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Note 5 - Preferred Stock
9 Months Ended
Sep. 30, 2017
Notes  
Note 5 - Preferred Stock

NOTE 5 - PREFERRED STOCK

 

The Company is currently authorized to issue 5,000,000 Class A preferred shares, $0.001 per value with 1:25 voting rights. The Series A Preferred Stock ranks equal to the common stock on liquidation and pays no dividend.

 

As of December 31, 2015, there were 1,500,000 Class A preferred shares outstanding.

 

On February 25, 2016, the Company issued 2,000,000 Class A preferred shares. On April 26, 2016 the Company issued 1,500,000 Class A preferred shares. The fair value of the shares was based on the price quoted on the OTC pink sheets on the grant date for the common shares as the preferred shares have a preference of a 1 to 1 conversion to common stock. The Company recognized compensation expense to its officers.

 

In April 2017, with the agreement of the executive of the Company's previous management, the Company cancelled 1,500,000 Class A Preferred Shares that had been previously issued to him in 2015.

 

As of September 30, 2017, there are 3,500,000 Class A Preferred shares outstanding.

 

The Company is currently authorized to issue 5,000,000 Class B Preferred Shares, $0.001 per value. Each share of Series B Preferred Stock has a 1:100 voting right and is convertible into 100 shares of common stock. No dividends will be paid and in the event of liquidation all shares of Series B will automatically convert into common stock. There are no shares of Series B Preferred Stock issued and outstanding.

 

The Company is currently authorized to issue 5,000,000 Class C Preferred Shares, $0.001 per value. Each share of Series C Preferred Stock has a 1:50 voting right and is convertible into 50 shares of common stock. No dividends will be paid and in the event of liquidation all shares of Series B will automatically convert into common stock. There are no shares of Series C Preferred Stock issued and outstanding.