MCPI, INC. (OTCMKTS:MCPI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 – Material Definitive Agreement
MCPI, INC. (OTCMKTS:MCPI) Files An 8-K Entry into a Material Definitive Agreement
On November 28, 2016, MCPI, Inc. (the “Registrant”) entered into a Material Definitive Agreement. Under the terms of the Agreement, the Registrant will issue 284,580,000 shares of its common stock to Armada Mining, Inc., an Arizona corporation, in exchange for rights and interests in mining properties in the historic Tombstone Mining District. The Registrant will acquire rights and interests to approximately 3,800 acres of contiguous mineral leases, including some property acquired in fee simple, and ownership of 100% of Tombstone Development Company, which was formed in 1933, and is believed to be the oldest continually operating mining company in Arizona. A copy of the Agreement is furnished herewith. Subject to financing and various regulatory approvals, the Registrant intends to commence development of these properties by processing previously mined materials for silver, as well as precious and base metals; by reopening and developing existing mines using modern equipment and techniques; and by completing an existing drill/test grid to establish the boundary of producible ore bodies, in anticipation of a Bankable Feasibility Study and further development.
Item 2.01 – Completion of Acquisition or Disposition of Assets
See above. The mining rights and interests identified will be acquired from Armada. Although some of these rights and interests are nominally held in the names of Armont Mining Corp., Sandwich JV or John T. Bauska (who is also President and CEO, as well as a controlling shareholder of Armada), their ownership resides in Armada.
Item 5.01 – Changes in Control of Registrant
Under the terms of the Agreement, the Registrant will issue 284,580,000 shares of its common stock to Armada in exchange for certain of its assets, which will result in Armada owning approximately 85% of the Registrant post-transaction. Armada reports that it anticipates exchanging a portion of these shares with existing shareholders; using a portion to satisfy obligations to related parties and others; and using a portion to finance other operations. The Parties have agreed that Registrant’s current management will appoint new directors and resign upon completion of a brief transition period. The Registrant also contemplates a name change, pending approval by the Nevada Secretary of State.
Item 9.01 – Financial Statements and Exhibits
The Registrant expects this results of this transaction will be fully integrated and assumed into its financial statements prior to December 31, 2016, so that it will be reported upon as part of the normal year-end audit cycle, and the requirements of Form 8-K can be incorporated into the Registrant’s next Form 10-K. The Registrant understands that such plan will require its Form 10-K to be filed prior to the due date, and currently anticipates meeting this accelerated schedule. Because the rights and interests covered by the Agreement were acquired by Armada, its predecessors, or other related persons over an extended period, in both cash and non-cash transactions, the Parties anticipate requirement of a Fair Value Report as part of the audit process, and have agreed to work together in preparation thereof. Furthermore, because, among many reasons, Armada will continue to pursue its business and this is not a liquidating transaction for Armada, the Parties do not anticipate a requirement that Armada’s financial statements be audited under the Sale of Business standards. If such contingency develops, or the Fair Value Report cannot be obtained, the Registrant is uncertain as to whether an audit of Armada’s financial statements can be completed in a timely manner, which could have a negative impact on its ability to file the referenced reports in accordance with this accelerated schedule.
About MCPI, INC. (OTCMKTS:MCPI)
MCPI, Inc., formerly Med-Cannabis Pharma, Inc., intends to focus its sales and marketing efforts on qualifying patients within states that allow medical marijuana and/or states that allow for personal recreational use of marijuana. In states where vertical integration is not permitted, the Company plans to determine which of the permitted activities offer the potential for growth and value creation. It seeks to engage, sponsor or lead local advocacy and lobbying groups that have an impact on the evolution and character of laws and the regulations under which legal marijuana operations are implemented in select markets. Its products and services range from the sale of buds and edibles, oils, consumable supplies and other products complementary to the use of medical and/or personal use marijuana. It also has a protocol for providing management services to privately owned mom-and-pop dispensaries. The Company has not generated any revenue. MCPI, INC. (OTCMKTS:MCPI) Recent Trading Information
MCPI, INC. (OTCMKTS:MCPI) closed its last trading session up +0.001 at 0.148 with 36,400 shares trading hands.
MCPI, Inc., formerly Med-Cannabis Pharma, Inc., intends to focus its sales and marketing efforts on qualifying patients within states that allow medical marijuana and/or states that allow for personal recreational use of marijuana. In states where vertical integration is not permitted, the Company plans to determine which of the permitted activities offer the potential for growth and value creation. It seeks to engage, sponsor or lead local advocacy and lobbying groups that have an impact on the evolution and character of laws and the regulations under which legal marijuana operations are implemented in select markets. Its products and services range from the sale of buds and edibles, oils, consumable supplies and other products complementary to the use of medical and/or personal use marijuana. It also has a protocol for providing management services to privately owned mom-and-pop dispensaries. The Company has not generated any revenue. MCPI, INC. (OTCMKTS:MCPI) Recent Trading Information
MCPI, INC. (OTCMKTS:MCPI) closed its last trading session up +0.001 at 0.148 with 36,400 shares trading hands.