 13 subsidiaries through SCGL. The Company’s GME Holdings Limited operates an artist management and event management business in Hong Kong. Its GME Distribution Workshop Limited (GMED) manages movie-related businesses in Hong Kong. The Company’s GME London operates the businesses of concert management in the United Kingdom and Asia Pacific region. It organizes large scale music-related events, such as music festivals, concerts, ceremonies or formal parties. Its MY GME Sdn. Bhd. operates the businesses of movie casting, model management, model scouting and event management in Malaysia, Singapore and Thailand.