SITESTAR CORPORATION (OTCMKTS:SYTE) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01 in the Original Filing, the Company reported, among other things, that its wholly-owned subsidiary, Mt Melrose, LLC (“Purchaser”), consistent with the terms of that certain previously-reported Master Real Estate Asset Purchase Agreement dated December 10, 2017 (the “Purchase Agreement”) between the Company and Mt. Melrose, LLC, a Kentucky limited liability company (“Seller”), had completed a first acquisition from Seller of certain residential and other income-producing real estate properties located in Lexington, Kentucky to the Purchase Agreement.
The sole purpose of this Amended Form 8-K is to amend Item 2.01 of the Original Filing to report the completion of an additional acquisition of properties by Purchaser to the Purchase Agreement.
Except with respect to reporting the herein described completion of the additional acquisition of properties by Purchaser to the Purchase Agreement under Item 2.01 below, this Amended Form 8-K does not modify or update any other disclosure or information contained in the Original Filing, as amended by the Amendment No. 1 and by the Amendment No. 2.This Amended Form 8-K should be read in conjunction with the Original Filing, the Amendment No. 1 and the Amendment No. 2.
Item 2.01 – Completion of Acquisition or Disposition of Assets.
On Friday, June 29, 2018, Purchaser, consistent with the terms of the Purchase Agreement, completed an additional acquisition from Seller of 69 residential real estate properties located in Lexington, Kentucky to the Purchase Agreement. This additional tranche of real properties was acquired for total consideration of $4,619,130, which was payable as follows:
by Purchaser’s assumption of $2,767,158 of outstanding indebtedness secured by the acquired real properties and relevant de minimis prorated expenses; and
the balance by issuance to Seller of 18,519,720 shares of the Company’s common stock, all in accordance with the terms of the Purchase Agreement.
As a result of this second closing under the Purchase Agreement, Purchaser assumed $2,767,158 of outstanding indebtedness secured by the acquired real properties, along with all of Seller’s rights and ongoing obligations, as lessor/landlord, under all leases covering the acquired real properties.
Presently, 12 additional real estate properties are outstanding for purchase under the Purchase Agreement.
In the Amendment No. 2, the Company previously provided, in accordance with the applicable requirements of Rule 3-14 or Rule 8-06 (for smaller reporting companies) and Article 11 or Rule 8-05 (for smaller reporting companies) of SEC Regulation S-X, financial statements and pro forma financial information, respectively, with respect to Purchaser’s acquisitions of real estate properties under the Purchase Agreement.
About SITESTAR CORPORATION (OTCMKTS:SYTE)
Sitestar Corporation, formerly Interfoods Consolidated, Inc., is an Internet service provider (ISP). The Company operates through three segments: Internet, Real estate and Corporate. The Company’s Internet segment provides Internet access to customers throughout the United States and Canada. The Company’s Real estate segment invests in, refurbishes and markets real estate for resale. The Corporate group is the holding company that oversees the operating of the Internet group and arranges financing. The Company offers consumer and business-grade Internet access, wholesale-managed modem services for downstream ISPs, Web hosting, and various ancillary services. The Company owns a real estate investment portfolio that includes residential properties, vacant land and a commercial property. Its real estate portfolio is primarily focused on the Roanoke and Lynchburg areas of Virginia.