UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): |
July 14, 2021 |
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Video River Networks, Inc.
(Exact name of registrant as specified in its charter)
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Nevada |
File Number: 0-30786 |
87-0627349 |
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(State of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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370 Amapola Ave., Suite 200A, Torrance, CA 90501 |
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(Address of principal executive offices) (Zip Code) |
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(310) 895-1839 |
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(Registrant’s telephone number, including area code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
SECTION 1 - REGISTRANT'S BUSINESS AND OPERATIONS
ITEM 1.01 - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On July 14, 2021, Video River Networks, Inc. (the “Company”) entered into a Securities Purchase Agreement (SPA) with the CEO of Drone Guarder, Inc. (DRNG) to acquire preferred shares of Drone Guarder, Inc. with super voting power of 55% of all votes. The purchase was an all-cash transaction with the initial $20,000 already paid to the CEO by wire transfer.
The execution of the SPA gave us control of DRNG. The purpose of the acquisition was to enable us to gain access and control of DRNG’s drones and artificial intelligence technologies.
Following the SPA, we intend that DRNG be run as an independent company. Adam Taylor will remain president and CEO, and Frank Igwealor will become Chairman and Co-CEO.
The foregoing summary of the Agreement is qualified in all respects by the Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by this reference.
ITEM 5.02 – DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENT OF CERTAIN OFFICERS.
On July 13, 2021, Video River Networks, Inc. (the “Company”) hired Mr. Robert (Bob) E. Altermatt to become its Vice President in charge of Drones and Artificial Intelligence. Bob is a Northrop Grumman aerospace veteran with 25 years of experience in diverse project management, Research and Development, inventions and innovation initiatives.
Bob will enhance the company’s Drone and Ai division, and will join DRNG board as director working directly with Adam Taylor, the CEO of DRNG.
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Item 9.01. |
Financial Statements and Exhibits.
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(d) |
Exhibits. |
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Exhibit No. |
Description/Exhibit |
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10.1 |
Securities Purchase Agreement (SPA) |
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10.2 |
NIHK Press Release 7.15.2021 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Video River Networks, Inc.
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Dated: |
July 15, 2021 By: |
/s/ Frank I Igwealor |
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Frank I Igwealor, CPA, JD, CMA, CFM, ESQ |
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President and CEO |
TORRANCE, Calif., July 15, 2021 /PRNewswire/ -- Video River Networks (OTC:NIHK), an Electric Vehicles and Battery Technology holding company, announced today that it has signed a deal to acquire Drone Guarder Inc. (OTC:DRNG). DRNG is a security and surveillance company that focuses on commercializing a drone and AI technology enhanced home security system as a turnkey solution locally and internationally.
Video River Networks (OTC:NIHK) will run DRNG as an independent company. Adam Taylor will remain president and CEO. And Frank Igwealor will become Chairman and Co-CEO.
The deal also includes Video River Networks purchasing 5,500,000 DRNG Special 2021 series A preferred shares for a total of $20,000. The purchase price will be payable in two tranches. 10% or $2,000 after the verbal agreement and 90% or $18,000 following execution of the agreement.
Video River Networks will also pay the fees required to reinstate DRNG and bring it current with OTC Markets. Moreover, within 30 days after DRNG has become Pink Current on the OTC Market, Video River Networks shall provide a working capital of $20,000 to Drone Guarder, Inc. to finish and bring-to-market its Drones and Artificial Intelligent products.
Additionally, Video River Networks have also hired a Northrop Grumman aerospace veteran to enhance their Drone and Ai division, and will join DRNG board as director. Northrop Grumman being an NYSE traded company that's among the world's best in the industry;The Video River Networks team is excited about this hire because of the vast experience and knowledge that will be brought into Video River Networks.
With this acquisition deal being announced along with the new hire, Video River Networks are expecting a big and successful business venture into the security and surveillance industry.
The CEO of Video River Networks commented:
"We are so excited by this acquisition, as well as the new hire to our company. We see both events bringing great things into the Video River Networks ecosystem."
The news comes following Video River Network's influx of recent company updates. Which have made their investors very excited and eager to see the future of the company unfold.
About Video River Networks, Inc.
Video River Networks, Inc. is an Electric Vehicles and Battery Technology holding company that operates and manages a portfolio of Electric Vehicles, Artificial Intelligence, Machine Learning and Robotics ("EV-AI-ML-R") assets, businesses and operations in North America. The Company's current and target portfolio businesses and assets include operations that design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices mostly engineered through Artificial Intelligence, Machine Learning and Robotic technologies. NIHK's current technology-focused business model is a result of our board resolution on September 15, 2020 to spin-in/off our specialty real estate holding business to an operating subsidiary and then pivot back to being a technology company. The Company has now returned back to its original technology-focused businesses of Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices. For more information and the latest updates check the company's Twitter account at https://twitter.com/NIHKEV
CONTACT:
Video River Networks, Inc.
370 Amapola Ave., Suite 200A
Torrance, CA 90501
contact@videorivernetworks.net
SOURCE Video River Networks
SECURITIES PURCHASE AGREEMENT
This SECURITIES PURCHASE AGREEMENT, dated as of July 12, 2021 (this "Agreement") is entered into by and among Drone Guarder, Inc., a Nevada Corporation and public company traded under the symbol DRNG on the OTC Markets (the "Company"), and Video River Networks, Inc.. (the "Purchaser"). The parties, intending to be legally bound, hereby agree as follows:
WHEREAS, the Shareholder and Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations promulgated by the United States Securities and Exchange Commission (The “SEC”) under the Securities Act of 1933, and amended (the “1933 Act”);
WHEREAS, the Shareholder desires to issue and sell to Purchaser upon the terms and conditions set forth herein, and Purchaser desires to purchase from Shareholder five million five hundred thousand (5,500,000) Special 2021 series A preferred share;
WHEREAS, the 5,500,000 shall always control a fixed 55% of the total voting power (Super-Voting Power) of ALL combined classes of ALL issued and outstanding shares of Drone Guarder, Inc., a Nevada Corporation (the “Shares”)(the “Transaction”); and
NOW, THEREFORE, in consideration of the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Shareholder and Purchaser agree as follows:
1. Purchase of the Shares. On the Closing Date, subject to the terms and conditions of this Agreement, Shareholder hereby agrees to sell to Purchaser and Purchaser hereby agrees to purchase from Shareholder, the Shares.
2. Purchase Price. The Purchase Price for the Shares shall be twenty thousand ($20,000) dollars (the “Purchase Price”). The Purchase Price shall be payable in two tranches as follow: (1) $2,000 to Shareholder after verbal agreement, and (2) $18,000 to the shareholder following execution of this agreement. All payments shall be through wire transfer upon (1) verbal agreement and (2) upon execution of this written Agreement, which is the memorialization of the verbal agreement.
3. Purchaser shall also pay the following fees to reinstate DRNG and bring it current with OTC Markets: (1) all the fees necessary to reinstate DRNG and bring it in compliance with the Nevada Secretary of State; (2) all fees owned to the Stock Transfer Agent; and (3) all fees due to OTC Market Group to regain access to OTCIQ.
4. Within 30 days after DRNG has become Pink Current on the OTC Market, Purchaser shall provide a working capital in the amount of twenty thousand ($20,000) dollars, to Drone Guarder, Inc. to finish and bring-to-market, its Drones and Artificial Intelligent products.
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5. After the closing date, DRNG shall change its Stock Transfer Agent from TranShare Corporation of Bayside Center 1, 17755 North US Highway 19, Suite 140, Clearwater, FL 33764 to Pacific Stock Transfer Co. of 6725 Via Austi Parkway, Suite 300, Las Vegas, NV 89119.
6. Closing; Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth herein, the date and time of the Closing of the Transaction shall be on or before 12:00 noon, Eastern Standard Time, no more than five (5) days following the execution of this agreement or July 31, 2021 (the “Closing Date”). The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties. At Closing, upon receipt of the Purchase Price from the Purchaser, the Shareholder shall cause to be delivered to the Purchaser one or more stock powers bearing medallion guarantees evidencing the Shares to the Purchasers or its nominees.
7. Representations and Warranties of Shareholder. Shareholder hereby represents and warrants to Purchaser in the First Closing that the statements contained in the following paragraphs of this Section 4 are all true and correct as of the date of this Agreement and the Closing Date:
a. Corporate Power. Shareholder has all requisite legal and corporate power to enter into, execute, deliver and perform this Agreement of even date herewith between Shareholder and Purchaser. This Agreement has been duly executed by the Shareholder and constitute the legal, valid and binding obligations of Shareholder, enforceable in accordance with their terms, except as the same may be limited by (i) bankruptcy, insolvency, moratorium, and other laws of general application affecting the enforcement of creditors' rights and (ii) limitations on the enforceability of the indemnification provisions of the Registration Rights Agreement as limited by applicable securities laws.
b. Authorization.
i. Corporate Action. All corporate and legal action on the part of Shareholder, its officers, directors and shareholders necessary for the execution and delivery of this Agreement, the DRNG Shares, and the performance of Shareholder's obligations hereunder have been taken.
ii. Valid Issuance. The Preferred Share(s), when issued in compliance with the provisions of this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens and encumbrances; provided, however, that the Preferred Share(s), and any securities into which it may be converted, may be subject to restrictions on transfer under state and/or federal securities laws as set forth herein, and as may be required by future changes in such laws.
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c. Government Consent, Etc. No consent, approval, order or authorization of, or designation, registration, declaration or filing with, any federal, state, local or other governmental authority on the part of Shareholder is required in connection with the valid execution and delivery of this Agreement and Note other than, if required, filings or qualifications under the Nevada Securities Act, as amended (the "Nevada Law"), or other applicable blue sky laws, which filings or qualifications, if required, will be timely filed or obtained by Shareholder. The execution, delivery and performance of the Agreement by the Shareholder and the consummation by the Shareholder of the transactions contemplated thereby do not and will not conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement filed (or incorporated by reference) as an exhibit to the SEC Reports (as defined below).
d. Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth herein, no registration under the 1933 Act is required for the offer, issuance and sale of the Shares, by the Shareholder to Purchaser as contemplated hereby.
8. Representations and Warranties by Purchaser. Purchaser represents and warrants to Shareholder as of the Closing Date as follows:
a. Investment Intent: Authority. This Agreement is made with Purchaser in reliance upon Purchaser's representation to Shareholder, evidenced by Purchaser's execution of this Agreement, that Purchaser is acquiring the Shares for investment for Purchaser's own account, not as nominee or agent, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the 1933 Act; provided, however, that by making the representations herein, Purchaser does not agree to hold any of the Shares for any minimum or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. Purchaser has the requisite right, power, authority and capacity to enter into and perform this Agreement and the Agreement will constitute a valid and binding obligation upon Purchaser, except as the same may be limited by bankruptcy, insolvency, moratorium, and other laws of general application affecting the enforcement of creditors' rights.
b. Knowledge and Experience. Purchaser (i) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of Purchaser's prospective investment in the Shares (ii) has the ability to bear the economic risks of Purchaser's prospective investment; (iii) has had all questions which have been asked by Purchaser satisfactorily answered by Shareholder; and (iv) has not been offered the Shares by any form of advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any such media. Purchaser represents and warrants that it is an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities Act.
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c. Transfer Restrictions. Purchaser covenants that in no event will it sell, transfer or otherwise dispose of any of the Shares other than in conjunction with an effective registration statement for the same under the Securities Act or pursuant to an exemption there from, or in compliance with Rule 144 promulgated under the Securities Act or to a person related to or an entity affiliated with said Purchaser and other than in compliance with the applicable securities regulation laws of any state.
d. Legends. Shareholder may place the following legends on the Shares and any securities into which it may be converted:
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS ("BLUE SKY LAWS"). ANY TRANSFER OF SUCH SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT UNDER THE ACT OR AS REQUIRED BY BLUE SKY LAWS IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE SHAREHOLDER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT OR BLUE SKY LAWS.
9. Indemnification of Shareholder The Purchaser will indemnify and hold Shareholder and its directors, officers, shareholders, partners, employees and agents (each, a "Shareholder Party") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation (collectively, "Losses") that a Shareholder Party may suffer or incur as a result of or relating to the failure of the representations and warranties of the Shareholder to be true and correct.
10. Miscellaneous.
a. Waivers and Amendments. The provisions of this Agreement may only be amended or modified in a writing executed by each of Shareholder and Purchaser. A waiver shall not be effective unless in a writing by the party against whom such waiver is to be enforced.
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b. Governing Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to the conflicts of law provisions thereof. Any action arising out of this Agreement shall be heard in any court of general jurisdiction in Washoe County, Nevada. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
c. Entire Agreement. This Agreement, the Registration Rights Agreement and the Warrants constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.
d. Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement.
e. Notices, etc. Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given (i) upon receipt if personally delivered, (ii) three (3) days after being mailed by registered or certified mail, postage prepaid, or (iii) one day after being sent by recognized overnight courier or by facsimile:
If to Purchaser,
VIDEO RIVER NETWORKS, INC.
If to Seller,
Adam Taylor
President and CEO
Drone Guarder, Inc.
86-90 PAUL STREET,
LONDON, EC2A 4NE, GBR
f. Validity. If any provision of this Agreement shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
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g. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one instrument.
h. Assignment. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
i. Remedies. The Purchaser shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date and year first written above.
For the Shareholder:
_// Adam Taylor ________________
By: Drone Guarder, Inc.. / Adam Taylor
Its: President and CEO
For the Purchaser
__//Frank I Igwealor______________________
By: VIDEO RIVER NETWORKS, INC. / Frank I Igwealor
Its: President and CEO
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