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): February 3, 2021

 

OMNIA WELLNESS INC.

(Exact Name of Registrant as Specified in Charter)

 

Nevada   333-211986   98-1291924

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

999 18th Street

Suite 3000

Denver, Colorado 80202

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code: (303) 325-3738

 

 

(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 (see General Instruction A.2. below):

 

[  ] 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))

 

Securities Registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
N/A   N/A   N/A

 

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 [X]  

 

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 1.01 Entry Into A Material Agreement.

 

On February 3, 2021, Omnia Wellness Inc. (the “Company”) entered into an Extension to Promissory Note (the “Extension”), effective as of January 31, 2021, with an existing lender (the “Lender”), which extended the maturity date of the loan with the Lender in the principal amount of $500,000 (the “Existing Loan”) to January 31, 2022. The Extension also provided that the Lender can demand a one-time early repayment of the Existing Loan at any time prior to the Maturity Date.

 

As consideration for the Extension, the Company agreed to issue to the Lender 20,000 shares of its common stock (the “Consideration Shares”).

 

The foregoing is a brief description of the terms of the Extension and is qualified in its entirety by reference to the full text of the Extension, the form of which is included as Exhibit 10.1 to this Current Report on Form 8-K, which is incorporated herein by reference.

 

The information set forth in Item 2.03 is incorporated by reference into this Item 1.01.

 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

 

On February 8, 2021, the Company borrowed $140,000 (the “Loan”) from a new investor (the “Investor”) pursuant to a 20% Note due on May 31st, 2021, with an issue date of February 2, 2021 (the “Note”).

 

The Company intends to use the net proceeds from the Loan for the Company’s working capital and general corporate purposes.

 

The Note contains customary events of default, which, if uncured, entitle the Investor to accelerate the due date of the unpaid principal amount of the Note, and the outstanding balance shall increase to 120% of the outstanding balance immediately prior to the event of default.

 

Nickolay Kukekov, a director of the Company, has agreed to personally guarantee the payments of all amounts under the Note.

 

The foregoing is a brief description of the terms of the Note and is qualified in its entirety by reference to the full text of the Note, the form of which is included as Exhibit 10.2 to this Current Report on Form 8-K, which is incorporated herein by reference.

 

Item 3.02 Unregistered Sales of Equity Securities

 

On February 9, 2021, the Company issued the Consideration Shares. Additionally, the Company issued on February 9, 2021 an additional 177,650 shares of common stock to an existing investor upon the conversion of such investor’s loan to the Company of approximately $320,000 in principal plus accrued interest. All of such shares were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, as no general solicitation was used in the offer and sale of such securities.

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit   Description
10.1   Extension to Promissory Note
10.2   Convertible Promissory Note

 

     
     

 

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 thereunto duly authorized.

 

Date: February 9, 2021

 

  OMNIA WELLNESS INC.
     
  By: /s/ Steve Howe
  Name: Steve Howe
  Title: Executive Chairman

 

     

 

 

 

Exhibit 10.1

 

EXTENSION TO PROMISSORY NOTE

 

This EXTENSION TO PROMISSORY NOTE (this “Amendment”) is made effective as of January 31, 2021 by Omnia Wellness Inc., a Nevada corporation (as successor to the obligations of Omnia Wellness Corporation, a Texas corporation (f/k/a Bed Therapies, Inc., as converted from Bed Therapies, LLC, the “Company”), and Barry Pressman, who is the holder of the Promissory Note referred to below (the “Lender”).

 

RECITALS

 

A predecessor in interest to the Company and the Lender entered into a promissory note on or about July 31, 2018 (as amended, the “Promissory Note”)

 

The Company and the Lender wish to amend the Promissory Note, as amended to date, pursuant to the terms and conditions of this Amendment.

 

AGREEMENT

 

1. MATURITY DATE. The second paragraph of the Promissory Note is hereby amended by replacing the date therein as the Maturity Date with January 31, 2022. Section l of the Promissory Note is hereby amended by replacing “Maturity Date, January 31st, 2021” with “Maturity Date, which is January 31st, 2022”.
   
2. INTEREST. Section 2 of the Promissory Note is hereby deleted in its entirety and replaced with:

 

“Interest on this Note shall commence accruing on the Issuance Date and shall accrue daily at the Interest Rate of 14% per annum on the outstanding Principal amount and should be paid monthly. The loan will be in effect until the due date of January 31, 2022. At the option of the Lender, the interest may be paid in the form of any equity or equity linked instrument being sold in an open offering by the Company at the time the interest payment is due.”

 

3. EARLY PAYOUT DATE. A new Section 11 of the Promissory Note is hereby added as follows:

 

“11. Early Payout Date. The Lender can demand a one-time early repayment of the Note and accrued interest thereon at any time prior to the Maturity Date by providing the Company with fifteen (15) days prior written notice. Given the proper notice, the Company will comply.”

 

4. NO ADDITIONAL AMENDMENTS. Except for the stated amendments and replacements in Sections 1 – 3 of this Amendment, all other terms and conditions of the Promissory Note remain in full force and effect.
   
5. EXTENSION FEE. The Company agrees to issue Lender 20,000 shares of its common stock, as consideration for this Amendment.
   
6. NOTICE TO TRANSFEREES. The terms of this Amendment shall be binding upon and shall inure to the benefit of the parties hereto and any successors or permitted assigns of the Company and the Lender. Any successor, permitted assign or permitted transferee of the Promissory Note after the date hereof shall be deemed to have acquired the Promissory Note as amended by this Amendment.
   
7. CONSTRUCTION. Unless otherwise defined herein, capitalized terms shall have the meanings set forth in the Promissory Note. The terms of this Amendment amend and modify the Promissory Note as if fully set forth. If there is any conflict between the terms, conditions and obligations of this Amendment and the Promissory Note, this Amendment’s terms, conditions and obligations shall control. All other provisions of the Promissory Note not specifically modified by this Amendment are preserved.

 

[Remainder of Page Intentionally Left Blank; Signature Page in Counterparts Follows]

 

NOTE EXTENSION JANUARY 31, 2021

     

 

IN WITNESS HEREOF, this Amendment is made effective as of the date first set forth above.

 

  THE COMPANY:
   
  Omnia Wellness Inc.,
     
  By: /s/ Steve R. Howe
  Name: Steve R. Howe
  Title: Executive Chairman
     
  THE LENDER:
   
  /s/ Barry Pressman
  Barry Pressman

 

NOTE EXTENSION JANUARY 31, 2021

 

 

Exhibit 10.2

 

NOTE NUMBER______________

 

THIS PROMISSORY NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), APPLICABLE STATE SECURITIES LAWS, OR APPLICABLE LAWS OF ANY FOREIGN JURISDICTION. THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND IN THE ABSENCE OF COMPLIANCE WITH APPLICABLE LAWS OF ANY FOREIGN JURISDICTION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED AND SUCH FOREIGN JURISDICTION LAWS HAVE BEEN SATISFIED.

 

20% NOTE DUE ON MAY 31st, 2021

 

$ 140,000.00   Issue Date: 2/2/2021

 

FOR VALUE RECEIVED, Omnia Wellness, Inc., a Nevada corporation, (“Borrower”), hereby promises to pay to the order of James Besser (“Lender”), in lawful money of the United States of America and in immediately available funds, the principal amount of one hundred and forty thousand dollars ($140,000), plus interest on the outstanding principal amount accruing at the rate of Twenty percent (20%) per annum (subject to adjustment as described below). Interest and the accrued principal of the Note, shall be re-paid in full May 31st, 2021.

 

1. Payment.

 

1.1 Principal and Interest. Interest on the principal amount shall begin accruing on the date hereof, with an interest payment due at the maturity date. The principal and accrued interest on this Note shall become due and payable on the six (6) month anniversary of the Issue Date, unless sooner paid in full (the “Maturity Date”). All amounts payable hereunder shall be paid to Lender at the address specified in writing by Lender.

 

1.2 Prepayment. Borrower will have the right to prepay this Note at any time prior to the Maturity Date after providing Lender with at least fifteen (15) days’ prior written notice of its intention to prepay this Note.

 

2. Default.

 

2.1 Each of the following events shall be an “Event of Default” hereunder:

 

(a) the Borrower files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing;

 

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(b) an involuntary petition is filed against the Borrower under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Borrower; the Borrower executes an assignment with respect to substantially all of its assets;

 

(c) the Borrower fails to pay, upon demand made by Lender at any time after the Maturity Date, any and all unpaid principal, accrued interest and other amounts owing hereunder; and

 

(d) Borrower breaches any warranty or agreement in any material respect made by Borrower in this Note (except as set forth in (c) above) and fails to cure such breach within fifteen (15) days of the Borrower receiving written notice of such breach from Lender.

 

2.2 Upon the occurrence of any Event of Default (without the need for any party to give any notice or take any other action), the outstanding balance shall immediately and automatically increase to 120% of the outstanding balance immediately prior to the occurrence of the Event of Default. Upon the occurrence of any Event of Default, the Note shall become immediately due and payable and the Borrower shall pay to the Lender, in full satisfaction of its obligations hereunder, an amount equal to the outstanding balance, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

3. Governing Law. This Note shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

 

4. Amendment and Waiver. Any term of this Note may be amended or waived only with a written consent signed by Borrower and Lender.

 

5. Transfer of Note. The Company may not assign this Note. This Note will be binding upon the Company and its successors and will inure to the benefit of the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing without Company’s approval.

 

6. Successors and Assigns. The provisions of this Note shall inure to the benefit of and be binding on any successor to Borrower and shall extend to any holder hereof.

 

7. Usury. In no event shall the interest rate or rates payable under this Note, plus any other amounts paid in connection herewith and therewith, exceed the highest rate permissible under applicable law. Borrower and Lender, in executing and delivering this Note, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Note, Borrower is and shall be liable only for the payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of any remaining obligations to the extent of such excess.

 

8. Unsecured. This Note is not secured by any assets of the Borrower.

 

9. No Dilution or Impairment. Borrower shall not, by amendment of its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, but shall at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of Lender against dilution or impairment.

 

10. Attorney’s Fees. If the indebtedness represented by this Note or any part thereof is collected in bankruptcy, receivership or other judicial proceeding or if this Note is placed in the hands of attorneys for collection after default, then Borrower agrees to pay, in addition to the principal and interest payable hereunder, reasonable attorneys’ fees and costs incurred by Lender related to or arising from such collection.

 

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IN WITNESS WHEREOF, Borrower has executed this Note in favor of Lender as of the date first written above.

 

  BORROWER
   
  Omnia Wellness, Inc.
     
  By: /s/ Steve R. Howe
  Name: Steve R. Howe
  Title: Executive Chairman

 

In addition to Borrower’s obligations under this Note, the payment of all amounts due under this Note is personally guaranteed by Nickolay Kukekov, as per the Guaranty attached hereto as Exhibit A.

 

/s/ Nickolay Kukekov  
Name: Nickolay Kukekov  
Title: Director and as an individual  

 

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