UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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 reported): December 29, 2017

 

Novo Integrated Sciences, Inc.

(Exact name of small business issuer as specified in its charter)

 

Nevada   333-109118   59-3691650
(State or other jurisdiction   (Commission   (IRS Employer
of Incorporation)   File Number)   Identification Number)

 

11120 NE 2nd Street, Suite 200, Bellevue, WA 98004

(Address of principal executive offices)

 

(206) 617-9797

(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 (see General Instruction A.2.)

 

[  ] 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 CF$ 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On December 29, 2017, Novo Integrated Sciences, Inc. (the “Company”) entered into an employment agreement (the “Employment Agreement”) with Christopher David, the Company’s President and a member of the board of directors, effective January 1, 2018. The Employment Agreement terminates on July 30, 2018, subject to the termination provisions contained in the Employment Agreement.

 

Pursuant to the terms of the Employment Agreement, Mr. David agreed to serve as the Company’s President. In consideration thereof, the Company agreed to (i) pay Mr. David a monthly salary of $8,000, and (ii) grant Mr. David a 5-year option (the “Option”) to purchase 2,000,000 shares of the Company’s restricted common stock at an exercise price of $0.42 per share. The Option vested on December 29, 2017.

 

Pursuant to the terms of the Employment Agreement, the Company may terminate Mr. David at any time, with or without Cause (as defined below); provided, however, that if the Company terminates Mr. David without Cause:

 

  (a) The Option shall be deemed fully vested effective as of December 29, 2017, and is not subject to revocation or return, and
     
  (b) The Company will continue to owe Mr. David his monthly salary through July 30, 2018.

 

“Cause” means Mr. David must have (i) been willful, gross or persistent in his inattention to his duties or he committed acts which constitute willful or gross misconduct and, after written notice of the same, has been given the opportunity to cure the same within 30 days after such notice, and (ii) been found guilty of having committed a fraud against the Company.

 

On December 29, 2017, the Company granted the Option to Mr. David pursuant to that certain Option to Purchase Common Stock (the “Option Agreement”). The Option Agreement provides for the cashless exercise of all or a portion of the Option, or exercise through payment of the exercise price in cash.

 

The foregoing description of the Employment Agreement and the Option Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Employment Agreement and the Option Agreement, copies of which are filed as Exhibits 10.1 and 10.2, respectively, to this current report on Form 8-K, each of which is incorporated herein by reference.

 

Item 7.01. Regulation FD Disclosure.

 

On January 3, 2018, the Company issued a press release announcing that it had entered into a binding letter of intent to acquire 60% of all outstanding shares of Brands International Corporation (“Brands”), pursuant to which the Company agreed to acquire 60% of the issued and outstanding shares of Brands in exchange for the arrangement of secured debt financing in the amount of CAD$2,350,000 (approximately $1,873,256 per the Bank of Canada posted exchange rate of 0.7977 on December 29, 2017) arranged or provided by the Company. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this Current Report on Form 8-K.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description
     
10.1   Employment Agreement, entered into on December 29, 2017 and effective January 1, 2018, between the registrant and Christopher David.
10.2   Option to Purchase Common Stock dated December 29, 2017.
99.1   Press release dated January 3, 2017.

 

 

 

 

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.

 

  Novo Integrated Sciences, Inc.
     
Dated: January 3, 2018 By: /s/ Christopher David
    Christopher David
    President

 

 

 

 

 

EMPLOYMENT AGREEMENT

 

This SEVEN (7) MONTH EMPLOYMENT AGREEMENT (the “Agreement”) is entered into this 29th day of DECEMBER, 2017 , between NOVO INTEGRATED SCIENCES, INC ., a Nevada Corporation (the “Company”) located at 11120 NE 2 nd Street, Suite 200, Bellevue, Washington 98004, and CHRISTOPHER DAVID, an individual residing in Washington State, currently acting as the Companies’ President and Director (the “Executive”).

 

RECITALS

 

A. The Company is a Nevada, small-reporting corporation, that develops and provides both products and services in the healthcare and medical cannabis sector.

 

B. The Executive is an individual who has knowledge and abilities useful to the Company and who is currently serving the Company as its President and Director.

 

C. The Company desires to provide certain compensation to Mr. David for services to be performed by Mr. David, as President of the Company, which allows Mr. David to remain fulfilling the roles and responsibilities as the company’s President, a position he has filled for the Company since May 10, 2015.

 

D. This seven (7) month Employment Agreement replaces the previous six (6) month Employment Agreement, dated July 12, 2017 between the Company and Mr. David with all terms and conditions of the July 12, 2017 six (6) month Employment Agreement having been met and Mr. David’s relationship with the Company being in good standing.

 

NOW , THEREFORE , in consideration of the mutual promises between the parties, the parties agree as follows:

 

1. Recitals. The recitals as stated in the preamble are true and correct and incorporated herein by reference.

 

2. Term of Agreement. This Agreement shall be effective as of January 1, 2018 and shall continue until July 30, 2018 (“Termination Date”), subject to the termination provisions contained in paragraph 6.

 

3. Duties. During the term of this Agreement, the Executive shall devote a sufficient amount of Executive’s time, skill, and experience to manage the Company as its President, which is both an Executive Management and a Corporate Officer position. The Executive shall have all the usual powers of a President. This Agreement is entered into solely for the purpose of providing specific compensation to Executive for the provision of future services to the Company for the period of the Term. The terms and conditions of Executive’s performance of his duties shall be subject to the Board’s supervision at all times and such terms are not addressed in this Agreement. The Parties shall maintain an open relationship with clear communication and clear determination of duties.

 

     

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4. Compensation. At commencement of the Term of this Agreement, the Company shall pay to Executive the following incentive compensation:

 

  (a) A monthly salary of US$8,000;
     
  (b) The Executive shall be granted a Five-year (5) option for the purchase of two million (2,000,000) shares of the Company’s restricted Rule 144 common stock at a per option price of forty-two cents (US$0.42) with a grant date of December 29, 2017, a vest date of December 29, 2017 and an expiration date of December 29, 2017 (5-years from grant date), without further action. In the event that the number of authorized shares is altered, pursuant to stock splits, initial public offerings, or other activity, all of the shares granted to the Executive hereunder shall be adjusted proportionately.

 

5. Executive Benefits. The Executive is entitled to such other Executive Benefits as shall be determined by the Board, from time to time.

 

6. Termination. The Compensation covered by this Agreement is for the Executive’s future services to the Company for the Term. This Agreement shall be terminated as of the end of the defined term, unless the parties renew the same in writing. The Company may terminate Executive at any time, with or without cause, provided however, if the Executive is terminated without cause:

 

  (a) the stock option compensation to be paid hereunder shall be deemed granted and fully vested at the time of this seven (7) month Employment Agreement and is not subject to revocation or return.
     
  (b) The monthly salary will still be owed to the Executive for the duration of the defined seven (7) month term, through July 30, 2018.

 

The term “cause” shall mean the Executive must have (i) been willful, gross or persistent in Executive’s inattention to Executive’s duties or the Executive committed acts which constitute willful or gross misconduct and, after written notice of the same has been given to the Executive and he has been given an opportunity to cure the same within thirty (30) days after such notice; or (ii) found guilty of having committed actual fraud against the Company.

 

7. Notice. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by certified mail to the Executive’s address listed below, unless written notice of a change of address has been provided to the Company:

 

Christopher David

______________

______________

 

     

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8. Miscellaneous. Failure of either party to assert any of its rights under this Agreement shall not constitute a waiver of its rights. The waiver by any party of a breach of any provisions of this Agreement shall not operate or be construed as a waiver of any subsequent breach by any party. This Agreement shall inure to the benefit of, and be binding on, the parties and their successors, heirs, personal representatives, and assigns. This instrument contains the entire agreement of the parties. It may not be changed orally but only by an agreement in writing signed by any party against whom enforcement of any waiver, change, modification, extension, or discharge is sought. If any provisions of this Agreement are declared invalid and unenforceable, the remainder of this Agreement shall continue in full force and effect. This Agreement shall be construed, interpreted, governed, and enforced in and under the laws of the state of Washington except as otherwise provided in this Agreement. Paragraph headings are inserted only for convenience and are not to be construed as part of this Agreement or a limitation of the scope of the particular paragraph to which they refer.

 

9. Attorneys’ Fees. In the event that either Party hereto commences litigation against the other to enforce such party’s rights hereunder, the prevailing party shall be entitled to recover all costs, expenses and fees, including reasonable attorneys’ fees (including in-house counsel), paralegals’, fees, and legal assistants’ fees through all appeals.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

 

“Company”   “Executive”
NOVO INTEGRATED SCIENCES, INC.   Christopher David
         
  /s/ Pierre Dalcourt     /s/ Christopher David
By: Pierre Dalcourt, Board Chairman   By: Christopher David

 

     

 

 

 

 

 

 

 

OPTION TO PURCHASE COMMON STOCK OF

TURBINE TRUCK ENGINES, INC.

 

On the 29th day of December, 2017 , NOVO INTEGRATED SCIENCES, INC. , a Nevada corporation (the “Company”) hereby grants, as of the date hereof, to Christopher David, an individual (hereinafter “Optionee”), upon the terms and conditions hereinafter set forth, an option to purchase up to TWO MILLION (2,000,000) shares of the Company’s common stock (the “Option”) at an exercise price of FORTY-TWO CENTS (US$0.42) .

 

This Option is granted, to Optionee, in accordance to the terms and conditions of the seven (7) month Employment Agreement, dated December 29, 2017, (effective January 1 through July 30, 2018) (the “Agreement”) with its current President, Christopher M. David, which provides for Mr. David to remain fulfilling the roles and responsibilities as the company’s President through July 30, 2018. This Option expires on the Expiration Date (hereinafter defined).

 

1. Exercise of Options.

 

(a) Subject to subsection (b) of this Section 1, this Option may be exercised, in whole or in part, upon presentation, to the Company at Turbine Truck Engines, Inc., Attention: CEO/President, 11120 NE 2 nd Street, Suite 200, Bellevue, Washington, 98004 or at such other address as the Company may designate as the Company’s principal corporate address; of (i) the attached Exercise Form (Exhibit A) duly executed and delivered notice to Optionee; together with (ii) either (x) a wire transfer, certified bank or cashier’s check payable to the order of Company in the amount of the Exercise Price or (y) the Optionee’s election to Net Exercise in accordance with the following formula:

 

Net Exercise Formula (Cashless) : The Holder may elect to receive Option Shares equal to the value of this Option (or the portion thereof being canceled) pursuant to a Net Exercise Formula whereby the Company shall issue to the Holder a number of Option Shares computed using the following formula:

 

 

Y (A-B)

X = ———————

A

 

 

  Where: X = the number of the Option Shares to be issued to the Holder.
         
    Y = the number of the Option Shares purchasable under this Warrant.
         
    A = the fair market value of one Share on the date of determination.
         
    B = the per share Exercise Price (as adjusted to the date of such calculation).

 

Fair Market Value. For purposes of this Section, the per share fair market value of the Option Shares shall mean the average of the closing prices of the Common Stock as quoted on the Over-the-Counter Bulletin Board, or the principal exchange on which the Common Stock is listed, in each case for the fifteen (15) trading days ending five (5) trading days prior to the date of determination of fair market value.

 

(b) Expiration Date . The Option to purchase the Company’s common stock must be exercised, in whole or in part, on or before the date which is five (5)-years from the date hereof, December 29, 2022, (the “Expiration Date”).

 

(c) The Option shall be exercisable at forty-two cents (US$0.42) (i.e. the “Exercise Price”).

 

 
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2. Vesting. This Option fully vest as of the date hereof (December 29, 2017).

 

3. Purchased and Underlying Common Stock.

 

(a) Upon receipt of an Exercise Form and payment of the Exercise Price (or Net Exercise election), the Company shall issue and cause to be delivered with all reasonable dispatch to Optionee, a certificate or certificates for the number of full shares of Common Stock comprising the applicable Common Stock so purchased upon the exercise of a vested Option (the “Purchased Common Stock”). Such certificate or certificates shall be deemed to have been issued, and any person named therein shall be deemed to have become a holder of record of such Common Stock, as of the date of receipt of the Exercise Form and payment of the Exercise Price (if required), notwithstanding that the certificates representing such Common Stock shall not actually have been delivered or that the transfer shall not have been reflected on the stock transfer books of Company.

 

(b) the Company shall at all times keep reserved so long as this Option remains outstanding, out of its authorized common stock, sufficient common stock as shall continue to be subject to purchase under this Option (the “Underlying Common Stock”).

 

4. Rights and Obligations of Optionee.

 

(a) Optionee or any subsequent holder of this Option shall not, by virtue hereof, be entitled to any rights of a shareholder in Company, either at law or in equity.

 

(b) Optionee or any subsequent holder of this Option, as such, shall not be entitled to vote or receive dividends or to be deemed the holder of the Common Stock for any purpose, nor shall anything contained in this Option Agreement, confer upon Optionee any of the rights of a shareholder of Company including, but not limited to, any right to vote, give or withhold consent to any action by Company, whether upon any reclassification of stock, consolidation, merger, share exchange, conveyance or otherwise, receive notice of meetings or other action affecting shareholders (except for the notices provided for herein), receive dividends, receive subscription rights, or any other right until this Option shall have been exercised and Optionee shall have become the record holder of the Common Stock, as provided herein.

 

(c) In the event that the number of authorized shares is altered, pursuant to stock splits, initial public offerings, or other activity, all of the shares granted to the Executive hereunder shall be adjusted proportionately.

 

5. Purchased Common Stock. The Company covenants and agrees that all Purchased Common Stock to be delivered upon proper exercise of this Option shall be recorded on the books of Company in the name of Optionee and shall be duly and validly authorized and issued, fully paid and non-assessable, and free from all preemptive rights, taxes (other than transfer taxes), liens, charges and security interests created by Company with respect to the issuance thereof.

 

6. Disposition of Options or Common Stock .

 

(a) Optionee and/or any transferee hereof or of the Purchased Common Stock by its acceptance hereof or thereof, hereby understands and agrees that neither this Option nor the Purchased Common Stock have been registered under U.S. Securities Act of 1933, as amended (the “Securities Act”) or applicable state securities laws (the “State Acts”) and shall not be sold, pledged, hypothecated, donated or otherwise transferred (whether or not for consideration) except upon the issuance to Company of a favorable opinion of counsel or submission to Company of such evidence as may be reasonably satisfactory to counsel to Company, in each such case, to the effect that any such transfer shall not be in violation of the Securities Act and/or the State Acts. It shall be a condition to the transfer of this Option that any transferee hereof deliver to Company its written agreement to accept and be bound by all of the representations, terms and conditions of this Option.

 

 
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(b) The stock certificates of Company that will evidence the Purchased Common Stock may be imprinted with a restrictive legend in substantially the following form:

 

THE SECURITIES EVIDENCED BY THIS OPTION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO ANY EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND UNDER APPLICABLE STATE LAW, THE AVAILABILITY OF WHICH MUST BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

 

Company has not agreed to register any of the Purchased Common Stock for distribution in accordance with the provisions of the Securities Act or the State Acts. Except as otherwise set forth herein, Company has not agreed to comply with any exemption from registration under the Securities Act or the State Acts for the resale of such Common Stock. Hence, it is the understanding of Optionee that by virtue of the provisions of certain rules respecting “restricted securities” promulgated by the U.S. Securities and Exchange Commission, all or part of the Purchased Common Stock may be required to be held indefinitely, unless and until registered under the Securities Act and the State Acts, or unless an exemption from such registration is available (in which case Optionee may still be limited as to the amount of such Common Stock that may be sold).

 

7. Representations.

 

(a) Risk Factors. Optionee understands and acknowledges that (i) this Option and the Purchased Common Stock are unregistered, restricted securities and are not readily marketable and (ii) there is a significant degree of risk in investing in the Common Stock. Optionee agrees that he must be able to bear the economic risk of the loss of the entire investment in the Common Stock if it exercises this Option.

 

(b) Knowledge and Experience; Financial Capability and Net Worth. Optionee has (i) such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of the investment in the Common Stock, (ii) has determined that such investment is suitable for Optionee in view of its financial circumstances and available investment opportunities; and (iii) no need for liquidity of the investment and no reason to anticipate any change in Optionee’s financial circumstances which may cause or require any sale, transfer or other distribution of the Purchased Common Stock.

 

(c) Information. Optionee agrees that it shall be its responsibility to request such information with respect to Company as it and its advisors deem appropriate to evaluate the risks and merits of investment in the Purchased Common Stock at the time that Optionee exercises this Option.

 

8. Remedies. The Company stipulates that the remedies at law of Optionee in the event of any default or threatened default by Company in the performance of or compliance with any of the terms of this Option are not and will not be adequate and that, without limiting any other remedy available at law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof. The rights and remedies of Optionee are cumulative and not exclusive of any rights or remedies which Optionee might otherwise have.

 

 
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9. Survival. The various rights and obligations of Optionee hereof as set forth herein shall survive the exercise of this Option at any time or from time to time and the surrender of this Option.

 

10. Change; Waiver. Neither this Option nor any term hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. No failure or delay of Optionee in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.

 

11. Governing law. The execution, effectiveness, construction, performance, amendment and termination of this Option and the resolution of disputes hereunder shall be governed under the laws of Nevada.

 

12. Confidentiality. The parties acknowledge that the existence and the terms of this Option and any oral or written information exchanged between the parties in connection with the preparation and performance this Option are regarded as confidential information. Each party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (a) is or will be in the public domain (other than through the receiving party's unauthorized disclosure); (b) is under the obligation to be disclosed pursuant to the applicable laws or regulations, rules of any stock exchange, or orders of the court or other government authorities; or (c) is required to be disclosed by any party to its shareholders, investors, legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such shareholders, investors, legal counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. This Section shall survive the termination of this Option for any reason.

 

13. Severability. In the event that one or several of the provisions of this Option are found to be invalid, illegal or unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Option shall not be affected or compromised in any respect. The parties shall strive in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law and the intentions of the parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

14. Successors. This Option shall be binding on and shall inure to the interest of the respective successors of the parties and the permitted assigns of such parties.

 

[Remainder of Page Intentionally Left Blank ]

 

 
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IN WITNESS WHEREOF , the parties hereto have executed this Option as of the date first above written.

 

Novo Integrated Sciences, Inc., a Nevada Corporation

 

By: /s/ Pierre Dalcourt   Date: December 29, 2017
  Dr. Pierre Dalcourt, Board Chairman      
         
By: /s/ Michael Gaynor   Date: December 29, 2017
  Michael Gaynor, Secretary-Treasurer      

 

[Remainder of Page Intentionally Left Blank ]

 

 
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CERTIFICATE

OF

OPTIONS

 

Certificate Number: #31   Options: 2,000,000

 

This Certifies that Christopher David, an individual, is the owner of TWO MILLION (1,000,000) Options of Novo Integrated Sciences, Inc., common shares fully paid and non-assessable, transferable only on the books of the Corporation in person or by Attorney upon surrender of this Certificate properly endorsed.

 

This Certificate is granted in accordance with the terms of the Option to purchase common stock of Novo Integrated Sciences, Inc., a Nevada corporation, dated December 29, 2017 . The Option fully vest on December 29, 2017 . The exercise price of these Options is forty-two cents (US$0.42) per Option. The Option expires on December 29, 2022 (5-years years from the grant date) and is exercisable, in whole or in part, at any-time from the vest date until the expiration date.

 

In Witness Whereof, the said Corporation has caused this certificate to be signed by its duly authorized officers and its Corporate Seal to be hereunto affixed this 29th Day of December A.D. 2017 .

 

[CORPORATE SEAL]

 

/s/ Pierre Dalcourt   /s/ Michael Gaynor
Dr. Pierre Dalcourt   Michael Gaynor
Board Chairman   Secretary, Treasurer, Director

 

 
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EXERCISE FORM

 

TO: NOVO INTEGRATED SCIENCES, INC.

Attention: CEO-President

11120 NE 2 nd Street, Suite 200

Bellevue, Washington 98004

 

The undersigned, being the lawful holder of the Option evidenced by the attached Option Agreement, elects to purchase __________________________________________________ shares the Common Stock of NOVO INTEGRATED SCIENCES, INC. , at an Exercise Price of forty-two cents (US$0.42) per option and elects either:

 

(a) [  ] Cash Exercise : the Holder hereby makes payment of U.S $____________ in payment of the purchase price thereof, which includes the Exercise Price in full, together with all applicable transfer taxes, if any; or
   
(b) [  ] Net Issue Exercise (Cashless) : The Holder elects to receive Option Shares equal to the value of this Option (or the portion thereof being canceled) whereby the Company shall issue to the Holder a number of Option Shares computed using the following formula:

 

 

Y (A-B)

X = ———————

A

 

 

  Where: X = the number of the Option Shares to be issued to the Holder.
         
    Y = the number of the Option Shares purchasable under this Warrant.
         
    A = the fair market value of one Share on the date of determination.
         
    B = the per share Exercise Price (as adjusted to the date of such calculation).

 

Fair Market Value. For purposes of this Section, the per share fair market value of the Option Shares shall mean the average of the closing prices of the Common Stock as quoted on the Over-the-Counter Bulletin Board, or the principal exchange on which the Common Stock is listed, in each case for the fifteen (15) trading days ending five (5) trading days prior to the date of determination of fair market value.

 

Signature: _______________________________________

 

Print Name: ______________________________________         Date: ______________________

 

Social Security Number: _______________________________________

 

Address: ________________________________________  
     
   ________________________________________  
     
   ________________________________________  

 

Phone No. _________________________________          Email: _________________________________

 

 
 

 

 

 

Novo Integrated Sciences, Inc. and Brands International Corporation Enter into Binding LOI

 

BELLEVUE, Wash., January 3, 2018 (GLOBE NEWSWIRE) – Novo Integrated Sciences, Inc. (OTCQB:NVOS) (“Novo Integrated Sciences”), a provider of multi-disciplinary primary healthcare services and products in Canada, announces it has entered into a Binding Letter of Intent (“LOI”) to acquire 60 percent of all outstanding shares of Brands International Inc. (“Brands”) in exchange for Novo Integrated Sciences arranging or providing secured debt financing of CAD$2,350,000 (the “Acquisition”) primarily targeted for certain Brands growth strategies. Additionally, the LOI provides that Novo Integrated Sciences will provide a buyout structure for Novo Integrated Sciences to acquire the remaining 40 percent of Brands’ shares with a trigger date of 24 months from the closing of the Acquisition.

 

Brands is a Canadian Board of Health licensed and FDA-registered manufacturer of health, beauty and household products. Brands manufactured private label and self-branded products are sold in both the U.S. and Canada through value retailers and high exposure vendors. The Acquisition is intended to include Brands’ proprietary formulas for anti-aging topical skin creams, which would allow Novo Integrated Sciences to launch its planned exclusive medical cannabis products platform to include cannabinoid (“CBD”) infused topical therapy product offerings.

 

Chris David, Novo Integrated Sciences’ President, stated, “We are grateful to the Brands management team and stockholders for all their hard work and commitment to understanding the value this significant acquisition offers both Brands and Novo Integrated Sciences. Adding Brands to our company’s portfolio of assets would fulfill a very important component of our business growth strategy. When considering CBD medical cannabis products, Novo Integrated Sciences has established relationships worldwide with low- cost grow and production entities which, when combined with having ownership and control of the end- product manufacturing process, allows us to provide high-quality, low-cost CBD medical cannabis products. Offering our patients access to non-hallucinogenic and non-addictive natural remedies, under required clinical oversight policies and procedures as they relate to medicinal cannabis and CBD, combined with our existing clinic-based treatment protocols allows us to enter this market segment with a unique integration model not readily available in the marketplace.”

 

Mark Rubinoff, President and founder of Brands, stated, “While Brands was founded in 2008, our family has been in the health and beauty product business for three generations, starting with my grandmother, Shura Chiro, who moved to Canada, from Bucharest, in 1948 to explore a world of new opportunities and develop her trade in beauty care and rejuvenation. I am proud to have built Brands primarily based on her vision from over 50 years ago. Our Brands team is excited to work with the Novo Integrated Science team to close this transaction, allowing both our companies to enact our growth strategies based on providing enhanced product and service capabilities through the blending of expertise and complimentary synergies.”

 

About Novo Integrated Sciences, Inc. and Novo Healthnet Limited

 

Our mission is to build a U.S. and Canadian based multi-disciplinary primary healthcare provider of high- quality specialized healthcare services and products through the integration of technology and medical science.

 

 

 

 

Effective May 9, 2017, Novo Integrated Sciences (formerly known as Turbine Truck Engines, Inc., an alternative-energy technology development enterprise) closed a Share Exchange Agreement with the shareholders of Novo Healthnet Limited (“NHL”), an Ontario province Canada corporation, making NHL a wholly-owned foreign subsidiary of Novo Integrated Sciences.

 

Through NHL, currently we provide specialized physiotherapy, chiropractic care, occupational therapy, eldercare, laser therapeutics, massage therapy, acupuncture, chiropodist, neurological functions, kinesiology and dental services to our clients. Our multi-disciplinary primary healthcare services and protocols are directed at assessment, treatment, management, rehabilitation and prevention through our 14 corporate owned clinics, 150 affiliate clinics, retirement homes, long-term care facilities and institutional locations throughout Canada. Directly and indirectly through our contractual relationships, we provide our specialized services to over 300,000 patients annually.

 

For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com. For more information on NHL, please visit www.novohealthnet.com. Also, any visit to www.ttengines.com will be re-directed to www.novointegrated.com. For more information on Brands International Corporation, please visit www.brandsicorp.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in Novo Integrated Sciences’ filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond Novo Integrated Sciences’ control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Novo Integrated Sciences’ current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Novo Integrated Sciences assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

 

The contents of any website referenced in this press release are not incorporated by reference herein.

 

Chris David

President

Novo Integrated Sciences, Inc.

cdavid@novointegrated.com

(206) 617-9797