Business
Sack Lunch Productions Settles $1.05M Debt
Sack Lunch Productions Settles $1.05M Debt.
About this update from Sack Lunch Productions, Inc.
[{"type":"text","content":"\n \n \n Sack Lunch Productions Settles $1.05M Debt\n \n \nSack Lunch Productions Settles $1.05M Debt\n \n SALT LAKE CITY, UT--(Marketwired - Dec 29, 2015) - Sack Lunch Productions, Inc. (OTC PINK: SAKL) entered into a Settlement Agreement that eliminated a current liability of $1,051,387 through the issuance of restricted common stock. The Settlement Agreement was an integral part of the Acquisition Agreement which increased SAKL's ownership in all Slide the City entities and The Lantern Fest, LLC from 66.6% to 100%. \n The Settlement Agreement coupled with long term executive employment agreements eliminated profit sharing employment agreements with two of the founders of Slide the City and The Lantern Fest.\n Pursuant to the terms of the Settlement Agreement, 13,142,337 shares of SAKL's restricted common stock were issued to each of the three founders of STC and TLF and Mr. Surber. The shares are restricted as well as subject to a Lock-Up Agreement. Each of the founders are deemed affiliates of SAKL as a result of the above discussed series of transactions.\n The ability of affiliates to resell shares pursuant to Rule 144 is not available to affiliates of SAKL until such time as a Form 10 has been filed and effective for 12 months. The shares upon conclusion of the Lock-Up Agreement could be sold pursuant to Rule 144 at a rate of 1% of the total issued and outstanding shares of SAKL every 90 days provided SAKL is fully reporting, otherwise they may not be resold into the public markets.\n Richard Surber, CEO commented, \"Retaining the founders of our event companies, acquiring the remaining 33.3% of the Slide the City entities and The Lantern Fest as well as settling over $1M in debt prior to year-end is a strategic move designed to further strengthen SAKL's financial position. The most recent transactions will improve available cash, conserve cash flows, improve efficiencies, improve the balance sheet and help ensure the retention of our event management team in a fashion designed to align their interests with SAKL' long term operational and stock performance.\"\n Mr. Surber continued, \"Retaining a solid management team is the hallmark of all successful companies. I believe the long term retention of the founders is key to continuing our aggressive growth through expansion. Our expansion plans ...