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

Date of Report (Date of earliest event reported)  August 17, 2017

 
APPCOIN INNOVATIONS INC.
(Exact name of registrant as specified in its charter)

Nevada
 
000-55049
 
N/A
(State or other jurisdiction
 
(Commission
 
(IRS Employer
of incorporation)
 
File Number)
 
Identification No.)

3250 Oakland Hills Court, Fairfield, CA  94534
(Address of principal executive offices and Zip Code)

Registrant’s telephone number, including area code: 707.208.6368

REDSTONE LITERARY AGENTS, INC.
(Former name or former address, if changed since last report)

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))

 

 
Item 1.01  Entry into a Material Definitive Agreement
 
On August 1, 2017, we incorporated a Nevada subsidiary, AppCoin Innovations (USA) Inc., which we use to operate our new business of providing services for blockchain initial coin offerings.
 
In connection with our new business, we have appointed Cameron Chell as the president and a director of our company pursuant to a consulting agreement, dated August 21, 2017.  As compensation for acting as our president and chief executive officer, we have agreed to pay a signing bonus of $100,000, payable as to $50,000 within 30 days and $50,000 within 60 days, and a consulting fee in the amount of $10,000 per month.  Subject to compliance with all applicable securities laws, we will also grant to Mr. Chell stock options in an amount to be determined by our board of directors.  The agreement continue for twelve (12) months terms which will automatically be renewed unless our company provides 30 days prior written notice of its intention to not renew the agreement. The agreement may be terminated by (i) the Mr., Chell by providing at least 60 days advance notice in writing, (ii) our company by giving at least 30 days advance notice in writing, or (iii) our company without notice in the event that Mr. Chell: (i) breaches any term of the agreement, (ii) neglects the services or any other duty to be performed under the agreement, (iii) engages in any conduct which is dishonest, or damages the reputation or standing of our company, (iv) is convicted of any criminal act, (v) engages in any act of moral turpitude, (vi) files a voluntary petition in bankruptcy, or (vii) is adjudicated as bankrupt or insolvent.  Mr. Chell has also agreed for the term of the agreement not to compete with our company in the business of providing services for blockchain initial coin offerings.  During the term of the agreement and for a period of one (1) year immediately following the termination or expiration of the agreement, Mr. Chell has agreed not to solicit or induce any customer, prospective customer, supplier, sales personnel, employee or independent contractor involved with our company to terminate or breach any employment, contractual or other relationship with our company, or to otherwise discontinue or alter such third party’s relationship with our company.
 
Also in connection with our new business, on August 21, 2017, and pursuant to a transfer agreement dated for reference August 21, 2017, James P. Geiskopf, our sole director and officer, sold to Blockchain Fund GP Inc., 2,000,000 shares of our common stock for total consideration of $5,000.  Cameron Chell holds a 5.6% interest in Blockchain Fund GP Inc.
 
Our new business is a services and development business that provides a turnkey set of services for companies to develop and integrate blockchain and cryptocurrency technologies with a view to conducting initial coin offerings.  We enable companies to focus on their core competencies while providing the necessary resources and expertise to execute a strategy that will enable companies to integrate new blockchain plus cryptocurrency technologies and execute initial coin offerings. Our plan is to be partially compensated by these companies by receiving tokens or coins in the initial coin offerings.  This will allow our shareholders to indirectly participate in multiple initial coin offerings without having to open new accounts or electronic wallets with cryptocurrency exchanges.
 
Our services will include strategic planning, project planning, structure development and administration, campaign management, business plan modelling, technology development support, whitepaper preparation, due diligence reporting, escrow management, governance planning & management.,
 
Blockchain is a continuously growing list of records called blocks, which are linked and secured using cryptography. Each block contains typically a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. Functionally, a blockchain can serve as an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks and a collusion of the network majority.
 
2

 
Blockchains are secure by design and are an example of a distributed computing system and decentralization can be achieved with a blockchain. This makes blockchains potentially suitable for the recording of events, medical records and other records management activities, such as identity management, documenting provenance, digital asset registration and transaction processing. 
 
Initial coin offerings are an important new finance structure that enable companies to finance their business plans or projects without issuing equity (and diluting ownership) but rather by facilitating investment by a community of users or supporters that will actually be participating in the project and creating the value. By having a structured stake in the company or project, the investors are incentivized to increase the project’s value thereby driving the value of the crypto currency issued in the initial coin offering.
 
Cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. 
 
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
 
On August 21, 2017, we appointed Cameron Chell as the president, chief executive officer and a director of our company.  On the same date, James P. Geiskopf resigned as the president of our company.  Mr. Geiskopf remains as the secretary, treasurer and a director of our company.
 
Cameron Chell
 
Cameron Chell is the CEO of Business Instincts Group. He has built several startups, including Draganfly, RaptorRig, ColdBore, as well as being the Founder of Futurelink, the original cloud computing company. He is also the Co-Founder of UrtheCast, the first commercial video platform from space and Slyce, the visual purchasing engine.  Mr. Chell is currently involved with creating and sourcing new projects, and overseeing corporate development for Business Instincts Group. Business Instincts Group is a venture creation and management services company that integrates a proprietary strategic planning process (The RIPKIT) into organizations fostering strategic growth, valuation appreciation, liquidity, and management accountability. His primary responsibility is to provide project and strategic management facilitation while working with his co-founders, executives, and investors to determine what is most important and specifically how to get it done.
 
Family Relationships
 
No family relationships exist between any of our directors or executive officers.
 
Certain Related Transactions and Relationships
 
We have not been party to any transaction with Mr. Chell and Geiskopf since January 1, 2016, or any currently proposed transaction with Messrs. Chell and Geiskopf in which we were or will be a participant and where the amount involved exceeds $349.60, being the lesser of $120,000 or one percent of the average of our total assets at yearend for the last two completed fiscal years, and in which Messrs. Chell and Geiskopf had or will have a direct or indirect material interest. .
 
3

 
I tem 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
 
Effective August 17, 2017, we completed a merger with our wholly-owned subsidiary, AppCoin Innovations Inc., a Nevada corporation, which was incorporated solely to effect a change in our name.  As a result, we have changed our name from “Redstone Literary Agents, Inc.” to “AppCoin Innovations Inc.”.
 
Item 7.01 Regulation FD Disclosure
 
The name change became effective with the Over-the-Counter Bulletin Board at opening for trading on August 17, 2017 under the stock symbol “APCN”.  Our new CUSIP number is 03780Q102.
 
Item 9.01 Financing Statements and Exhibits
 
(d) Exhibits
 
3.1   Articles of Merger dated effective August 17, 2017.
10.1 Transfer Agreement dated August 21, 2017 with Blockchain Fund GP Inc.
 
SIGNATURES
 
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.

APPCOIN INNOVATIONS INC.


/s/ Cameron Chell
 
Cameron Chell
President and Director

August 23, 2017

4
Exhibit 3.1
 











 
Exhibit 10.1
 
TRANSFER AGREEMENT

BETWEEN:

JAMES GEISKOPF, 3250 Oakland Hills Court, Fairfield, CA  94534

(the Seller )

AND:

BLOCKCHAIN FUND GP INC., L120 2303 – 4 th Street SW,
Calgary, AB T2S 2S7

 (the Purchaser )

WHEREAS:

A. The Seller is the beneficial owner of 3,000,000 common shares in the capital of AppCoin Innovations Inc. (the Company ); and

B. The Seller has agreed to transfer to the Purchaser an aggregate of 2,000,000 common shares of the Company (the Shares ) owned by the Seller on the terms and conditions hereinafter set forth in this Agreement.

THEREFORE in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties covenant and agree as follows:

1. Purchase and Sale

1.1 On the basis of the representations and warranties of the parties to this Agreement and subject to the terms and conditions of this Agreement, the Seller agrees to transfer the Shares to the Purchaser for an aggregate purchase price of   US$5,000.00 (the “ Purchase Price ”).

1.2 The closing of the transfer of the Shares (the “ Closing ”) will take place on such date as may be agreed to by the parties hereto (the “ Closing Date ”).

1.3 On the Closing Date:

(a)
the Seller will deliver to the Purchaser, the following documents:

(i)
share certificates representing the Shares registered in the name of the Purchaser, and
 

 

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(ii)
all other documents and instruments as the Purchaser may reasonably require; and

(b)
the Purchaser will deliver to the Seller a cheque for the Purchase Price.

2. Representations and Warranties

2.1 The Seller represents and warrants to the Purchaser (which representations and warranties shall survive the closing of the transactions contemplated in this Agreement), with the intent that the Purchaser will rely thereon in entering into this Agreement and in concluding the transfer of the Shares as contemplated herein, that:

(a)
the Seller is the beneficial and registered owner of the Shares free and clear of all liens, charges and encumbrances of any kind whatsoever;

(b)
there are no written instruments, buy-sell agreements, registration rights or agreements, voting agreements or other agreements by and between or among the Seller or any other person, imposing any restrictions upon the transfer, prohibiting the transfer of or otherwise pertaining to the Shares or the ownership thereof;

(c)
the Seller has the power and capacity and good and sufficient right and authority to enter into this Agreement on the terms and conditions set forth in this Agreement and to transfer the legal and beneficial title and ownership of the Shares to the Purchaser;

(d)
no person, firm, corporation or entity of any kind has or will have any agreement or option or any right capable at any time of becoming an agreement to:

(i)
purchase or otherwise acquire the Shares; or

(ii)
require the Seller to sell, transfer, assign, pledge, charge, mortgage or in any other way dispose of or encumber any of the Shares other than under this Agreement;

(e)
this Agreement and all other documents required to be executed and delivered by the Seller have been duly, or will when executed and delivered be duly, executed and delivered by the Seller, and constitute the legal, valid and binding obligations of the Seller, enforceable against the Seller in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors, specific performance, injunctive relief and other equitable remedies;

(f)
the Seller has not taken any action which would impose any obligation or liability to any person for finder’s fees, agent’s commissions or like payments in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby;


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(g)
the Seller acquired the Shares in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933 (the “ 1933 Act ”) either (i) pursuant to Section 4(a)(1) of the 1933 Act, or (ii) pursuant to Section 4(a)(2) of the 1933 Act in the event that the Seller is deemed an underwriter; and

(h)
the Seller is not an "underwriter" (as such term is defined in Section 2(11) of the 1933 Act) of any securities of the Company.

2.2 The Purchaser represents and warrants to the Seller (which representations and warranties shall survive the closing of the transactions contemplated in this Agreement), with the intent that the Seller will rely thereon in entering into this Agreement and in concluding the transfer of the Shares as contemplated herein, that:

(a)
the Purchaser is acquiring the Shares as principal for investment only;

(b)
the Purchaser has the power and capacity and good and sufficient right and authority to enter into this Agreement on the terms and conditions set forth in this Agreement;

(c)
this Agreement and all other documents required to be executed and delivered by the Purchaser have been duly, or will when executed and delivered be duly, executed and delivered by the Purchaser, and constitute the legal, valid and binding obligations of the Purchaser, enforceable against the Purchaser in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors, specific performance, injunctive relief and other equitable remedies;

(d)
the Purchaser has not taken any action which would impose any obligation or liability to any person for finder’s fees, agent’s commissions or like payments in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby;

(e)
the sale of the Shares to the Purchaser as contemplated in this Agreement complies with or is exempt from the applicable securities legislation of the jurisdiction of residence of the Purchaser;

(f)
the Purchaser has had access to all of the books and records of the Company and accordingly agrees that it is familiar with and has access to information regarding the Company similar to information that would be available in a registration statement filed by the Company under the 1933 Act;

(g)
the Purchaser is acquiring the Shares as principal for the Purchaser’s own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Shares;


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(h)
the Purchaser (i) has adequate net worth and means of providing for the Purchaser’s current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Shares for an indefinite period of time;

(i)
the Purchaser understands and agrees that the Shares are being offered only in a transaction not involving any public offering within the meaning of the 1933 Act; and

(j)
the Purchaser is not acquiring the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

2.3 The Purchaser agrees to deliver, along with an executed copy of this Agreement:

(a)
a fully completed and executed Investor Questionnaire in the form attached as Exhibit 1 hereto; and

(b)
such other supporting documentation that the Seller or its legal counsel may request to establish the Purchaser’s qualification as a qualified purchaser.

3. Legending and Registration of Subject Shares

3.1 The Purchaser hereby acknowledges that a legend may be placed on the certificates representing the Shares to the effect that the Shares represented by such certificates are subject to transfer restrictions.

4. Entire Agreement

4.1 There are no representations, warranties, collateral agreements, or conditions except as herein specified.

5. Expenses

5.1 Each party to this Agreement will be responsible for all of its own expenses, legal and other professional fees, disbursements, and all other costs incurred in connection with the negotiation, preparation, execution, and delivery of this Agreement and all documents and instruments relating hereto and the consummation of the transactions contemplated hereby.

6. Proper Law

6.1 This Agreement will be governed by and construed in accordance with the law of British Columbia.


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7. Further Assurances

7.1 The parties to this Agreement hereby agree to execute and deliver all such further documents and instruments and do all acts and things as may be necessary or convenient to carry out the full intent and meaning of and to effect the transactions contemplated by this Agreement.

8. Electronic Means

8.1 Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date set forth on page one of this Agreement.

9. Counterparts

9.1 This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.

IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the 21st day of August, 2017.

 

EXECUTED by JAMES GEISKOPF in the presence of:

                                                                              
Signature
                                                                              
Print Name
                                                                              
Address

                                                                              
                                                                              
Occupation
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)





“James Geiskopf”                                                                   
JAMES GEISKOPF
 

BLOCKCHAIN FUND GP INC.

Per:
 

 
“Cameron Chell”
 
Name: Cameron Chell
 
Tile: Director
 
 


 
EXHIBIT 1
 
QUESTIONNAIRE
 
All capitalized terms herein, unless otherwise defined, have the meanings ascribed thereto in the Transfer Agreement.
 
The Purchaser covenants, represents and warrants to the Seller that:
 
1.
the Purchaser has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the transactions detailed in the Transfer Agreement and the Purchaser is able to bear the economic risk of loss arising from such transactions;
   2.
the Purchaser is (tick one or more of the following boxes) :
 
(A)   
a director, officer, employee, founder or control person of the Company or a director, officer or employee of an affiliate of the Company
 ☐
     
(B)   
a spouse, parent, grandparent, brother, sister, child or grandchild of a director, executive officer, founder or control person of the Company
 ☐
     
(C)   
a parent, grandparent, brother, sister, child or grandchild of the spouse of a director, executive officer, founder or control person of the Company
 ☐
     
(D)   
a close personal friend of a director, executive officer, founder or control person of the Company
 ☐
     
(E)   
a close business associate of a director, executive officer, founder or control person of the Company
 ☐
     
(F)   
a spouse, parent, grandparent, brother, sister, child or grandchild of the selling security holder or the selling security holder’s spouse
 ☐
     
(G)   
an accredited investor
 ☐
     
(H)   
a company, partnership or other entity of which a majority of the voting securities are beneficially owned by, or a majority of the directors are, persons described in paragraphs A to G
 ☐
     
(I)    
a trust or estate of which all of the beneficiaries or a majority of the trustees or executors are persons described in paragraphs A to G
 ☐
 
3.
if the Purchaser has checked box B, C, D, E, H or I in paragraph 2 above, the director, executive officer, founder or control person of the Company with whom the undersigned has the relationship is:
 


(Instructions to Purchaser: fill in the name of each director, executive officer, founder and control person which you have the above-mentioned relationship with.  If you have checked box H or I, also indicate which of A to G describes the security holders, directors, trustees or beneficiaries which qualify you as box H or I and provide the names of those individuals.  Please attach a separate page if necessary).
 


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4.
if the Purchaser has ticked box G in Section 2 above, the Purchaser satisfies one or more of the categories of "accredited investor" (as that term is defined in National Instrument 45-106) indicated below (please check the appropriate box):
 
(a) an individual who beneficially owns financial assets (as defined in National Instrument 45-106) having an aggregate realizable value that, before taxes but net of any related liabilities (as defined in National Instrument 45-106), exceeds CDN$5,000,000;
 
(b) an individual who, either alone or with a spouse, beneficially owns financial assets (as defined in National Instrument 45-106) having an aggregate realizable value that, before taxes but net of any related liabilities (as defined in National Instrument 45-106), exceeds CDN$1,000,000;
 
(c) an individual whose net income before taxes exceeded CDN$200,000 in each of the two more recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of those years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
 
(d) an individual who, either alone or with a spouse, has net assets of at least CDN $5,000,000; or
 
(e) a person, other than an individual or investment fund, that had net assets of at least CDN$5,000,000 as reflected on its most recently prepared financial statements.
 
IN WITNESS WHEREOF, the undersigned has executed this Questionnaire as of the 21st day of August, 2017.
 

If an Individual:
   
If a Corporation, Partnership or Other Entity:
 
         
         
Signature
   
Blockchain Fund GP Inc.
 
     
Print or Type Name of Entity
 
         
         
Print or Type Name
   
“Cameron Chell”
 
     
Signature of Authorized Signatory
 
         
         
     
Corporation
 
     
Type of Entity