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: April 9, 2021

 

ALTITUDE INTERNATIONAL HOLDINGS, INC.

(Exact name of Registrant as specified in its Charter)

 

New York   000-55639   13-3778988
(State or Other Jurisdiction of   (Commission File   (I.R.S. Employer
Incorporation)   Number)   Identification No.)

 

4500 SE Pine Valley Street, Port St. Lucie, FL 34952

(Address of Principal Executive Offices)

 

772-323-0625

(Registrant’s Telephone Number, including area code)

 

Copy to:

 

Brunson Chandler & Jones, PLLC

175 South Main Street, Suite 1410

Salt Lake City, Utah 84111

(801)303-5721

 

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 14-a-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 to Section 12(b) of the Act: None.

 

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 8.01. Other Events.

 

On April 9, 2021, Altitude International Holdings, Inc. (the “Company” or “Altitude”) entered into a Letter of Intent (the “LOI”) with Total Lifestyle Care, LLC, a privately-held Texas limited liability company doing business as Stemlyft (“Stemlyft”). The LOI sets forth the non-binding headline terms of a proposed Share Exchange of Altitude with Stemlyft through which 100% of the Stemlyft shares will be exchanged for 10,000,000 restricted shares of Altitude.

 

Upon the terms and subject to the conditions set forth in the LOI, following the Share Exchange, (i) Stemlyft will be a wholly-owned subsidiary of Altitude, operating as “Altitude Wellness”; (ii) Stemlyft agrees to fund expansion of the two additional Stemlyft facilities; (iii) Stemlyft agrees to fund the cost and creation of any franchise-related documents related to Stemlyft; and (ii) a negotiated percentage on medical revenues and the leasing of equipment shall be finalized between the parties.

 

The completion of the Share Exchange would be subject to the satisfaction of specific conditions set forth in the LOI, including the retirement of all Stemlyft debt, completion of due diligence, completion of an audit of Stemlyft, and the completion of certain improvements to the existing current Stemlyft location. These conditions may not ever be satisfied, the Company may never enter into a definitive Share Exchange Agreement with Stemlyft, the Share Exchange with Stemlyft may never be consummated, and even if it is, it may not be consummated on the terms described therein.

 

The foregoing description of the LOI does not purport to be complete and is qualified in its entirety by reference to the full text of the LOI, which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The LOI is included with this filing only to provide investors with information regarding the terms of the LOI, and not to provide investors with any factual information regarding Altitude or Stemlyft, their respective affiliates or their respective businesses. The LOI should not be read alone, but should instead be read in conjunction with the other information regarding Altitude, Stemlyft, their respective affiliates or their respective businesses, the LOI and the Share Exchange that will be contained in, or incorporated by reference into, the Current Report on Form 8-K that will include a copy of any definitive Share Exchange Agreement, as well as in the Forms 10-K, Forms 10-Q and other filings that Altitude makes with the Securities and Exchange Commission (“SEC”).

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.   Description of Exhibit
99.1   Letter of Intent, dated as of April 9, 2021, by and between Altitude International Holdings, Inc., and Total Lifestyle Care, LLC

 

 
 

 

Forward-Looking Statements

 

Certain of the matters discussed in this communication which are not statements of historical fact constitute forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “would,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements.

 

Important factors that may cause actual results and outcomes to differ materially from those contained in such forward-looking statements include, without limitation, the occurrence of any event, change or other circumstances that could give rise to the parties never entering into a definitive Share Exchange Agreement, the right of one or both of Altitude or Stemlyft to terminate the Share Exchange agreement even if entered into; the outcome of any legal proceedings that may be instituted against Altitude, Stemlyft or their respective directors; the ability to obtain regulatory approvals and meet other closing conditions to the Share Exchange on a timely basis or at all; the ability to obtain approval by Stemlyft stockholders on the expected schedule; difficulties and delays in integrating Altitude’s and Stemlyft’s businesses; prevailing economic, market, regulatory or business conditions, or changes in such conditions, negatively affecting the parties; risks that the transaction disrupts Altitude’s or Stemlyft’s current plans and operations; failing to fully realize anticipated cost savings and other anticipated benefits of the Share Exchange when expected or at all; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Share Exchange; the ability of Altitude or Stemlyft to retain and hire key personnel; the diversion of management’s attention from ongoing business operations; uncertainty as to the long-term value of the common stock of the combined company following the Share Exchange; the continued availability of capital and financing following the Share Exchange; the business, economic and political conditions in the markets in which Altitude and Stemlyft operate; and the fact that Altitude’s and Stemlyft’s reported earnings and financial position may be adversely affected by tax and other factors.

 

Other important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this communication are described in Altitude’s publicly filed reports, including, but not limited to, Altitude’s Annual Report on Form 10-K for the year ended December 31, 2020 and prior quarterly reports.

 

Altitude and Stemlyft caution that the foregoing list of important factors is not complete, and they do not undertake to update any forward-looking statements that either party may make except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altitude, Stemlyft or any person acting on behalf of either party are expressly qualified in their entirety by the cautionary statements referenced above.

 

No Offer or Solicitation

 

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 

 
 

 

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.

 

Date: April 12, 2021

 

  ALTITUDE INTERNATIONAL, INC.
     
  By: /s/ Greg Breunich         
  Name:  Greg Breunich
  Title: Chief Executive Officer

 

 

 

Exhibit 99.1

 

ALTITUDE INTERNATIONAL HOLDINGS, INC.

 

April 9, 2021

 

Total Lifestyle Care, LLC

3550 Rayford Ste. 110A

Spring, TX 77386

 

  Re: Share Exchange Between Altitude International Holdings Inc and Total Lifestyle Care, LLC

 

Dear Shareholders:

 

This letter is intended to express the general terms of the Share Exchange Agreement to be formalized between Altitude International Holdings Inc., a publicly-held New York corporation (“AIH”) and Total Lifestyle Care, LLC, a privately-held Texas limited liability company doing business as Stemlyft (“Stemlyft”). The objective of our discussions has been the execution and consummation, as soon as feasible, of a formal Agreement between the parties hereto (the “Share Exchange Agreement”) which, among other things, would provide for the various matters set forth below.

 

1. Share Exchange Agreement. The board of directors of AIH and the shareholders of Stemlyft have completed an initial evaluation of the business plan, financial statements and other relevant corporate documents of the other and have concluded that a Share Exchange between the companies through which 100% of Stemlyft shares will be exchanged for 10,000,000 shares of restricted common stock of AIH and would be in the best interest of both companies (the “Share Exchange”). In addition to the Shares delivered to Stemlyft’s members on a pro rata basis, It is the intent of the parties hereto that the proposed Share Exchange of Stemlyft into AIH be affected as a tax-free reorganization pursuant to Section 368(a)(1)(B) of the Internal Revenue Code and that Stemlyft will operate as a wholly-owned subsidiary of AIH.

 

2. Capitalization.

 

(a) AIH Capitalization. AIH’s total authorized capital consists of 600,000,000 shares of Common Stock, no par value per share and 5,000,000 shares of Preferred Stock, no par value per share. There are currently approximately 57,000,000 shares of common stock issued and outstanding and no shares Preferred Stock issued or outstanding. AIH anticipates that it will issue approximately 228,000,000 shares of common stock of the AIH in a separate acquisition prior to the Stemlyft acquisition, so at the time of the Stemlyft merger, there will likely be approximately 285,000,000 shares of common stock issued and outstanding in AIH.

 

(b) Stemlyft Capitalization. Stemlyft’s total authorized capital consists of 25% Michael Nguyen, 25% Minh Nguyen, 25% Michelle Nguyen and 25% Huong Le Nguyen of which Total Lifestyle Care, LLC will own 100% of the 10 million shares allocated to Total Lifestyle Care, LLC by AIH.

 

Upon acquisition, Total Lifestyle Care, LLC agrees to give LeNguyen FLP 65% of the 10 million shares and to give Veritas Comprehensive Health Inc. 10% of the 10 million shares ( 1 million shares ) and also agrees to sell an additional 25% of the 10 million shares allocated to Total Lifestyle Care, LLC by AIH to Veritas Comprehensive Health Inc. for $ 125,000.00.

 

 
 

 

3. Pre-Closing Conditions. As part of the material terms of the Share Exchange and as conditions precedent to closing the Share Exchange Agreement, the Parties shall undertake and complete the following actions (the “Undertakings”):

 

  (i) Stemlyft shall retire all debt in its entity prior to Closing.
  (ii) Stemlyft shall deliver to AIH a complete list of its assets and will provide a comprehensive capital expenditure and operating budget for its future 2 year operations.
  (iii) AHI shall complete its due diligence of Stemlyft to its full satisfaction and Stemlyft members agree to cooperate fully in the due diligence process and to provide any documents or information requested by AIH.
  (iv) Stemlyft shall complete an audit of its financial statements by a PCAOB auditor to comply with the requirements of the Securities Exchange Act of 1934, as amended.
  (v) Stemlyft will add to its current existing location in Spring, TX an AIH Altitude Chamber, biosound, salt room and other Garrett therapies, including a medical division that will include the staffing and equipment to perform and bill for medical consultations, covid-related matters, medical exams, EKG, EEG, blood panels testing and TMS and Stemlyft agrees that all future locations will have a medical division and above-listed services.

 

4. Transaction Process.

 

(a) Following execution hereof, the parties hereto shall:

 

(i) prepare the Share Exchange Agreements;

(ii) Once the Share Exchange Agreements have been approved by each party’s Board of Director and/or Members, each party shall obtain the necessary approvals for the Share Exchange and pursuant to the laws of New York and, as applicable and Stemlyft shall complete the Stemlyft Undertakings;

(iii) The parties shall work together to prepare an 8-K and any other required regulatory disclosure documents according to the requirements of the Securities and Exchange Act of 1934, as amended.

 

(b) Officers and Directors.

 

(i) On the date of the Share Exchange, Dr. Huong Le will be appointed to the Board of Directors of AIH and will lead the management committee governing Stemlyft’s day-to-day operations along with Greg Breunich and Michael Lohan.

(ii) Following the Closing, Dr. Huong Le (or her designee) will be appointed an officer of ALTD’s wellness division.

(iii) Following the Closing, Michael Lohan will continue to oversee the business development and marketing of Stemlyft.

(iv) Following the Closing, Dr Minh Nguyen ( or his designee ) will be appointed as Medical Director at a fixed monthly rate of $ 1250 per facility.

 

5. Other post-Closing Conditions

 

(i) AIH will change the name of Stemlyft to “Altitude Wellness” or such other name the AIH Board chooses will better integrate the operations into the brand of AIH.

(ii) Stemlyft agrees to fund expansion of present Stemlyft site and two more facilities. Stemlyft agrees to put up operating capital for such facilities for 3 months at $60,000 per month totaling at least $540,000.

(iii) Stemlyft agrees to fund the cost of the creation of the franchise documents and filing fees with the Federal Trade Commission to enable Altitude Wellness to sell franchises to third parties.

(iv) Altitude Wellness will receive up to 3 points on the leasing of equipment to franchisees or other purchasers from RAD Leasing of Texas.

(v) Altitude Wellness will receive a negotiated percentage of the medical revenues

 

 
 

 

6. Conditions to Closing. The Closing of the Share Exchange shall take place on a mutually agreeable time and place once the following matters are successfully resolved or completed, as applicable:

 

(a) All of the Undertakings have been successfully accomplished, or waived by the other party; and

 

(b) The Share Exchange Agreement is approved by the Board of Directors and by each party’s shareholders or members as required under the laws of each party’s relevant jurisdiction and executed by the parties hereto.

 

7. Effective Date. The Effective date of the Exchange shall be the date upon the Closing of the Share Exchange Agreement, any time prior to April 15, 2021. If such Share Exchange Agreement is not closed by April 15, 2021, then AIH shall have the option to terminate this LOI and all agreements associated therewith.

 

8. Costs. Each party hereto shall be responsible for payment of their own legal, accounting and any other out-of-pocket expenses reasonably incurred in connection with this transaction, whether or not this transaction is consummated.

 

9. Confidentiality. The parties shall not disclose the confidential information of the other party, and all signatories agree not to disclose any material, non-public information related to AIH or to trade on any such material, non-public information.

 

10. No-Shop. Stemlyft agrees not to discuss any potential transactions with any third parties for a period of sixty days following the execution of this letter.

 

This letter is not intended as a contract or to create any enforceable rights or obligations whatsoever on the part of either party. No obligations on the part of either party with respect to the matters covered hereby shall exist unless and until a written agreement, satisfactory in form and substance to both parties, has been approved by their respective boards of directors and shareholders and executed by officers specifically authorized to do so.

 

 
 

 

If the foregoing accurately reflects your understanding of the terms and conditions of our agreement please so indicate by signing below as designated.

 

Yours truly,  
   
ALTITUDE INTERNATIONAL HOLDINGS, INC  
   
/s/ Greg Breunich  
Greg Breunich, CEO and Director  

 

APPROVED AND ACCEPTED THIS 9th day of April 2021.  
   
TOTAL LIFESTYLE CARE, LLC  
Doing business as Stemlyft  
   
/s/ Huong Le  
Huong Le  
   
/s/ Minh Nguyen  
Minh Nguyen  
   

/s/ Michael Nguyen

 
Michael Nguyen  
   

/s/ Michelle Nguyen

 
Michelle Nguyen