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Subsequent Event
12 Months Ended 10 Months Ended
Mar. 31, 2012
Studio II Brands, Inc. (Successor)
Feb. 09, 2011
Hippo Lace Limited (Predecessor)
Subsequent Event:    
Subsequent Event

NOTE 17 SUBSEQUENT EVENT

 

We evaluated subsequent events through the issuance date of our financial statements.

 

After acquisition of Sino Wish by HLL, HLL and Sino Wish agreed to terminate the franchise agreement signed on April 1, 2010 with effect from April 1, 2012.  In this connection, HLL based on a supplementary agreement entered with Sizegenic in March 2010 to grant the right to Sino wish to operate the caffé Kenon restaurant at Tai Yau Plaza, Hong Kong at annual fee of $5,136 for the third year of the term.

 

In conjunction with the termination of subfranchise agreement:

 

(a)                no subfranchise fee income of HK$80,000 (approx. $10,272) from Sino Wish for  the remaining third year term of the agreement to be recognized in April of 2012.

(b)                franchise fee expenses of HK$40,000 (approx. $5,136) for Sino Wish for the remaining third year term of the agreement to be recognized in April of 2012.

NOTE 15 SUBSEQUENT EVENT

 

We evaluated subsequent events through the issuance date of our financial statements.  On February 10, 2011, the Company and the sole shareholder Mr. Gu Yao (“Gu”) entered into Share Exchange Agreement and Supplementary Agreement with Studio II Brands, INC. (“Studio II”), a Florida corporation whereby Studio II agreed to issue 2,291,100 shares of the common stock to Mr. Gu Yao as consideration (i) to acquire all of the issued and outstanding shares of HLL owned by Gu Yao valued at $34,450, and (ii) to pay off the outstanding shareholder loan owed to Gu Yao by HLL.  Accordingly, after completion of the transaction described above, the outstanding shareholder loan in the amount of $184,226 was owed by HLL to its sole shareholder, Studio II.

 

Upon consummation of the transaction, Studio II would become the ultimate holding entity of the Company.  The exchange transaction was a private placement transaction, and the shares issued in the exchange transaction were not registered under the Securities Act of 1933, in reliance upon exemptions from registration provided by Section 4(2) of the Securities Act and by Regulation S promulgated under the Securities Act. Accordingly, all shares issued in the exchange transaction will constitute “restricted securities” as defined in Rule 144 under the Securities Act of 1933.

 

HLL and Beijing Kenon Bistro Catering Limited (“BJ Kenon”), the subfranchisee located in Beijing, agreed to terminate the franchise agreement signed on April 1, 2010 with effect from May 31, 2011 due to restructuring of Beijing subfranchisee who agreed to pay HLL an early termination fee of RMB40,000 (approximately $6,200).  In this conjunction, no subfranchise fee income of RMB80,000 (approx. $11,080) for each of the remaining two year term of the agreement to be recognized in April of 2011 and 2012 respectively.