$HAON Pays off Debt, Cancels Shares, Sells subsidiaries for $3M$HAON is in the final stages of a spin out and merger transaction that has been in the works for the past several months.
Two of $HAON's wholly-owned brands which have over 300,000 consumers on their customer lists are in the ever-growing scrapbooking marketplace. These two brands are in the process of being spun out into an online social marketing/digital storage company which is currently a public company. The Company anticipates that the acquiring company's platform may be able to fill the gap as a cross between Facebook, Inc. in social marketing, and Ancestry.com in researching public records.
In exchange, shareholders of Halitron, Inc. (otc pink:HAON) are currently expected to receive a stock dividend of 40 shares of the digital scrapbooking company's common stock for every 1,000 shares of Halitron, Inc. common stock owned, subject to review and approval by the Financial Industry Regulatory Authority (FINRA).
The primary assets acquired were the brands, and associated customer lists, Web sites, and creative artwork. The brands have been operating on idle through the second half of the year contemplating a capital infusion to implement the Company's growth plans with regard to those brands.
Halitron is on target to raise the $300,000 necessary to proportionately increase sales of its four existing legacy brands to between $3 to $5 million annually.
Halitron engaged Freidman LLP to audit the books and records of Halitron in preparation for listing on the OTCQB market.
On July 14th $HAON Cancelled 1.3 Billion Shares and Closed Section 3(a)(10) Debt Transaction.
The Debt Transaction Canceled and Fully Diluted Shares Outstanding Decreased by 31%
$HAON announced that the two final payments totaling $63,471 that were forecasted to be paid through the issuance of an estimated 1.3 Billion free trading shares based on the Section 3(a)(10) Fairness Hearing process as outlined in the Form 8-K filing with the Securities and Exchange Commission on May 15, 2017 will not be completed and the share reserve agreement has been canceled.
Management decided it was in the best interests of Halitron, Inc. shareholders to negotiate the closure of the Section 3(a)(10) agreement with Northbridge Financial.
One of the main objectives of going through the Section 3(a)(10) was to get professional fees paid in full so we can complete the objective of finishing the audit. Those payments were made in full. Significant payments were made against the other vendors which has only $63,471 remaining and Management feels that through upcoming transactions we will be able to honor those commitments and advance the Company's growth model.
On July 18th $HAON Sold Two Brands in $3+ Million Deal
Halitron, Inc. Sold Two Archival Brands to Life's Time Capsule Services, Inc. (LTCP) and Received 2.8M LTCP Restricted Common Shares plus 80M Preferred Stock C of LTCP
The two brands owned by Halitron were: Archival Photo Pages and Archival Museum Supplies
The Company plans to distribute the preferred shares to its shareholders of record of Halitron as of September 29, 2017. The Company believes the value of the Preferred Stock C to be approximately $3M, or about $.0375 per share ($3,000,000 / approximately 80,000,000 shares outstanding = approximately $0.0375 per share). The Preferred Stock C has the right to a fixed dividend payment due in three years on July 18, 2020, in the amount of $0.0375, which shall be paid in the form of cash, assuming profitable, or Life's Time Capsule shares of common stock at the time of payment; the payment form is at the Company's discretion.
As previously reported, Management anticipates completing the audit shortly and preparing and filing a super Form 10-K with required disclosures dating back to 2008 shortly thereafter, at which time HAON will become a reporting Pink Sheet OTC Market company.
