U. S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-12G
GENERAL FORM FOR REGISTRATION OF
SECURITIES OF
SMALL BUSINESS ISSUERS
Under Section 12(b) or 12(g) of the Securities
Exchange Act of 1934
ALADDIN INTERNATIONAL, INC.
(Name of Small Business Issuer in its charter)
Minnesota |
41-1683548 |
(State or other jurisdiction of |
(I.R.S. Employer |
incorporation or organization) |
Identification No.) |
2575 Pearl Street, Suite 220
Boulder, CO 80302
(Address of Principal Executive Offices)
Registrants telephone number: (303) 499-6000
Securities to be registered under Section 12(b) of the Act:
Title of each class Name of each exchange on
to be so registered which each class is to be registered
Not Applicable
Securities to be registered under Section 12(g) of the Act:
Common Stock
(Title of class)
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of "large accelerated filer, ” and “ smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer o |
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Accelerated filer o |
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Non-accelerated filer o |
|
Smaller reporting company þ |
ITEM 1. DESCRIPTION OF BUSINESS
Aladdin International, Inc. (the "Registrant" or "Company") was incorporated under the laws of the state of Minnesota on May 3, 1972. The Company was a franchisee of fast food restaurants in Milwaukee, Wisconsin until the franchised restaurants were sold in October 1998. After the sale, the Company has been engaged in searching for a merger candidate that would expand the Companys business plan. In an effort to improve the Companys ability to find a private operating company interested in engaging in a merger or acquisition transaction with the Company, the Companys Board of Directors determined that the Company should sell its remaining real estate assets, distribute the sale proceeds to the Companys shareholders and expand the Companys Board and management team to include persons who have been successful in completing mergers of private operating companies with public blank-check companies.
On February 14, 2008, the Company entered into a Stock Purchase Agreement with Michael Friess and Sanford Schwartz, both of whom have been successful in completing merger transactions between public blank-check companies they controlled with private operating companies. The Stock Purchase Agreement provided that some time following the sale of the Companys real estate and the distribution of the sale proceeds to the Companys shareholders, each of Mr. Friess and Mr. Schwartz would purchase 1,819,374 shares of the Companys common stock (representing 40% of the then-to-be outstanding shares of the Companys common stock) for $10,000. On June 24, 2010, the Company sold the real estate. The Board of Directors declared a dividend of $0.148 per share paid on May 6, 2011, to its shareholders of record on March 31, 2011. On July 16, 2014, in connection with the sale of the shares to Mr. Friess and Mr. Schwartz, Mr. Friess and Mr. Schwartz were appointed to the Companys Board of Directors, the then current Directors resigned from the Board, Mr. Friess was appointed CEO of the Company, and Mr. Schwartz was appointed CFO and Secretary.
The Company plans to hold a shareholder meeting to reincorporate the Company in the State of Nevada and amend the Articles of Incorporation to increase the authorized common stock of the Company to eight hundred million (800,000,000) shares of common stock and to authorize the creation of preferred stock.
The Company has opted to become a "blank check" company and to further engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions.
The Company has opted to register its common stock pursuant to section 12(g) of the Securities Exchange Act of 1934 (the Exchange Act) in an effort to maximize shareholder value. The best use and primary attraction of the Company as a merger partner or acquisition vehicle will be its status as a reporting public company. Any business combination or transaction is expected to result in a significant issuance of shares and substantial dilution to present stockholders of the Company.
The proposed business activities described herein classify the Company as a "blank check" company. Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. Management does not intend to undertake any additional offerings of the Company's securities, either debt or equity, until such time as the Company has successfully implemented its business plan described herein.
The Company maintains headquarters at the office of its President. The Companys website is www.aladdininternationalinc.com . The Company is not required to deliver an annual report to security holders and at this time does not anticipate the distribution of such a report. The Company will file reports with the SEC.
The public may read and copy any materials the Company files with the SEC in the SECs Public Reference Section, Room 1580, 100 F Street N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Section by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an Internet site that contains reports, proxy, and information statements, and other information regarding issuers that file electronically with the SEC, which can be found at: http://www.sec.gov.
Employees
We currently have no employees. Michael Friess and Sanford Schwartz each devote approximately 5-10% of their time to the Company's business. Our management expects to use consultants, attorneys and accountants as necessary, and does not anticipate a need to engage any full-time employees so long as we are seeking and evaluating business opportunities. The need for employees and their availability will be addressed in connection with the decision whether or not to acquire or participate in specific business opportunities.
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ITEM 1A. RISK FACTORS
A. Conflicts of Interest. There are certain conflicts of interest between us and our officers and directors. They have other business interests to which they currently devote attention, and are expected to continue to do so. As a result, conflicts of interest may arise that can be resolved only through their exercise of judgment in a manner which is consistent with their fiduciary duties to the Company.
It is anticipated that our principal shareholders may actively negotiate or otherwise consent to the purchase of all or a portion of their common stock as a condition to, or in connection with, a proposed merger or acquisition transaction. In this process, our principal shareholders may consider their own personal pecuniary benefit rather than the best interests of our other shareholders, and the other shareholders are not expected to be afforded the opportunity to approve or consent to any particular stock buy-out transaction.
B. Need for Additional Financing. We have very limited funds, and such funds are unlikely to be adequate to take advantage of any available business opportunities. Even if our funds prove to be sufficient to acquire an interest in, or complete a transaction with, a business opportunity, we may not have enough capital to exploit the opportunity. Our ultimate success may depend upon our ability to raise additional capital. We have not investigated the availability, source, or terms that might govern the acquisition of additional capital and will not do so until we determine a need for additional financing.
If additional capital is needed, there is no assurance that funds will be available from any source or, if available, that they can be obtained on terms acceptable to us. If such funds are not available, our operations will be limited to those that can be financed with our modest capital.
C. Regulation of Penny Stocks. Our securities, when available for trading, will be subject to a Securities and Exchange Commission rule that imposes special sales practice requirements upon broker-dealers who sell such securities to persons other than established customers or accredited investors. For purposes of the rule, the phrase "accredited investors" means, in general terms, institutions with assets in excess of $5,000,000, or individuals having a net worth in excess of $1,000,000 or having an annual income that exceeds $200,000 (or that, when combined with a spouse's income, exceeds $300,000). For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and receive the purchaser's written agreement to the transaction prior to the sale. Consequently, the rule may affect the ability of broker-dealers to sell our securities and also may affect the ability of our shareholders in this offering to sell their securities in any market that might develop.
Shareholders should be aware that, according to Securities and Exchange Commission Release No. 34-29093, the market for penny stocks has suffered from patterns of fraud and abuse. Such patterns include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and (v) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. The Company's management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.
D. No Operating History or Revenue and Minimal Assets. The Company has had no operating history nor any revenues or earnings from operations since 1998. The Company has no significant assets or significant financial resources. The Company will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in the Company incurring a net operating loss which will increase continuously until the Company can consummate a business combination with a profitable business opportunity. There is no assurance that the Company can identify such a business opportunity and consummate such a business combination.
E. No Assurance of Success or Profitability. There is no assurance that we will acquire a business opportunity. Even if we should become involved in a business opportunity, there is no assurance that it will generate revenues or profits, or that the market price of our common stock will be increased thereby.
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F. Possible Business - Not Identified and Highly Risky. We have not identified and have no commitments to enter into or acquire a specific business opportunity. Therefore we can disclose the risks and hazards of a business or opportunity that we may enter into in only a general manner, and cannot disclose the risks and hazards of any specific business or opportunity. An investor can expect a potential business opportunity to be quite risky. Our acquisition of or participation in a business opportunity will likely be highly illiquid and could result in a total loss to us and our shareholders if the business or opportunity proves to be unsuccessful.
G. Type of Business Acquired. The type of business to be acquired may be one that desires to avoid affecting its own public offering and the accompanying expense, delays, uncertainties, and federal and state requirements which purport to protect investors. Because of our limited capital, it is more likely than not that any acquisition will involve other parties whose primary interest is the acquisition of control of a publicly traded company. Moreover, any business opportunity acquired may be currently unprofitable or present other negative factors.
H. Impracticability of Exhaustive Investigation. Our limited funds and the lack of full-time management will likely make it impracticable to conduct a complete and exhaustive investigation and analysis of a business opportunity before we commit to such opportunity. Management decisions, therefore, will likely be made without detailed feasibility studies, independent analysis, market surveys and the like, which, if we had more funds, would be desirable. We will be particularly dependent in making decisions upon information provided by the promoter, owner, sponsor, or others associated with the business opportunity seeking our participation. A significant portion of our available funds may be expended for investigative expenses and other expenses related to preliminary aspects of completing an acquisition transaction, whether or not any business opportunity investigated is eventually acquired.
I. Lack of Diversification. Because of our limited financial resources, it is unlikely that we will be able to diversify our acquisitions or operations. This probable inability to diversify our activities into more than one area will subject us to economic fluctuations within a particular business or industry and therefore increase the risks associated with our operations.
J. Requirement of Audited Financial Statements May Disqualify Business Opportunities. Management of the Company believes that any potential business opportunity must provide audited financial statements for review, and for the protection of all parties to the business combination. One or more attractive business opportunities may choose to forego the possibility of a business combination with the Company, rather than incur the expenses associated with preparing audited financial statements.
K. Other Regulation. An acquisition we make may be of a business that is subject to regulation or licensing by federal, state, or local authorities. Compliance with such regulations and licensing can be expected to be a time-consuming, expensive process and may limit our other investment opportunities.
L. Dependence Upon Management; Limited Participation of Management . We will be heavily dependent upon the skills, talents, and abilities of our officers and directors to implement our business plan, and may, from time to time, find that the inability of such persons to devote their full-time attention to our business results in a delay in progress toward implementing our business plan. Furthermore, we will be entirely dependent upon the experience of our officers and directors in seeking, investigating, and acquiring a business and in making decisions regarding our operations. Because investors will not be able to evaluate the merits of our possible business acquisitions, they should critically assess the information concerning our officers and directors.
M. Lack of Continuity in Management. The Company does not have an employment agreement with any of its officers or directors, and as a result, there is no assurance that they will continue to manage the Company in the future. In connection with the acquisition of a business opportunity, it is likely the current officers and directors of the Company will resign. A decision to resign will be based upon the identity of the business opportunity and the nature of the transaction, and is likely to occur without the vote or consent of the shareholders of the Company.
N. Indemnification of Officers and Directors. Our Articles of Incorporation provide that we will indemnify our directors, officers, employees, and agents to the fullest extent permitted by Minnesota law. We will also bear the expenses of such litigation for any of our directors, officers, employees, or agents, upon such person's promise to repay us if it is ultimately determined that any such person shall not have been entitled to indemnification. This indemnification policy could result in substantial expenditures which we may be unable to recoup.
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O. Dependence Upon Outside Advisors. To supplement the business experience of our officers and directors, we may be required to employ accountants, technical experts, appraisers, attorneys, or other consultants or advisors. The selection of any such advisors will be made by our officers without any input from shareholders. Furthermore, it is anticipated that such persons may be engaged on an "as needed" basis without a continuing fiduciary or other obligation to the Company. In the event management considers it necessary to hire outside advisors, they may elect to hire persons who are affiliates of one or more officers or directors of the Company, if they are able to provide the required services.
P. Leveraged Transactions. There is a possibility that any acquisition of a business opportunity we make may be leveraged, i.e., we may finance the acquisition of the business opportunity by borrowing against the assets of the business opportunity to be acquired, or against the projected future revenues or profits of the business opportunity. This could increase our exposure to losses. A business opportunity acquired through a leveraged transaction is profitable only if it generates enough revenues to cover the related debt and expenses. Failure to make payments on the debt incurred to purchase the business opportunity could result in the loss of a portion or all of the assets acquired. There is no assurance that any business opportunity acquired through a leveraged transaction will generate sufficient revenues to cover the related debt and expenses.
Q. Competition. The search for potentially profitable business opportunities is intensely competitive. We expect to be at a disadvantage when competing with many firms that have substantially greater financial and management resources and capabilities than we do. These competitive conditions will exist in any industry in which we may become interested.
R. No Foreseeable Dividends. We have not paid cash dividends on our common stock and do not anticipate paying such dividends in the foreseeable future.
S. Loss of Control by Present Management and Shareholders. We may consider an acquisition in which we would issue as consideration for the business opportunity to be acquired, an amount of our authorized but unissued common stock that would, upon issuance, represent the great majority of the voting power and equity of the Company. The result of such an acquisition would be that the acquired company's shareholders and management would control the Company, and our management could be replaced by persons unknown at this time. Such a merger would result in a greatly reduced percentage of ownership by our current shareholders.
T. No Public Market Exists. There is no public market for our common stock, and no assurance can be given that a market will develop or that a shareholder ever will be able to liquidate his investment without considerable delay, if at all. If a market should develop, the price may be highly volatile. Factors such as those discussed in this "Risk Factors" section may have a significant impact upon the market price of the securities. Because of the low price of the securities, many brokerage firms may not be willing to effect transactions in the securities. Even if a purchaser finds a broker willing to effect a transaction in these securities, the combination of brokerage commissions, state transfer taxes, if any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of such securities as collateral for any loans.
U. Government Regulations. Although we will be subject to the reporting requirements under the Exchange Act, management believes we will not be subject to regulation under the Investment Company Act of 1940, as amended (the Investment Company Act), since we will not be engaged in the business of investing or trading in securities. If we engage in business combinations which result in our holding passive investment interests in a number of entities, we could be subject to regulation under the Investment Company Act. If so, we would be required to register as an investment company and could be expected to incur significant registration and compliance costs. We have obtained no formal determination from the SEC as to our status under the Investment Company Act and, consequently, violation of the Investment Company Act could subject us to material adverse consequences.
V. Potential Acquisitions. If we enter into a business combination with a foreign company, we will be subject to risks inherent in business operations outside of the United States. These risks include, for example, currency fluctuations, regulatory problems, punitive tariffs, unstable local tax policies, trade embargoes, risks related to shipment of raw materials and finished goods across national borders and cultural and language differences. Foreign economies may differ favorably or unfavorably from the United States economy in growth of gross national product, rate of inflation, market development, rate of savings, and capital investment, resource self-sufficiency and balance of payment positions, and in other respects.
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ITEM 2. FINANCIAL INFORMATION
General Business Plan
At this time, the Company's purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by persons or firms who or which desire to seek the perceived advantages of an Exchange Act registered corporation. The Company will not restrict its search to any specific business, industry, or geographical location and the Company may participate in a business venture of virtually any kind or nature. This discussion of the proposed business is intentionally general and is not meant to be restrictive of the Company's virtually unlimited discretion to search for and enter into potential business opportunities. Management anticipates that it may be able to participate in only one potential business venture because the Company has nominal assets and limited financial resources. See "FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA." This lack of diversification should be considered a substantial risk to shareholders of the Company because it will not permit the Company to offset potential losses from one venture against gains from another.
The Company may seek a business opportunity with entities which have recently commenced operations, or which wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. The Company may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.
The Company intends to advertise and promote the Company privately. The Company has not yet prepared any notices or advertisements.
The Company anticipates that the selection of a business opportunity in which to participate will be complex and extremely risky. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, management believes that there are numerous firms seeking the perceived benefits of a publicly registered corporation. Such perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes), for all shareholders and other factors.
The Company has, and will continue to have, little or no capital with which to provide the owners of business opportunities with any significant cash or other assets. However, management believes the Company will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in a publicly registered company without incurring the cost and time required to conduct an initial public offering. The owners of the business opportunities will, however, incur significant legal and accounting costs in connection with the acquisition of a business opportunity, including the costs of preparing Form 8-K's, 10-K's and 10-Q's, agreements and related reports and documents. The Securities Exchange Act of 1934 (the "Exchange Act") specifically requires that any merger or acquisition candidate comply with all applicable reporting requirements, which include providing audited financial statements to be included within the numerous filings relevant to complying with the Exchange Act. The officers and directors of the Company have not conducted market research and are not aware of statistical data which would support the perceived benefits of a merger or acquisition transaction for the owners of a business opportunity.
The analysis of new business opportunities will be undertaken by, or under the supervision of, the officers and directors of the Company. Management intends to concentrate on identifying preliminary prospective business opportunities, which may be brought to its attention through present associations of the Company's officers and directors. In analyzing prospective business opportunities, management will consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which then may be anticipated to impact the proposed activities of the Company; the potential for growth or expansion; the potential for profit; the perceived public recognition of acceptance of products, services, or trades; name identification; and other relevant factors. The Company will not acquire or merge with any company for which audited financial statements cannot be obtained prior to the closing of the proposed transaction.
The officers of the Company have experience in managing companies similar to the Company and shall rely upon their own efforts, in accomplishing the business purposes of the Company. The Company may from time to time utilize outside consultants or advisors to effectuate its business purposes described herein. No policies have been adopted regarding use of such consultants or advisors, the criteria to be used in selecting such consultants or advisors, the services to be provided, the term of service, or regarding the total amount of fees that may be paid. However, because of the limited resources of the Company, it is likely that any such fee the Company agrees to pay would be paid in stock and not in cash.
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The Company will not restrict its search for any specific kind of firms, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its corporate life. It is impossible to predict at this time the status of any business in which the Company may become engaged, in that such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer. However, the Company does not intend to obtain funds in one or more private placements to finance the operation of any acquired business opportunity until such time as the Company has successfully consummated such a merger or acquisition.
It is anticipated that the Company will require approximately $50,000 during the next 12 months to implement its business plan described herein. The Company has limited capital with which to pay these anticipated expenses. It is the intent of management to provide the working capital necessary to support and preserve the integrity of the Company but there is no legal obligation for management to provide any additional funding to the Company. The Company has not identified any alternative sources and there is substantial doubt about the Companys ability to continue as a going concern.
ACQUISITION OF OPPORTUNITIES
In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity. It may also acquire stock or assets of an existing business. On the consummation of a transaction, it is probable that the present management and shareholders of the Company will no longer be in control of the Company. In addition, the Company's directors may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of the Company's shareholders or may sell their stock in the Company. Any and all such sales will only be made in compliance with the securities laws of the United States and any applicable state.
It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, of which there can be no assurance, it will be undertaken by the surviving entity after the Company has successfully consummated a merger or acquisition and the Company is no longer considered a "shell" company. The issuance of substantial additional securities and their potential sale into any trading market which may develop in the Company's securities may have a depressive effect on the value of the Company's securities in the future, if such a market develops, of which there is no assurance.
With respect to any merger or acquisition, the negotiations with target company management is expected to focus on the percentage of the Company which the target company shareholders would acquire in exchange for all of their shareholdings in the target company. Depending upon, among other things, the target company's assets and liabilities, the Company's shareholders will in all likelihood hold a substantially lesser percentage ownership interest in the Company following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event the Company acquires a target company with substantial assets. Any merger or acquisition effected by the Company can be expected to have a significant dilutive effect on the percentage of shares held by the Company's then shareholders.
The Company will participate in a business opportunity only after the negotiation and execution of appropriate written agreements. Although the terms of such agreements cannot be predicted, generally such agreements will require some specific representations and warranties by all of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing, will outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants, will set forth remedies on default and will include miscellaneous other terms.
As stated hereinabove, the Company will not acquire or merge with any entity which cannot provide independent audited financial statements prior to the closing of the proposed transaction. Upon the effective date of this registration statement, the Company is subject to all of the reporting requirements included in the Exchange Act. Included in these requirements is the affirmative duty of the Company to file independent audited financial statements as part of its Form 8-K to be filed with the Securities and Exchange Commission upon consummation of a merger or acquisition, as well as the Company's audited financial statements included in its annual report on Form 10-K. The Company does not intend to provide the Company's security holders with any disclosure documents, including audited financial statements, concerning an acquisition or merger candidate and its business prior to the consummation of any acquisition or merger transaction.
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The Company will remain an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns which have significantly greater financial and personnel resources and technical expertise than the Company. In view of the Company's extremely limited financial resources and limited management availability, the Company will continue to be at a significant competitive disadvantage compared to the Company's competitors.
ITEM 3. PROPERTIES
The Company has no properties and at this time has no agreements to acquire any properties. The Company currently maintains a mailing address at 2575 Pearl Street, Suite 220, Boulder, CO, which is the address of its President. The Company pays no rent for the use of this mailing address. The Company does not believe that it will need to maintain an office at any time in the foreseeable future in order to carry out its plan of operations described herein.
ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Principal Stockholders
The following table sets forth certain information as of September 30, 2014 regarding the beneficial ownership of the Company's common stock by (i) each stockholder known by the Company to be the beneficial owner of more than 5% of the Company's common stock, (ii) by each director and executive officer of the Company and (iii) by all executive officers and directors of the Company as a group. Each of the persons named in the table has sole voting and investment power with respect to common stock beneficially owned.
ITEM 5. DIRECTORS AND EXECUTIVE OFFICERS
Officers and Directors
The following table sets forth certain information concerning each of the Company's directors and executive officers:
NAME |
|
AGE |
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POSITION |
|
|
|
|
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Michael Friess |
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64 |
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Chairman of the Board, President and CEO |
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|
|
|
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Sanford Schwartz |
|
64 |
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CFO, Secretary, Director |
There are no agreements or understandings for any officer or director to resign at the request of another person and none of the above named officers and directors are acting on behalf of or will act at the direction of any other person.
There is no family relationship between any director or executive officer of the Company.
The Board of Directors presently has no committees.
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Set forth below are the names of all directors and executive officers of the Company, all positions and offices with the Company held by each such person, the period during which he has served as such, and the business experience of such persons during at least the last five years:
Michael Friess is currently a self-employed attorney licensed to practice law in the State of Colorado. He was a partner from January 1983 to December 1993 in the New York City law firm of Schulte, Roth & Zabel, where his practice emphasized taxation. Mr. Friess has served as Chairman of the Board and CEO of the Company from July 2014 to the present. Mr. Friess served on the Board of Directors of Oralabs Holding Corporation (NASDAQ: OLAB) from September 1997 until December 2006. In an average week, Mr. Friess spends approximately 5 hours on Company matters. Mr. Friess was appointed a director because of his extensive legal and business acquisitions experience, including working with public blank check companies interested in merging with a private operating company.
Sanford Schwartz is the Chairman of Creative Business Strategies, LLC, a business consulting firm in Boulder, Colorado co-founded by Mr. Schwartz in 1985 that provides business development, management and restructuring services to business owners and companies, including companies engaged in real estate management and development and various sectors of the healthcare industry. Mr. Schwartz has served as a director of the Company and CFO and Secretary from July 2014 to present. In an average week, Mr. Schwartz spends approximately 5 hours on Company matters. Mr. Schwartz was appointed a director because of his over 25 years of business acquisition and development experience, including working with public blank check companies interested in merging with a private operating company.
Previous Blank-Check Experience
Mr. Michael Friess, President and a director of the Company, and Mr. Sanford Schwartz, Chief Financial Officer and a director of the Company, have both been involved either as an officer or director, or both, with other blank-check companies, which have completed some form of corporate reorganization. To date, Mr. Friess and Mr. Schwartz have acquired a majority interest in six companies, in addition to the Company, that had no significant assets or business operations, obtained the management, accounting and legal services and provided the funds required to register the common stock of each of the companies pursuant to Section 12(g) of the Securities Exchange Act of 1934 and, if necessary, to satisfy outstanding obligations of the company and found private investors or private operating companies interested in merging an operating company with the company. Typically, Mr. Friess and Mr. Schwartz have then sold all or substantially all of their interests in the company to the parties interested in merging a private operating company with the company. The officers and directors of the Company intend to work on developing additional registered blank check companies. The following is a list of the blank-check companies with which the Company's officers and directors have previously been involved during the last five years:
Hemcure, Inc. (HMCU), Commission File #000-51543, was organized to provide administrative and marketing services to physicians or physician groups who emphasized outpatient non-surgical treatment for hemorrhoids. Mr. Friess and Mr. Schwartz acquired ownership of 73% of HMCUs then outstanding shares during April 2005 and sold all of their shares of HMCU to private investors for $325,000 during June 2006, following which HMCU became Aurasound, Inc. listed on the OTCBB symbol (ARAU). Current officers and directors of the Company are not currently officers, directors or employees of ARAU and, therefore, have no direct knowledge of the business operations or possible pending acquisition, business combinations or mergers of ARAU. ARAU does not appear to be current in all of its filings with the Securities and Exchange Commission.
Implant Technologies, Inc. (IMLT), Commission File #000-17064, was formed for the purpose of developing and marketing medical products. During April 2006, Mr. Friess and Mr. Schwartz acquired ownership of 80% of IMLTs then outstanding shares of common stock and from April 2006 to July, 2007, Mr. Friess served as Secretary, Treasurer and a director and Mr. Schwartz served as a director of IMLT. During July 2007, they sold all of their shares of IMLT to private investors for $582,500 and IMLT became Oasis Online Technologies Corp listed on the OTCBB symbol (OOLN), a company seeking acquisitions in the online security and authentication market. Current officers and directors of the Company are not currently officers, directors or employees of OOLN and, therefore, have no direct knowledge of the business operations or possible pending acquisition, business combinations or mergers of OOLN. OOLN does not appear to be current in its filings with the Securities and Exchange Commission.
8
Discovery Technologies, Inc. (DSVY), Commission File #000-18606, was formed to design, manufacture and market video products that transmit pictures over standard voice-grade telephone lines. In June 2006, the sole remaining director, appointed Michael Friess as President, CEO and a director of the company, and Sanford Schwartz as a director of the company, and Mr. Friess and Mr. Schwartz acquired ownership of 80% of DSVYs then outstanding shares of common stock. During December 2007, Mr. Friess and Mr. Schwartz sold their shares of DSVY for $550,000 and DSVY became China Green Agriculture listed on the OTCBB symbol (CGA). Immediately following the transaction, Mr. Friess and Mr. Schwartz owned 111,386 shares of CGAs common stock (representing approximately 1% of CGAs then outstanding shares of common stock). Current officers and directors of the Company are not currently officers or directors or employees of CGA and, therefore, have no direct knowledge of the business operations or possible pending acquisitions, business combinations or mergers of CGA. CGA appears to be current in its filings with the Securities and Exchange Commission.
Certified Technologies Corporation (CFDT), Commission File #000-52786, was formed to market a fire retardant chemical formulation to the commercial aviation and business furniture industries. In February 2007, Michael Friess and Sanford Schwartz acquired 51% of CFDTs then outstanding shares of common stock and Mr. Friess was appointed President, CEO and a director and Mr. Schwartz was appointed a director. During May 2008, Mr. Friess and Mr. Schwartz sold substantially all of their shares of CFTD for $740,000 and CFDT became Zhaoheng Hydropower CO listed on the OTCBB symbol (ZHYP). Immediately following the transaction, Mr. Friess and Mr. Schwartz owned 444,498 shares of ZHYPs common stock (representing approximately 1% of ZHYPs then outstanding shares of common stock). Current officers and directors of the Company are not currently officers or directors or employees of ZHYP and, therefore, have no direct knowledge of the business operations or possible pending acquisitions, business combinations or merger of ZHYP. ZHYP appeared to be current in all of its filings with the Securities and Exchange Commission through May, 2009, and has since moved the Company from the United States and filed a Form 15-12G terminating its filing requirements with the Securities and Exchange Commission.
Henry County Plywood Corporation (HRYC), Commission File #000-53208, was formed to purchase, lease, sell, manufacture and deal in lumber, and other wood products. In August 2006, Michael Friess and Sanford Schwartz acquired 80% of HRYCs then outstanding shares of common stock and Mr. Friess was appointed President, CEO and a director of the company, Sanford Schwartz was appointed a director of the company. In October 2007, Messrs. Friess and Schwartz resigned as officers and directors of the Company, and in May 2008 Mr. Friess was reappointed to the Board. In January 2009, Mr. Friess and Mr. Schwartz sold most of their shares of HRYC for $500,000 and HRYC became Sino Green land Corp listed on the OTCBB symbol (SGLA). Immediately following the transaction, Mr. Friess and Mr. Schwartz owned a total of 999,778 shares of SGLAs common stock (representing approximately 1% of SGLAs then outstanding shares of common stock). Current officers and directors of the Company are not currently officers or directors or employees of SGLA and, therefore, have no direct knowledge of the business operations or possible pending acquisitions, business combinations or merger of SGLA. SGLA appeared to be current in all of its filings with the Securities and Exchange Commission through February 2012, and has since moved the Company from the United States and filed a Form 15-12G terminating its filing requirements with the Securities and Exchange Commission.
P I Services, Inc. (PISV), Commission File #000-53263, was formed as Sweet Little Deal. In August 2007, Michael Friess and Sanford Schwartz acquired 80% of PISVs then outstanding shares of common stock and Mr. Friess was appointed President and Chairman of the Board of the company, Mr. Schwartz was appointed a director of the company. In January 2009, Physicians was reincorporated in the State of Nevada through a merger with P I Services, Inc. In March 2010, Mr. Friess and Mr. Schwartz sold most of their shares of PISV for $275,000 and PISV became China Lithium Technologies Inc. listed on the OTCBB symbol (CLTT). Immediately following the transaction, Mr. Friess and Mr. Schwartz owned a total of 1,330,468 shares of CLTTs common stock (approximately 3% of CLTTs then outstanding shares of common stock). Current officers and directors of the Company are not currently officers or directors or employees of CLTT and, therefore, have no direct knowledge of the business operations or possible pending acquisitions, business combinations or merger of CLTT. CLTT does not appear to be current in all of its filing with the Securities and Exchange Commission.
Fona, Inc. (FNAM), Commission File #000-54129, was formed as Fonahome Corporation to develop and market an interactive information and advertising service. In 2009, Michael Friess and Sanford Schwartz acquired 50.1% of FNAMs then outstanding shares of common stock and Mr. Friess was appointed President and Chairman of the Board of the company, and Mr. Schwartz was appointed a director of the Company. In March 2009, the Company was reincorporated in the State of Nevada through a merger with Fona, Inc. On June 6, 2014, Mr. Friess and Mr. Schwartz each sold 366,000 shares of Fona, Inc. for $72,500. On October 6, 2014, Mr. Friess and Mr. Schwartz each sold 1,530,901 shares of FNAM for $32,376. Mr. Friess and Mr. Schwartz currently each own 80,574 shares of FNAMs common stock (less than 2% of FNAMs then outstanding shares of common stock). Mr. Friess and Mr. Schwartz are no longer officers or directors of Fona, Inc. and, therefore, have no direct knowledge of the business operations or possible pending acquisitions, business combinations or merger of FNAM. FNAM appears to be current in all of its filing with the Securities and Exchange Commission.
9
Conflicts of Interest
The Company's officers and directors have in the past and may in the future be officers and directors of other companies of a similar nature and with a similar purpose as the Company. Consequently, there are potential inherent conflicts of interest in Mr. Friess and Mr. Schwartz serving as officers and directors of the Company. Insofar as the officers and directors are engaged in other business activities, management anticipates it will devote only a minor amount of time to the Company's affairs. The officers and directors of the Company may in the future become shareholders, officers or directors of other companies which may be formed for the purpose of engaging in business activities similar to those conducted by the Company. The Company does not currently have a right of first refusal pertaining to opportunities that come to management's attention even if the opportunities relate to the Company's proposed business operations.
The officers and directors are, so long as they are officers or directors of the Company, subject to the restriction that all opportunities contemplated by the Company's plan of operation which come to their attention in the performance of their duties as officers and directors of the Company will be considered opportunities of, and be made available to the Company. However, they are under no obligation to make any opportunities that come to their attention in the performance of their duties for any other companies or in any other manner available to the Company. Except as set forth above, the Company has not adopted any other conflict of interest policy with respect to such transactions.
Investment Company Act of 1940
Management believes the Company is not subject to regulation under the Investment Company Act of 1940, insofar as the Company will not be engaged in the business of investing or trading in securities. In the event the Company engages in business combinations, which result in the Company holding passive investment interests in a number of entities, the Company could be subject to regulation under the Investment Company Act of 1940. In such event, the Company would be required to register as an investment company and could be expected to incur significant registration and compliance costs. The Company has obtained no formal determination from the Securities and Exchange Commission as to the status of the Company under the Investment Company Act of 1940. Any violation of such Act would subject the Company to material adverse consequences.
ITEM 6. EXECUTIVE COMPENSATION
None of the Company's officers or directors receives any compensation for their respective services rendered to the Company, nor have they received such compensation. They have agreed to act without compensation until authorized by the Board of Directors, which is not expected to occur until the Company has generated revenues from operations after consummation of a merger or acquisition. As of the date of this registration statement, the Company has minimal funds available to pay officers or directors. Further, none of the officers or directors are accruing any compensation pursuant to any agreement with the Company.
It is possible that, after the Company successfully consummates a merger or acquisition with an unaffiliated entity, that entity may desire to employ or retain one or more members of the Company's management for the purposes of providing services to the surviving entity, or otherwise provide other compensation to such persons. However, the Company has adopted a policy whereby the offer of any post-transaction remuneration to members of management will not be a consideration in the Company's decision to undertake any proposed transaction. Each member of management has agreed to disclose to the Company's Board of Directors any discussions concerning possible compensation to be paid to them by any entity which proposes to undertake a transaction with the Company and further, to abstain from voting on such transaction. Therefore, as a practical matter, if each member of the Company's Board of Directors is offered compensation in any form from any prospective merger or acquisition candidate, the proposed transaction will not be approved by the Company's Board of Directors as a result of the inability of the Board to affirmatively approve such a transaction.
It is possible that persons associated with management may refer a prospective merger or acquisition candidate to the Company. In the event the Company consummates a transaction with any entity referred by associates of management, it is possible that such an associate will be compensated for their referral. It is anticipated that this fee will be either in the form of restricted common stock issued by the Company as part of the terms of the proposed transaction, or will be in the form of cash consideration. However, if such compensation is in the form of cash, such payment will be tendered by the acquisition or merger candidate, because the Company has minimal cash available. The amount of such compensation, if any, cannot be determined as of the date of this registration statement.
No retirement, pension, profit sharing, stock option or insurance programs or other similar programs have been adopted by the Registrant for the benefit of its employees.
10
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
No officer, director, promoter, or affiliate of the Company has or proposes to have any direct or indirect material interest in any asset that we propose to acquire through security holdings, contracts, options, or otherwise.
We may pay any consulting or finder's fee for consulting services to assist management in evaluating a prospective business opportunity in stock or in cash. Any such issuance of stock would be made on an ad hoc basis. Accordingly, we are unable to predict whether or in what amount such compensation might be made.
We currently do not anticipate that we will pay any salary, consulting fee, or finder's fee to any of our directors or executive officers, or to any other affiliate except as described under "Executive Compensation" above.
We maintain a mailing address at the offices of our President, Michael Friess, located at 2575 Pearl St., Suite 220, Boulder, CO 80302 for which we pay no rent. We anticipate that following the consummation of a business combination with an acquisition candidate, our office will be moved, but cannot predict future office or facility arrangements with our officers, directors or affiliates.
Although we have no current plans to do so, it is possible that we may enter into an agreement with an acquisition candidate requiring the sale of all or a portion of the common stock held by our largest shareholders and their affiliates to the acquisition candidate or principals thereof, or to other individuals or business entities, or requiring some other form of payment to our current shareholders, or requiring the future employment of specified officers and payment of salaries to them. It is more likely than not that any sale of securities by our current shareholders to an acquisition candidate would be at a price substantially higher than that originally paid by such shareholders. Any payment to current shareholders in the context of an acquisition in which we are involved would be determined entirely by the largely unforeseeable terms of a future agreement with an unidentified business entity.
Securities issued by blank check companies cannot be resold under Rule 144, but must be registered under the Securities Act of 1933. The Company has no obligation to register these or any other shares under the Securities Act of 1933.
The proposed business activities described herein classify the Company as a "blank check" company. Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. Management does not intend at this time to undertake any efforts to cause a market to develop in the Company's securities until such time as the Company has successfully implemented its business plan described herein.
ITEM 8. LEGAL PROCEEDINGS
Currently, there are no legal proceedings.
ITEM 9. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
(a) Market Information.
There is not a market for the Company's securities. There are no outstanding options or warrants to purchase shares of common stock or securities convertible into shares of the Companys common stock. The Company has no obligations to register any of its shares of common stock under the Securities Act of 1933. As of September 30, 2014, 909,687 of the Companys outstanding shares are eligible for transfer without registration under the Act.
(b) Holders.
As of September 30, 2010, there were approximately 159 holders of the Company's Common Stock.
(c) Dividends.
No dividends have been paid by the Company on any of its securities in the two most recent fiscal years and such dividends are not contemplated in the foreseeable future.
11
ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES
On July 16, 2014, the Board of Directors approved the issuance of 3,638,748 shares of its common stock, representing 80% of its then outstanding shares of common stock to two individuals, Sanford Schwartz and Michael Friess, for a $20,000 cash payment. The capital was used to pay for the preparation of documents necessary to register the Companys common stock pursuant to Section 12 (g) of the Securities Exchange Act of 1934. This transaction resulted in a change in control of the Company. The shares were issued without registration under the Securities Act of 1933 in reliance upon Section 4(2) of the Act. No underwriters were involved and no commissions or other consideration was paid in connection with the exchange.
ITEM 11. DESCRIPTION OF REGISTRANTS SECURITIES
Common Stock
Our Articles of Incorporation authorize the issuance of 10,000,000 shares of common stock with no par value. As of September 30, 2014 there were 4,548,435 shares of common stock issued and outstanding. Each record holder of common stock is entitled to one vote for each share held on all matters properly submitted to the shareholders for their vote. Cumulative voting for the election of directors is not permitted by the Articles of Incorporation.
Holders of outstanding shares of common stock are entitled to such dividends as may be declared from time to time by the Board of Directors out of legally available funds; and, in the event of liquidation, dissolution or winding up of our affairs, holders are entitled to receive, ratably, the net assets of the Company available to stockholders. All of the issued and outstanding shares of common stock are, and all unissued shares when offered and sold will be, duly authorized, validly issued, fully paid, and nonassessable. To the extent we issue additional shares of our common stock, the relative interests of then existing shareholders may be diluted.
Transfer Agent
As of the date hereof, the company transfer agent is Corporate Stock Transfer, Inc. in Denver Colorado.
ITEM 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Articles of Incorporation of the Company provide that the Company shall indemnify its officers and directors to the fullest extent permitted by Minnesota law. In addition, a director of the Company shall not be personally liable to the Company or its shareholders for monetary damages for breach of fiduciary duty as a director provided such person acted in good faith and in a manner which he reasonable believed to be in or not opposed to the best interest of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.
12
ITEM 13. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
INDEX TO FINANCIAL STATEMENTS
ALADDIN INTERNATIONAL, INC.
FINANCIAL STATEMENTS
with
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Report of Independent Registered Public Accounting Firm |
14 |
|
|
Financial Statements: |
|
|
|
Balance Sheets |
15 |
Statements of Operations |
16 |
Statement of Changes in Stockholders' (Deficit) |
18 |
Statements of Cash Flows |
19 |
Notes to Financial Statements |
21 |
13
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors
Aladdin International, Inc.
We have audited the accompanying balance sheets of Aladdin International, Inc. as of June 30, 2014 and 2013, and the related statements of operations, stockholders (deficit), and cash flows for the two years ended June 30, 2014 and 2013. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Aladdin International, Inc. as of June 30, 2014 and 2013, and the results of its operations and its cash flows for the two years ended June 30, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 1, the Company has no business operations and has negative working capital and stockholders deficits, which raise substantial doubt about its ability to continue as a going concern. Management's plan in regard to this matter is also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.
/s/ Schumacher & Associates, Inc.
Certified Public Accountants
7931 S Broadway, #314
Littleton, CO 80122
October 22, 2014
14
ALADDIN INTERNATIONAL, INC
BALANCE SHEET
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|||
|
|
2014 |
|
|
2014 |
|
|
2013 |
|
|||
|
|
(Unaudited) |
|
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Current Assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
8,876 |
|
|
$ |
574 |
|
|
$ |
1,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
8,876 |
|
|
|
574 |
|
|
|
1,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Escrow refund receivable |
|
|
- |
|
|
|
- |
|
|
|
949 |
|
Prepaid expenses |
|
|
87 |
|
|
|
175 |
|
|
|
175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Assets |
|
|
- |
|
|
|
175 |
|
|
|
1,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
8,963 |
|
|
$ |
749 |
|
|
$ |
2,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
100 |
|
|
$ |
- |
|
|
$ |
50 |
|
Accrued expenses |
|
|
6,600 |
|
|
|
- |
|
|
|
- |
|
Advance from affiliates |
|
|
- |
|
|
|
2,499 |
|
|
|
2,499 |
|
Stock option liability |
|
|
- |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
6,700 |
|
|
|
12,499 |
|
|
|
12,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
6,700 |
|
|
|
12,499 |
|
|
|
12,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Notes 1, 2, 3, 4, 5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, No par value 10,000,000 shares authorized, 4,548,435 issued and outstanding at September 30, 2014 and 909,687 issued and outstanding at June 30, 2014 and June 30, 2013 |
|
|
259,246 |
|
|
|
239,246 |
|
|
|
239,246 |
|
Additional paid-in capital |
|
|
3,550 |
|
|
|
1,051 |
|
|
|
882 |
|
Accumulated (deficit) |
|
|
(260,533 |
) |
|
|
(252,047 |
) |
|
|
(249,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS' (DEFICIT) |
|
|
2,263 |
|
|
|
(11,750 |
) |
|
|
(9,811 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) |
|
$ |
8,963 |
|
|
$ |
749 |
|
|
$ |
2,738 |
|
The accompanying notes are an integral part of the financial statements.
15
ALADDIN INTERNATIONAL, INC
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three Months |
|
|
Three Months |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
September 30, |
|
|
September 30, |
|
||
|
|
2014 |
|
|
2013 |
|
||
|
|
|
|
|
|
|
||
Revenues |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Audit fees |
|
|
6,600 |
|
|
|
- |
|
Professional fees |
|
|
1,260 |
|
|
|
- |
|
Transfer agent fees |
|
|
586 |
|
|
|
388 |
|
Other |
|
|
40 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
8,486 |
|
|
|
424 |
|
|
|
|
|
|
|
|
|
|
Net Operating (Loss) |
|
|
(8,486 |
) |
|
|
(424 |
) |
|
|
|
|
|
|
|
|
|
Other Expenses: |
|
|
|
|
|
|
|
|
Interest Expense |
|
|
- |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
Total Other Expenses |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net (Loss) |
|
$ |
(8,486 |
) |
|
$ |
(466 |
) |
|
|
|
|
|
|
|
|
|
Per Share |
|
Nil |
|
|
Nil |
|
||
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding |
|
|
3,948,641 |
|
|
|
909,687 |
|
The accompanying notes are an integral part of the financial statements.
16
ALADDIN INTERNATIONAL, INC
STATEMENTS OF OPERATIONS
|
|
Year |
|
|
Year |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
June 30, |
|
|
June 30, |
|
||
|
|
2014 |
|
|
2013 |
|
||
|
|
|
|
|
|
|
||
Revenues |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Transfer agent fees |
|
|
1,795 |
|
|
|
1,600 |
|
Other |
|
|
144 |
|
|
|
108 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
1,939 |
|
|
|
1,708 |
|
|
|
|
|
|
|
|
|
|
Net Operating (Loss) |
|
|
(1,939 |
) |
|
|
(1,708 |
) |
|
|
|
|
|
|
|
|
|
Other Expenses: |
|
|
|
|
|
|
|
|
Interest Expense |
|
|
169 |
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
Total Other Expenses |
|
|
169 |
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
Net (Loss) |
|
$ |
(2,108 |
) |
|
$ |
(1,877 |
) |
|
|
|
|
|
|
|
|
|
Per Share |
|
Nil |
|
|
Nil |
|
||
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding |
|
|
909,687 |
|
|
|
909,687 |
|
The accompanying notes are an integral part of the financial statements.
17
ALADDIN INTERNATIONAL, INC
STATEMENT OF CHANGES IN STOCKHOLDERS' (DEFICIT)
For the Period from July 1, 2012 through September 30, 2014
(Period from July 1, 2014 to September 30, 2014 is unaudited)
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
|
|||||
|
|
Common |
|
|
Stock |
|
|
Paid In |
|
|
Accumulated |
|
|
|
|
|||||
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
(Deficit) |
|
|
Total |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at July 1, 2012 |
|
|
909,687 |
|
|
$ |
239,246 |
|
|
$ |
713 |
|
|
$ |
(248,062 |
) |
|
$ |
(8,103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imputed Interest |
|
|
- |
|
|
|
- |
|
|
|
169 |
|
|
|
- |
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss-year ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,877 |
) |
|
|
(1,877 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2013 |
|
|
909,687 |
|
|
|
239,246 |
|
|
|
882 |
|
|
|
(249,939 |
) |
|
|
(9,811 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Imputed Interest |
|
|
- |
|
|
|
- |
|
|
|
169 |
|
|
|
- |
|
|
|
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss-year ended June 30, 2014 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,108 |
) |
|
|
(2,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2014 |
|
|
909,687 |
|
|
|
239,246 |
|
|
|
1,051 |
|
|
|
(252,047 |
) |
|
|
(11,750 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conversion of advance from affiliate to paid-in capital (Note 4) |
|
|
- |
|
|
|
- |
|
|
|
2,499 |
|
|
|
- |
|
|
|
2,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of stock for cash (Note 3) |
|
|
3,638,748 |
|
|
|
20,000 |
|
|
|
- |
|
|
|
- |
|
|
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss-three months ended September 30, 2014 (unaudited) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(8,486 |
) |
|
|
(8,486 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September 30, 2014 (unaudited) |
|
|
4,548,435 |
|
|
$ |
259,246 |
|
|
$ |
3,550 |
|
|
$ |
(260,533 |
) |
|
$ |
2,263 |
|
The accompanying notes are an integral part of the financial statements.
18
ALADDIN INTERNATIONAL, INC
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Three Months |
|
|
Three Months |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
September 30, |
|
|
September 30, |
|
||
|
|
2014 |
|
|
2013 |
|
||
|
|
|
|
|
|
|
||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
Net (loss) |
|
$ |
(8,486 |
) |
|
$ |
(466 |
) |
Adjustments to reconcile net loss to net cash (used in) operating activities: |
|
|
|
|
|
|
|
|
Non cash interest |
|
|
- |
|
|
|
42 |
|
Increase (decrease) in accounts payable & accrued expenses |
|
|
6,700 |
|
|
|
(200 |
) |
Decrease in pre-paid expenses |
|
|
88 |
|
|
|
88 |
|
(Decrease) in option liability |
|
|
(10,000 |
) |
|
|
- |
|
Net Cash (Used in) Operating Activities |
|
|
(11,698 |
) |
|
|
(536 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
- |
|
|
|
- |
|
Net Cash Provided by Investing Activities |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Issuance of common stock |
|
|
20,000 |
|
|
|
- |
|
Net Cash Provided by Financing Activities |
|
|
20,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Cash |
|
|
8,302 |
|
|
|
(536 |
) |
|
|
|
|
|
|
|
|
|
Cash, Beginning of Period |
|
|
574 |
|
|
|
1,614 |
|
|
|
|
|
|
|
|
|
|
Cash, End of Period |
|
$ |
8,876 |
|
|
$ |
1,078 |
|
|
|
|
|
|
|
|
|
|
Interest Paid |
|
$ |
- |
|
|
$ |
- |
|
Income Taxes Paid |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Non-Cash Transactions: |
|
|
|
|
|
|
|
|
Conversion of advance from affiliates to additional paid-in capital |
|
$ |
2,499 |
|
|
$ |
- |
|
The accompanying notes are an integral part of the financial statements.
19
ALADDIN INTERNATIONAL, INC
STATEMENTS OF CASH FLOWS
|
|
Year |
|
|
Year |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
June 30, |
|
|
June 30, |
|
||
|
|
2014 |
|
|
2013 |
|
||
|
|
|
|
|
|
|
||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
Net (loss) |
|
$ |
(2,108 |
) |
|
$ |
(1,877 |
) |
Adjustments to reconcile net loss to net cash (used in) operating activities: |
|
|
|
|
|
|
|
|
Non cash interest |
|
|
169 |
|
|
|
169 |
|
(Decrease) in accounts payable |
|
|
(50 |
) |
|
|
(50 |
) |
Decrease in escrow receivable |
|
|
949 |
|
|
|
- |
|
Net Cash (Used in) Operating Activities |
|
|
(1,040 |
) |
|
|
(1,758 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
- |
|
|
|
- |
|
Net Cash Provided by Investing Activities |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Financing Activities |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Cash |
|
|
(1,040 |
) |
|
|
(1,758 |
) |
|
|
|
|
|
|
|
|
|
Cash, Beginning of Period |
|
|
1,614 |
|
|
|
3,372 |
|
|
|
|
|
|
|
|
|
|
Cash, End of Period |
|
$ |
574 |
|
|
$ |
1,614 |
|
|
|
|
|
|
|
|
|
|
Interest Paid |
|
$ |
- |
|
|
$ |
- |
|
Income Taxes Paid |
|
$ |
- |
|
|
$ |
- |
|
The accompanying notes are an integral part of the financial statements.
20
ALADDIN INTERNATIONAL, INC
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
(References to the periods ended September 20, 2014 and 2013 are unaudited)
(1) Summary of Accounting Policies, and Description of Business
This summary of significant accounting policies of Aladdin International, Inc. (the Company) is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles in the United States of America and have been consistently applied in the preparation of the financial statements.
(a) Organization and Description of Business
The Company was incorporated under the laws of the state of Minnesota on May 3, 1972. The Company was a franchisee of fast food restaurants in Milwaukee, Wisconsin until the franchised restaurants were sold in October 1998. After the sale, the Company has been engaged in searching for a merger candidate that would expand the Companys business plan.
(b) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
(c) Per Share Information
Earnings (loss) per share of common stock is computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is not shown for periods in which the Company incurs a loss because it would be anti-dilutive.
(d) Basis of Presentation - Going Concern
The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplates continuation of the Company as a going concern. However, the Company has no business operations and has negative working capital and stockholders (deficits), which raise substantial doubt about its ability to continue as a going concern.
In view of these matters, realization of certain of the assets in the accompanying balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments relative to the recoverability of assets and classification of liabilities that might be necessary should the company be able to continue as a going concern. The Company has financed is operations primarily through the sale of stock and advances from a related party. There is no assurance that these advances will continue in the future.
Management has opted to commence filing with the Securities and Exchange Commission (SEC) and then to seek a business combination. Management believes that this plan provides an opportunity for the Company to continue as a going concern.
21
ALADDIN INTERNATIONAL, INC
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
(References to the periods ended September 20, 2014 and 2013 are unaudited)
(1) Summary of Accounting Policies, Continued
(e) Recent Accounting Pronouncements
There were various accounting standards and interpretations issued during 2014 and 2013, none of which are expected to a have a material impact on the Companys consolidated financial position, operations or cash flows.
(f) Risks and Uncertainties
The Company is subject to substantial business risks and uncertainties inherent in starting a new business. There is no assurance that the Company will be able to complete a business combination.
(g) Revenue Recognition
It is the Company's policy that revenue is recognized in accordance with SEC Staff Accounting Bulletin (SAB) No. 104, "Revenue Recognition." Under SAB 104, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable and collectability is reasonably assured.
(h) Cash and Cash Equivalents
The Company considers cash and cash equivalents to consist of cash on hand and demand deposits in banks with an initial maturity of 90 days or less.
(i) Fair Value of Financial Instruments
Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ASC Subtopic 825-10 ("ASC 825-10"), "Disclosures About Fair Value of Financial Instruments." ASC 825-10 requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. The carrying amount of the Company's cash, cash equivalents, accounts payable, and advance from affiliates approximate their estimated fair values due to their short-term maturities.
(j) Income Taxes
The Company records deferred taxes in accordance with Statement of Financial Accounting Standards (SFAS) ASC 740, "Accounting for Income Taxes." The statement requires recognition of deferred tax assets and liabilities for temporary differences between the tax bases of assets and liabilities and the amounts at which they are carried in the financial statements, the effect of net operating losses, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.
22
ALADDIN INTERNATIONAL, INC
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
(References to the periods ended September 20, 2014 and 2013 are unaudited)
(1) Summary of Accounting Policies, Continued
(l) Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. At June 30, 2014 and 2013, the Company had no amounts of cash or cash equivalents in financial institutions in excess of amounts insured by agencies of the U.S. Government.
(m) Unaudited Financial Statements
The balance sheet as of September 30, 2014, the statements of operations and cash flows for the three month periods ended September 30, 2014 and 2013, and the statement of stockholders (deficit) for the three month period ended September 30, 2014, have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures, normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted as allowed by such rules and regulations, and the Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three months ended September 30, 2014 are not necessarily indicative of results expected for the full year ending June 30, 2015. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at September 30, 2014 and 2013 and for all periods presented, have been made.
(n) Other
The Company has selected June 30 as its fiscal year end.
No advertising expense has been incurred.
The Company consists of one reportable business segment.
The Company has not entered into any leases.
(2) Income Taxes
Deferred income taxes arise from temporary timing differences in the recognition of income and expenses for financial reporting and tax purposes. The Companys deferred tax assets consist entirely of the benefit from net operating loss (NOL) carry forwards. The net operating loss carry forward if not used, will expire in various years through 2034, and is severely restricted as per the Internal Revenue code due to the change in ownership. The Companys deferred tax assets are offset by a valuation allowance due to the uncertainty of the realization of the net operating loss carry forwards. Net operating loss carry forwards may be further limited by other provisions of the tax laws. Our income tax returns are no longer subject to Federal tax examinations by tax authorities for years before June 30, 2009.
23
ALADDIN INTERNATIONAL, INC
NOTES TO FINANCIAL STATEMENTS
June 30, 2014 and 2013
(References to the periods ended September 20, 2014 and 2013 are unaudited)
The Companys deferred tax assets, valuation allowance, and change in valuation allowance are as follows:
Year Ending |
|
Estimated NOL Carry-forward |
|
NOL Expires |
|
Estimated Tax Benefit from NOL |
|
Valuation Allowance |
|
Change in Valuation Allowance |
|
Net Tax Benefit |
June 30, 2014 |
|
249,939 |
|
Various |
|
46,239 |
|
(46,239) |
|
(348) |
|
|
June 30, 2013 |
|
252,047 |
|
Various |
|
46,629 |
|
(46,629) |
|
(390) |
|
|
Income taxes at the statutory rate are reconciled to the Companys actual income taxes as follows:
Income tax benefit at statutory rate resulting from net operating loss carryforward |
|
(15.0)% |
State tax (benefit) net of Federal benefit |
|
(3.5)% |
Deferred income tax valuation allowance |
|
18.5% |
Actual tax rate |
|
|
(3) Common Stock
Pursuant to the Articles of Incorporation as amended, the Company is authorized to issue 10,000,000 common shares with no par value. There were 909,687 shares of common stock issued and outstanding at June 30, 2014 and 2013, and 4,548,435 shares of common stock issued and outstanding at September 30, 2014.
On February 14, 2008, the Company entered into a Stock Purchase Agreement, subject to certain contingencies, with Michael Friess and Sanford Schwartz. On July 16, 2014, Mr. Friess and Mr. Schwartz purchased 3,638,748 shares of the Companys common stock (representing 80% of the then-to-be outstanding shares of the Companys common stock) for $20,000, resulting in a change in control of the Company. In connection with the purchase of the common stock, the current members of the Companys Board of Directors resigned and Mr. Friess and Mr. Schwartz were elected to the Companys Board of Directors. Further, Mr. Friess was appointed CEO of the Company, and Mr. Schwartz was appointed CFO and Secretary.
(4) Related Party Transactions
The Company uses the offices of its President for its minimal office facility needs for no consideration. No provision for these costs has been provided since it has been determined that they are immaterial.
At June 30, 2014 and 2013, the Company owed a related party for expenses paid on behalf of the Company totaling $2,499 and $2,499, respectively. The advances are uncollateralized and are due on demand. Imputed interest for the years ended June 30, 2014 and 2013 of $169 and $169, respectively, was recorded with an increase to additional paid-in-capital. On July 16, 2014, Mr. Friess and Mr. Schwartz released the Company of debt totaling $2,499, resulting in a reclassification of the related party debt to additional paid-in capital.
(5) Subsequent Events
The Company has evaluated events subsequent to June 30, 2014 and through the date the financial statements were available to be issued, to assess the need for potential recognition or disclosure in this report.
On July 16, 2014, Mr. Friess and Mr. Schwartz purchased 3,638,748 shares of the Companys common stock (representing 80% of the then-to-be outstanding shares of the Companys common stock) for $20,000, resulting in a change in control of the Company. In connection with the purchase of the common stock, the current members of the Companys Board of Directors resigned and Mr. Friess and Mr. Schwartz were elected to the Companys Board of Directors. Further, Mr. Friess was appointed CEO of the Company, and Mr. Schwartz was appointed CFO and Secretary.
On July 16, 2014, Mr. Friess and Mr. Schwartz released the Company of debt totaling $2,499, resulting in a reclassification of the related party debt to additional paid-in capital.
24
ITEM 14. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
(a)
During the past two fiscal years and the interim period to date thereof, no independent accountant who was previously engaged to audit the Companys financial statements has resigned or declined to stand for election to serve as the Companys independent accountants nor has the Company dismissed any such accountant.
(b)
Schumacher & Associates, Inc. were engaged as independent accountants as of July 9, 2014.
ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS .
(a)
Index to Financial Statements see Item 13
(b)
Index to Exhibits.
3.1
Registrants Articles of Incorporation.
3.2
Registrants Bylaws.
4.1
Form of stock certificate for Registrants common stock.
10.1
Agreement between Registrant and Michael Friess and Sanford Schwartz dated February 14, 2008.
25
SIGNATURES
In accordance with Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Aladdin International, Inc. |
|
|
|
|
|
|
|
Date: October 24, 2014 |
By |
/s/ Michael Friess |
|
|
Michael Friess, President and Chief Executive Officer |
26
Index of Exhibits
3.1
Registrants Articles of Incorporation.
3.2
Registrants Bylaws.
4.1
Form of stock certificate for Registrants common stock.
10.1
Agreement between Registrant and Michael Friess and Sanford Schwartz dated February 14, 2008.
27
EXHIBIT 3.1
ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL, INC.
I, the undersigned, being of full age, for the purpose of organizing a corporation under the Minnesota Business Corporation Act, being Chapter 300 of the Law of Minnesota for the year 1933, end acts amendatory thereto do hereby adept, sign and acknowledge the following Articles of Incorporation.
ARTICLE I.
The name of this Corporation shall be Aladdin International, Inc.
ARTICLE II.
Purpose
The Corporation has general business purposes.
ARTICLE III.
Power
The Corporation shall possess all powers provided or not prohibited by law or by the Statutes of the State of Minnesota, and shall, in addition and without limitation to all other powers, have the power to acquire, hold mortgage, pledge or dispose of the shares, bonds, securities and ether evidence of indebtedness of any domestic or foreign corporation.
ARTICLE IV.
Duration
The duration of this Corporation shall be perpetual,
ARTICLE V.
Registered Office
The location and post office address of this Corporation's registered office in the State of Minnesota shall be 1068 I.D.S. Center, 80 South Eighth Street, Minneapolis, Minnesota 55402.
ARTICLE VI.
Stock
The authorized shares of stock of the Corporation, shall be 1,000,000 shares of common stock, having a par value of $0.05 per share.
The directors of the Corporation shall have authority to accept or reject subscriptions for, to allot and authorize the issuance of shares of common stock.
In addition, the directors shall have the authority to issue debt securities of any nature whatsoever and to grant options, warrants or other conversion rights for the purchase of, or with respect to, any of the Corporation's securities; and to determine the terms, provisions and conditions thereof.
No shareholder of the Corporation shall have any preemptive or other rights to acquire the common stock or any other securities.
of the Corporation. At each meeting of the shareholders, and with respect to any natter upon which shareholders have a right to vote, each holder of record of common stock shall be entitled to one (1) vote for each share of common stock so held. No shareholder entitled to vote shall have or exercise the right to cumulate his votes in electing directors and there shall be no cumulative voting for any purpose whatsoever. Such right to vote shall be subject to the previsions of the By-Laws of the Corporation as from time to time amended with respect to closing the transfer book and fixing a record date for the determination of shareholders entitled to vote.
ARTICLE VII.
Minimum Capital
The amount of stated capital with which the Corporation will begin business shall be a minimum of One Thousand Dollars ($1,000).
ARTICLE. VIII.
First Directors
The name and post office address of the first director of the Corporation is as follows;
Walter E. Sanford - |
P. O. Box 14 |
|
Milltown, Wisconsin 54859 |
The first director shall serve until such time as his successors,
if any, have been duly elected and qualified, but the first term of the first director shall not extend beyond one (1) year from the date of incorporation. Except for the first term of the first director, the number, qualification, term of office, manner of election, powers and duties of the directors shall be specifically. Provided by the By-Laws or by law, all powers of the Corporation shall be exercised by its directors.
ARTICLE IX.
Incorporators
The name and post office address of the incorporator is as follows:
Walter E. Sanford - |
P. 0. Box 14 |
|
Milltown, Wisconsin 54859 |
ARTICLE. X.
By-Laws
The board of Directors of the Corporation shall adopt such By-Laws as are suitable for the proper regulation of the Corporation's affairs, and such By-Laws shall be of full force and effect unless and until changed or repealed by a majority vote of the shareholders present and represented at any annual resting or at any special meeting called for such purpose, or unless and until amended by the Board of Directors of the Corporation by such procedure as they may provide in the By-Laws of the Corporation.
ARTICLE XI.
Powers of Majority
In addition to the other powers of the majority of the shareholders, the affirmative vote of the holders of a majority. of the voting power .of all shareholders entitled to vote on the issue shall be sufficient to authorize (1) an amendment to or the restating of the Articles of Incorporation of the Corporation; or (2) the sale, lease, exchange or other disposition of all, or substantially all of the property and assets cf. the Corporation, including its good will; or (3) the adoption of an agreement of consolidation or merger.
IN WITNESS WHEREOF, I have hereunto set my hand seal this 6th day of May, 1972.
/s/ Walter E. Sanford
Walter E. Sanford
In the presence of:
/s/ Victoria A. Inget
CERTIFICATE OF AMENDMENT OF ARTICLES OF INCORPORATION OR
ALADDIN INTERNATIONAL, INC.
The undersigned, Jan F. Ebbert, being the President and Secretary of Aladdin International, Inc., a corporation subject to the provisions of Chapter 301, Minnesota Statutes, known as the Minnesota Business Corporation Act, does hereby certify that the resolution as hereinafter set forth was adopted at a meeting of the shareholders of said corporation, notice of such meeting, proposal to amend and nature of such proposal having been mailed to each shareholder entitled to vote thereon at least ten days prior to such meeting, held at The Northstar Center, in the city of Minneapolis, County of Hennepin, as designated in such notice, on the 27th day of October, 1981, by a majority vote of said shareholders entitled to vote and presented in person or proxy:
"Resolved that the first sentence of Article VI of the articles of incorporation of Aladdin International, Inc. be, and the same hereby is amended to read as follows:
Article VI
The authorized shares of stock of the Corporation shall be 3,000,000 shares of common stock, having a par value of $0.05 per share."
IN WITNESS WHEREOF, the undersigned has subscribed his name this 8 th day of November, 1981.
/s/ Jan .F. Ebbert
Jan .F. Ebbert
President and Secretary
ARTICLES OF AMENDMENT
AND
ELECTION TO BECOME
GOVERNED BY CHAPTER 302A
ALADDIN INTERNATIONAL, INC.
The undersigned, President and Secretary of Aladdin Inter-national, Inc., a corporation subject to the provisions of Minnesota Statutes Chapter 301, does hereby certify that the resolutions as hereinafter set forth were duly adopted at a meeting of the shareholders of said corporation held at the Sister Elizabeth Kenny Room, Concourse level, IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402, on December 21, 1983, notice of the time and place of such meeting and the proposals to be considered at such meeting having been mailed to sash shareholder entitled to vote thereon at least 10 days prior to such meeting, and that such resolutions were adopted by greater than the required majority of the 1,165,923 shares entitled to vote, such vote being 604,866 shares in favor and 300 shares against,
RESOLVED, that Aladdin International, Inc. a corporation subject to the provisions of Chapter 301 of Minnesota Statutes, hereby elects to be governed by the provisions of Minnesota Statutes Chapter 302A (the "Act") and accepts all of the duties and responsibilities set forth therein.
RESOLVED FURTHER, that this Corporation shall enact and hereby does enact the Amended and Restated Articles of Incorporation (the "Restated Articles") in the form attached hereto [and to this Certificate] as Exhibit A to conform to the requirements of the Act, which Restated Articles supersede in their entirety the Articles of Incorporation of the Corporation dated May 1, 1972, and all amendments thereto.
RESOLVED FURTHER, that the President of this Corporation is authorized and directed to take such other action as shall be necessary or appropriate to carry out the purpose of the foregoing resolutions.
/s/ Jan F. Ebbert
Jan F. Ebbert, President
(SEAL)
ATTEST
/s/ Daniel B. OLeary
Daniel B. OLeary, Secretary
EXHIBIT A
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL INC.
Aladdin International, Inc., having elected to b. governed by Minnesota Statutes, Chapter 302A, hereby adopt the following Amended and Restated Articles of Incorporation:
ARTICLE I
Name: The name of this Corporation shall be Aladdin International, Inc.
ARTICLE II
Registered Office, The address of the Corporation's registered office is 7008 Sandell Avenue, Edina, Minnesota 55435.
ARTICLE III
Authorized Shares : The authorized capital stock of this Corporation shall consist of Ten Million (10,000,000) shares, which share shall be without par value: provided, however, that such shares shall have a par value of one cent per share solely for the purpose of a statute or regulation imposing a tax or fee based upon the capitalization of a corporation.
3.1 The Board of Directors may, from time to time, establish by resolution, different classes or series of shares and may fix the rights and preferences of said shares in any class or series.
3.2 The Board of Directors shall have the authority to issue shares of a class or series to holders of shares of another class or series effectuate share dividends, splits, or conversion of its outstanding shares.
3.3 Each share of this Corporation's Common Stock, par value $.05 per share, which is issued and outstanding as of the date of these restated Articles, shall be reclassified as and changed into one fully paid and non-assessable share of Common stock without par value, which shall be included in the 10,000,000 shares herein authorized.
ARTICLE IV
Certain Shareholder tight , Shareholder shall have no preemptive rights to purchase, subscribe for or otherwise acquire any new or additional securities of the Corporation. No shareholder shall be entitled to any cumulative voting rights. The shareholders shall take action by the affirmative vote of the holders of a majority of the voting power of all voting shares, except where a larger proportion is required by law.
ARTICLE V
written Action by Board , M action required or permitted to be taken by the Board of Directors of this Corporation may be taken by written action signed by the number of directors that would be required to take the same action at a meeting of the Board at which all director are present, except as to those matters requiring shareholder approval, in which case the written action shall be signed by all members of the Board of Directors then in office.
ARTICLE VI
Amendment: The foregoing shall constitute an amendment to and a restatement of the Articles of this Corporation in their entirety and in all respects supersede the original Articles of Incorporation of this Corporation and all amendments thereto.
THIS INSTRUMENT DRAFTED BY
Joel H. Gottesman, Eng.
Briggs and Morgan
2400 IDS Center
Minneapolis, Minnesota 55402
CERTIFICATE OF AMENDMENT
TO THE
AMENDED AND RESTATED ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL, INC.
The undersigned, the President of Aladdin international, Inc., a corporation subject to the provisions of Minnesota Statutes, Chapter 302A do hereby certify that at an annual meeting of the shareholders of the corporation duly held on February 23, 1988, In accordance with Minnesota Statutes Section 302A.431 and 302A.43S, the following resolutions providing for the amendment of the Amended and Restated Articles of Incorporation of said corporation were duly adopted:
RESOLVED: That the Amended and Restated Articles of Incorporation of this corporation shall be amended by the amendment and restatement or Article 11 thereof as follows:
Authorized Shares. This Corporation shall have the authority to issue an aggregate of ten million (10,000,000) shares of Common Stock, each without par value. Such shares shall be designated as this Corporation's "Common Stock"; provided, however, that such shares shall have a par value of one cent per share solely for the purpose of a statute or regulation Imposing a tax or fee based upon the capitalization of a corporation.
In addition, this Corporation shall have the authority to issue an aggregate of one million (1,000,000) shares of Preferred Stock, which may be Issued in one or more series as determined from time to time by the Board of Directors. Such shares shall be designated as the "Preferred Stock, Series _____." The shares of Preferred Stock of any series authorized for issuance by the board of Directors shall be senior to the Common Stock with respect to any distribution (as such term is defined in Section 302A.011, Subd. 10, Minnesota Statutes) If so designated by the Board of Directors upon issuance of the shares of that series. The Board of Directors is hereby granted the express authority to fix by resolution any other designations, powers, preferences, rights, qualifications, limitations or restrictions with respect to any particular series of Preferred Stock prior to Issuance thereof.
3.1 Except as otherwise required by law, the holders of the shares of Common Stock shall have the sole voting rights of this Corporation.
3.2 There shall be no cumulative voting by the holders of the Common Stock.
3.3 The shareholders shall take action by the affirmative vote of the holders of a majority of the voting power of the shares represented and voting at a duly held meeting, except where the affirmative vote of a greater number of the affirmative vote of a majority of the voting power of all voting shares Is required by statute and except where the holders of a class or series are entitled
by statute to vote as a class or series whether or not such holders are otherwise entitled to vote.
3.4 The shareholders of this Corporation shall have no preemptive rights to subscribe for or otherwise acquire any new or additional shares of stock of this Corporation of any class whether now authorized or authorized hereafter, or any options or warrants to purchase, subscribe for or otherwise acquire any such new or additional shares of any class, or any shares, bonds, notes, debentures, or other securities.
3.5 The Board of Directors shall have the authority to Issue shares of a class or series to holders of shares of another class or series to effectuate share dividends, splits, or conversion of its outstanding shares.
3.6 The shares of this Corporation's Common Stock originally issued as Common Stock, par value 8.05 per share, but reclassified as and changed into fully paid and non-assessable shares of Common Stock, without par value, in a one share for one share exchange, pursuant to Amendment and Restatement of the Articles of Incorporation on December 21, 1983, shall be and are a part of the 10,000,000 shares of Common Stock herein authorized.
RESOLVED: That the Restated Articles of Incorporation of this corporation shall be amended by the addition of a new Article VII, as follows:
ARTICLE VII.
Indemnification and Limitation of Liability . In addition to, and not by way of limitation of, the powers granted to the Board of Directors by Chapter 30A, Minnesota Statutes, the Board of Directors of this Corporation shall have the powers and authority to adopt an Indemnity plan and to purchase and maintain Insurance for officers, directors, employees and agents against liability asserted against them and Incurred In any such capacity or arising out of their status as such, and to enter into contracts for Indemnification of such persons, to the fullest extent permissible under the provisions of Chapter 302A, Minnesota Statutes. Except as expressly provided In Section 302A.251, Subd. 4, Minnesota Statutes, a member of the Board of Directors of this Corporation shall have no personal liability to this corporation or to the shareholders for monetary damages for breach of fiduciary duty as a member of the Board of Directors. Amendment or repeal of this Article VII shall not adversely affect any right of indemnification or limitation of liability of an officer, director, employee or agent with respect to any liability or alleged liability arising out of any act or omission occurring prior to such amendment or repeal.
IN WITNESS WHEREOF, I have subscribed my name this 7 day of September, 1988.
/ s/ Jan F. Ebbert, Pres.
Jan F. Ebbert
President
ATTEST
/s/ Patricia J. Barry
9-7-88
CERTIFICATE OF CORRECTION
AND
CERTIFICATE OF AMENDMENT
TO THE
AMENDED AND RESTATED ARTICLES OF INCOPORATION
OF ALADDIN INTERNATIONAL, INC.
The, undersigned, the President of Aladdin International, Inc., a corporations subject to the provisions of Minnesota Statutes, Chapter 302A, hereby certifies the following corrections to the Certificated of Amendment to the Amended and Restated Articles of Incorporation (the Certificate of Amendment), which Certificate of Amendment was filed of record with the Secretary of State of Minnesota on September 12, 1988:
1.
The first full paragraph of the Certificate of Amendment shall be restated as follow, to change the reference therein from Article II to Article III.
RESOLVED: That the Amended and Restated Articles of Incorporation of the corporation shall be amended by the Amendment and Restatement of Article III as follows:
2.
The reference to Chapter 30A in the second line of new Article VII shall be changed to Chapter 302A.
IN WITNESS WHERE OF, I have subscribed my name this 26 th day of September, 1988.
/ s/ Jan F. Ebbert
Jan F. Ebbert
President
ATTEST
/s/ K Nart
/s/ Patricia J. Barry
ARTICLES OF AMENDMENT
AND
ELECTION TO BECOME
GOVERNED BY CHAPTER 302A
ALADDIN INTERNATIONAL, INC.
The undersigned, President and Secretary of Aladdin International, Inc., a corporation subject to the provisions of Minnesota Statutes Chapter 301, does hereby certify that the resolutions as hereinafter set forth were duly adopted at a meeting of the shareholders of said corporation held at the Sister Elizabeth Kenny Room, Concourse level, IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402, on December 21, 1983, notice of the time and place of such meeting and the proposals to be considered at such meeting having been mailed to each shareholder entitled to vote thereon at least 10 days prior to such meeting, and that such resolutions were adopted by greater than the required majority of the 1,165,923 shares entitled to vote, such vote being 604,866 shares in favor and 300 shares against:
RESOLVED, that Aladdin International, Inc. a corporation subject to the provisions of Chapter 301 of Minnesota Statutes, hereby elects to be governed by the Provisions of Minnesota Statutes Chapter 302A (the "Act") and accepts all of the duties and responsibilities set forth therein.
RESOLVED FURTHER, that this Corporation shall enact and hereby does enact the Amended and Restated Articles of Incorporation (the "Restated Articles") in the form attached hereto [and to this Certificate] as Exhibit A to conform to the requirements of the Act, which Restated Articles supersede in their entirety the Articles of Incorporation of the Corporation dated May 1, 1972, and all amendments thereto.
RESOLVED FURTHER, that the President of this Corporation is authorized and directed to take such other action as shall be necessary or appropriate to carry out the purpose of the foregoing resolutions.
/ s/ Jan F. Ebbert
Jan F. Ebbert, Presidnet
ATTEST
/s/ Daniel B. OLeary
Daniel B. OLeary, Secretary
EXHIBIT A
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL INC.
Aladdin International, Inc., having elected to be governed by Minnesota Statutes, Chapter 302A, hereby adopts the following Amended and Restated Articles of Incorporation:
ARTICLE I
Name : The name of this Corporation shall be Aladdin International, Inc.
ARTICLE II
Registered Office : The address of the Corporation's registered office is 7008 Sandell Avenue, Edina, Minnesota 55435.
ARTICLE III
Authorized Shares : The authorized capital stock of this Corporation shall consist of Ten Million (10,000,000) shares, which shares shall be without par value; provided, however, that such shares shall have a par value of one cent per share solely for the purpose of a statute or regulation imposing a tax or fee based upon the capitalization of a corporation.
3.1 The Board of Directors may, from time to time, establish by resolution, different classes or series of shares and may fix the rights and preferences of said shares in any class or series.
3.2 The Board of Directors shall have the authority to issue shares of a class or series to holders of shares of another class or series to effectuate share dividends, splits, or conversion of its outstanding shares.
3.3 Each share of this Corporation's Common Stock, par value $.05 per share, which is issued and outstanding as of the date of these Restated Articles, shall be reclassified as and changed into one fully paid and non-assessable share of Common Stock without par value, which shall be included in the 10,000,000 shares herein authorized.
CERTIFICATE OF AMENDMENT
TO THE
AMENDED AND RESTATED ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL, INC.
The undersigned, the President of Aladdin International, Inc., a corporation subject to the provisions of Minnesota Statutes, Chapter 302A do hereby certify that at an annual meeting of the shareholders of the corporation duly held on February 23, 1988, in accordance with Minnesota Statutes Section 302A.431 and 302A.435, the following resolutions providing for the amendment of the Amended and Restated Articles of Incorporation of said corporation were duly adopted:
RESOLVED: That the Amended and Restated Articles of Incorporation of this corporation shall be amended by the amendment and restatement of Article II thereof as follows:
Authorized Shares. This Corporation shall have the authority to issue an aggregate of ten million (10,000,000) shares of Common Stock, each without par value. Such shares shall be designated as this Corporation's "Common Stock"; provided, however, that such shares shall have a par value of one cent per share solely for the purpose of a statute or regulation imposing a tax or fee based upon the capitalization of a corporation.
In addition, this Corporation shall have the authority to issue an aggregate of one million (1,000,000) shares of Preferred Stock, which may be issued in one or more series as determined from time to time by the Board of Directors. Such shares shall be designated as the "Preferred Stock, Series _______." The shares of Preferred Stock of any series authorized for issuance by the board of Directors shall be senior to the Common Stock with respect to any distribution (as such term is defined in Section 302A.011, Subd. 10, Minnesota Statutes) if so designated by the Board of Directors upon issuance of the shares of that series. The Board of Directors is hereby granted the express authority to fix by resolution any other designations, powers, preferences, rights, qualifications, limitations or restrictions with respect to any particular series of Preferred Stock prior to issuance thereof.
3.1 Except as otherwise required by law, the holders of the shares of Common Stock shall have the sole voting rights of this Corporation.
3.2 There shall be no cumulative voting by the holders of the Common Stock.
3.3 The shareholders shall take action by the affirmative vote of the holders of a majority of the voting power of the shares represented and voting at a duly held meeting, except where the affirmative vote of a greater number of the affirmative vote of a majority of the voting power of all voting shares is required by statute and except where the holders of a class or series are entitled
by statute to vote as a class or series whether or not such holders are otherwise entitled to vote.
3.4 The shareholders of this Corporation shall have no preemptive rights to subscribe for or otherwise acquire any new or additional shares of stock of this Corporation of any class whether now authorized or authorized hereafter, or any options or warrants to purchase, subscribe for or otherwise acquire any such new or additional shares of any class, or any shares, bonds, notes, debentures, or other securities.
3.5 The Board of Directors shall have the authority to issue shares of a class or series to holders of shares of another class or series to effectuate share dividends, splits, or conversion of its outstanding shares,
3.6 The shares of this Corporation's Common Stock originally issued as Common Stock, par value $.05 per share, but reclassified as and changed into fully paid and non-assessable shares of Common Stock, without par value, in a one share for one share exchange, pursuant to Amendment and Restatement of the Articles of Incorporation on December 21, 1983, shall be and are a part of the 10,000,000 shares of Common Stock herein authorized.
RESOLVED: That the Restated Articles of Incorporation of this corporation shall be amended by the addition of a new Article VII, as follows:
ARTICLE VII.
Indemnification and Limitation of Liability . In addition to, and not by way of limitation of, the powers granted to the Board of Directors by Chapter 30A, Minnesota Statutes, the Board of Directors of this Corporation shall have the powers and authority to adopt an indemnity plan and to purchase and maintain insurance for officers, directors, employees and agents against liability asserted against them and incurred in any such capacity or arising out of their status as such, and to enter into contracts for indemnification of such persons, to the fullest extent permissible under the provisions of Chapter 302A, Minnesota Statutes. Except as expressly provided in Section 302A.2F1, Subd. 4, Minnesota Statutes, a member of the Board of Directors of this Corporation shall have no personal liability to this corporation or to the shareholders for monetary damages for breach of fiduciary duty as a member of the Board of Directors. Amendment or repeal of this Article VII shall not adversely affect any right of indemnification or limitation of liability of an officer, director, employee or agent with respect to any liability or alleged liability arising out of any act or omission occurring prior to such amendment or repeal.
IN WITNESS WHEREOF, I have subscribed my name this 7 day of September, 1988.
/ s/ Jan F. Ebbert, Pres.
Jan F. Ebbert
President
ATTEST
/s/ Patricia J. Barry
9-7-88
CERTIFICATE OF CORRECTION
AND
CERTIFICATE OF AMENDMENT
TO THE
AMENDED AND RESTATED ARTICLES OF INCORPORATION
OF
ALADDIN INTERNATIONAL, INC.
The, undersigned, the President of Aladdin International, Inc., a corporation subject to the provisions of Minnesota Statutes, Chapter 302A, hereby certifies the following corrections to the Certificate of Amendment to the Amended and Restated Articles of Incorporation (the "Certificate of Amendment"), which Certificate of Amendment was filed of record with the Secretary of State of Minnesota on September 12, 1988:
1.
The first full paragraph of the Certificate of Amendment shall be restated as follows, to change the reference therein from Article II to Article III.
RESOLVED: That the Amended and Restated Articles of Incorporation of this corporation shall be amended by the Amendment and Restatement of Article III thereof as follows:
2.
The reference to "Chapter 30A" in the second line of new Article VII shall be changed to "Chapter 302A".
IN WITNESS WHEREOF, I have subscribed my name this 26 th day of September, 1988.
/ s/ Jan F. Ebbert
Jan F. Ebbert
President
ATTEST
/s/ K Nart
/s/ Patricia J. Barry
EXHIBIT 3.2
CERTIFICATE OF AMENDMENT
TO THE
RESTATED BYLAWS OF
ALADDIN INTERNATIONAL, INC.
I, the undersigned, the President of Aladdin International, Inc., a corporation subject the provisions of Minnesota Statutes, Chapter 302A, do hereby certify that at an annual meeting of the shareholders of the corporation duly held on February 23, 1988, in accordance with Minnesota Statutes Sections 302A.431 and 302A.435, the following resolutions providing for the amendment of the Restated Bylaws of said corporation were duly adopted:
RESOLVED: That Article III of the Restated Bylaws of this corporation shall be amended by the amendment and restatement of Section 3.02 and the addition of a new Section 3.09, as follows:
Section 3.02. Number, Qualifications and Term of Office . Until the first meeting of shareholders, the directors shall be the persons named as directors in the Articles of Incorporation. Thereafter, the number of directors shall be the number last elected by the shareholders, subject to increase by majority vote of the Board of Directors; provided, that the number of directors shall not be greater than seven (7). Directors need not be shareholders. Each of the directors shall hold office until the regular meeting of the shareholders next held after his election, until his successor shall have been elected and shall qualify, or until he shall resign or shall have been removed as hereinafter provided.
Section 3.09 . Amendments to Bylaws . These Bylaws may be amended or altered by the vote of a majority of the Board of Directors present at any meeting, provided that notice of such proposed amendments shall have been given in the notice of such meeting. Such authority of the Board of Directors is subject to the power of the shareholders to change or repeal such Bylaws, as provided by statute, and subject to any other limitations on such authority prescribed by statute.
IN WITNESS WHEREOF, I have subscribed my name this 7 day of September, 1988.
/ s/ Jan F. Ebbert
Jan F. Ebbert
ATTEST
/s/ Patricia J. Barry
RESTATED BYLAWS
OF
ALADDIN INTERNATIONAL, INC.
ARTICLE 1.
OFFICES, CORPORATE SEAL
AND SHAREHOLDER CONTROL AGREEMENT
Section 1.01. Registered and Other Offices . The registered office of the corporation in Minnesota shall be that set forth in the Articles of Incorporation or in the most recent amendment of the Articles of Incorporation or statement of the Board of Directors filed with the Secretary of State of Minnesota changing the registered office in the manner prescribed by law. The corporation may have such other offices, within or without the State of Minnesota, as the Board of Directors shall, from time to time, determine.
Section 1.02. Corporate Seal . If so directed by the Board of Directors, the corporation may use a corporate seal. The failure to use such seal, however, shall not affect the validity of any documents executed on behalf of the corporation. The seal need only include the word "seal", but it may also include, at the discretion of the Board, such additional wording as is permitted by law.
Section 1.03. Shareholder Control Agreement . In the event of any conflict or inconsistency between these Bylaws, or any amendment thereto, and any shareholder control agreement, whenever adopted, such shareholder control agreement shall govern.
ARTICLE II.
MEETINGS OF SHAREHOLDERS
Section 2.01. Time and Place of Meetings . Regular or special meetings of the shareholders, if any, shall be held on the date and at the time and place fixed by the Chief Executive Officer, the Chairman of the Board, or the Board, except that a regular or special meeting called by, or at the demand of a shareholder or shareholders, pursuant to Minnesota Statutes, Section 302A.431, Subd. 2, shall be held in the county Where the principal executive office is located.
Section 2.02. Regular Meetings . At any regular meeting of the shareholders there shall be an election of qualified successors for directors Who serve for an indefinite term or whose terms have expired or are due to expire within six months after the date of the meeting. Any business appropriate for action by the shareholders may be transacted at a regular meeting. No meeting shall be considered a regular meeting unless specifically designated as such in the notice of meeting or unless all the shareholders are present in person or by proxy and none of them objects to such designation. Regular meetings may be held no more frequently than once per year.
Section 2.03. Demand by Shareholders . .Meetings may be demanded by a shareholder or shareholders pursuant to the provisions of Minnesota Statutes, Sections 302A.431, Subd. 2, and 302A.433, Subd. 2, respectively.
Section 2.04. Quorum ; Adjourned Meetings. The holders of a majority ty of the voting power of the shares entitled to vote at a meeting constitute a quorum for the transaction of business; said holders may be present at the meeting either in person or by proxy. If a quorum is present when a duly called or held meeting is convened, the shareholders present may continue to transact business until adjournment, even though withdrawal of shareholders originally present leaves less than the proportion or number otherwise required for a quorum. In case a quorum shall not be present in person or by proxy at a meeting, those present in person or by proxy may adjourn to such day as they shall, by majority vote, agree upon, and a notice of such adjournment shall be mailed to each shareholder entitled to vote at least five (5) days before such adjourned meeting. If a quorum is present in person or by proxy, a meeting may be adjourned from time to time without notice, other than announcement at the meeting. At adjourned meetings at which a quorum is present in person or by proxy, any business may be transacted at the meeting as originally noticed.
Section 2.05. Voting . At each meeting of the shareholders, every shareholder having the right to vote shall be entitled to vote either in person or by proxy. Unless otherwise provided by the Articles of Incorporation or a resolution of the Board of Directors filed with the Secretary of State, each shareholder shall have one vote for each share held. Upon demand of any shareholder, the vote upon any question before the meeting shall be by ballot.
Section 2.06. Notice of Meetings. Notice of all meetings of shareholders shall be given to every holder of voting shares, except where the meeting is an adjourned meeting and the date, time and place of the meeting were announced at the time of adjournment. The notice shall be given at least ten (10), but not more than sixty (60) days before the date of the meeting, except that written notice of a meeting at which an agreement of merger is to be considered shall be given to all shareholders, whether entitled to vote or not, at least fourteen (14) days prior thereto. Every notice of any special meeting shall state the purpose or purposes for which the meeting has been called, and the business transacted at all special meetings shall be confined to the purpose stated in the call, unless all of the shareholders are present in person or by proxy and none of them objects to consideration of a particular item of business.
Section 2.07. Waiver of Notice. A shareholder may waive notice of any meeting of shareholders. A waiver of notice by a shareholder entitled to notice is effective whether given before, at or after the meeting and whether given in writing, orally or by attendance.
Section 2.08. Authorization Without a Meeting. Any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting as authorized by law.
Section 2.09. Record Date. The Board of Directors may fix a time, not exceeding sixty (60) days preceding the date of any meeting of shareholders, as a record date for the determination of the shareholders entitled to notice of and to vote at such meeting, notwithstanding any transfer of shares on the books of the corporation after any record date so fixed. The Board of Directors may close the books of the corporation against the transfer of shares during the whole or any part of such period. If the Board of Directors fails to fix a record date for the determination of the shareholders entitled to notice of and to vote at any meeting of the shareholders, the record date shall be the twentieth (20th) day preceding the date of such meeting.
ARTICLE III.
DIRECTORS
Section 3.01. General Purposes . Except as authorized by the shareholders pursuant to a shareholder control agreement of unanimous affirmative vote, the business and affairs of the corporation shall be managed by or shall be under the direction of the Board of Directors.
Section 3.02. Number, Qualifications and Term of Office . Until the first meeting of shareholders, the directors shall be the persons named as directors in the Articles of Incorporation. Thereafter, the number of directors shall be the number last elected by the shareholders. Directors need not be shareholders. Each of the directors shall hold office until the regular meeting of the shareholders next held after his election, until his successor shall have been elected and shall qualify, or until he shall resign or shall have been removed as hereinafter provided.
Section 3.03. Board Meetings; Place and Notice . Meetings of the Board of Directors may be held from time to time at any place within or without the State of Minnesota that the Board of Directors may designate. In the absence of designation by the Board of Directors, Board meetings shall be held at the principal executive office of the corporation, except as may be otherwise unanimously agreed orally or in writing or by attendance. Any director may call a Board meeting by giving two (2) days notice to all directors of the date and time of the meeting. The notice need not state the purpose of the meeting. Notice may be given by mail, telephone, telegram, or in person. If the meeting schedule is adopted by the Board, or if the date and time of a Board meeting has been announced at a previous meeting, no notice is required.
Section 3.04. Waiver of Notice . A director may waive notice of a meeting of the Board. A waiver of notice by a director is effective, whether given before, at or after the meeting and whether given in writing, orally or by attendance.
Section 3.05. Quorum . A majority of the directors currently holding office is a quorum for the transaction of business.
Section 3.06. Vacancies . Vacancies on the Board resulting from the death, resignation or removal of a director may be filled by the affirmative vote of a majority of the remaining directors, even though less than a quorum. Each director elected under this Section to fill a vacancy holds office until a qualified successor is elected by the shareholders at the next regular or special meeting of the shareholders.
Section 3.07. Committees . The Board establish committees in the manner provided members need not be directors.
Section 3.08. Absent Directors. A director may give advance written consent or opposition to a proposal to be acted on at a Board meeting. If the director is not present at the meeting, consent or opposition to a proposal does not constitute presence for purposes of determining the existence of a quorum, but consent or opposition shall be counted as a vote in favor of, or against, the proposal and shall be entered in the minutes or other record of action of the meeting if the proposal acted on at the meeting is substantially the same or has substantially the same effect as the proposal which the director has consented or objected.
ARTICLE IV.
OFFICERS
Section 4.01. Number . The officers of the corporation shall consist of a Chief Executive Officer and a Chief Financial Officer. The Chief Executive Officer shall preside at all meetings of the shareholders and directors and shall have such other duties as may be prescribed from time to time by the Board of Directors. The Chief Executive Officer shall also see that all orders and resolutions of the Board are carried into effect. The Chief Executive Officer and Chief Financial Officer shall have such other duties as are prescribed by statute. The Board may elect or appoint any other officers it deems necessary for the operation and management of the corporation, each of whom shall have the powers, rights, duties, responsibilities and terms of office determined by the Board from time to time. Any number of offices or functions of those offices may be held or exercised by the same person. If specific persons have not been elected as President or Secretary, the Chief Executive Officer may execute instruments or documents in those capacities. If a specific person has not been elected to office of Treasurer, the Chief Financial Officer of the corporation may sign instruments or documents in that capacity.
Section 4.02. Election and Term of Office . The Board of Directors shall from time to time elect a Chairman of the Board of Directors, Chief Executive Officer and Chief Financial Officer and any other officers or agents the Board deems necessary. Such officers shall hold their offices until their successors are elected and qualified.
Section 4.03. Delegation of Authority . An officer elected or appointed by the Board may delegate some or all of the duties or powers of his office to other persons, provided that such delegation is in writing.
Section 4.04. Compensation of Officers . An officer shall be entitled only to such compensation as shall be established by written contract or agreement duly approved by or on behalf of the corporation, or established or approved by resolution of the Board of Directors. Absent such written contract, agreement or resolution of the Board of Directors, no officer shall have a cause of action against the corporation to recover any amount due or alleged to be due as compensation for services in his or her capacity as an officer of the corporation.
ARTICLE V.
SHARES AND THEIR TRANSFER
Section 5.01. Certificates for Shares . Every shareholder of corporation shall be entitled to a certificate, to be in such form as prescribed by law and adopted by the Board of Directors, certifying the number of shares of the corporation owned by him. The certificates shall be numbered in the order in which they are issued and shall be signed by the Chief Executive Officer and Chief Financial Officer; provided, however, that when the certificate is signed by a transfer agent or registrar, the signatures of '~any of such officers upon the certificate may be facsimiles, engraved or printed thereon, if authorized by the Board of Directors. Such certificate shall also have typed or printed thereon 'such legend as may be required by any shareholder control agreement. Every certificate surrendered to the corporation for exchange or transfer shall be cancelled, and no new certificate or certificates shall be issued in exchange for any existing certificate until such existing certificate shall have been so cancelled.
Section 5.02. Transfer of Shares . Transfer of shares on the books of the corporation may be authorized only by the shareholder named in the certificate, or the shareholders legal representative, or the shareholder's duly authorized attorney in fact, and upon surrender of the certificate or the certificates for such shares. The corporation may treat, as the absolute owner of shares of the corporation, the person or persons in whose name or names the shares are registered on the books of the corporation.
Section 5.03. Lost Certificates . Any shareholder claiming that a certificate for shares has been lost, destroyed or stolen shall make an affidavit of that fact in such form as the Board of Directors shall require and shall, if the Board of Directors so requires, give the corporation a sufficient indemnity bond, in form, in an amount, and with one or more sureties satisfactory to the Board of Directors, to indemnify the corporation against any claims which may be made against it on account of the reissue of such certificate. A new certificate shall then be issued to said shareholder for the same number of shares as the one alleged to have been destroyed, lost or stolen.
CERTIFICATION
I, Daniel B. OLeary, do hereby certify that I am the duly elected, qualified or acting Secretary of Aladdin International, Inc., a corporation organized under the laws of the State of Minnesota, and that the foregoing is a true and correct copy of the Bylaws adopted at a meeting of the Board of Directors thereof convened and held in accordance with law and the Articles of Incorporation of said corporation on December 21, 1983.
/s/ Daniel B. OLeary
Secretary
EXHIBIT 4.1
EXHIBIT 10.1
STOCK PURCHASE AGREEMENT
This STOCK PURCHASE AGREEMENT (" Agreement ") is entered into on February 14, 2008, by and between Michael Friess and Sanford Schwartz, Colorado residents (" Buyers "), and Aladdin International, Inc., a Minnesota corporation (the " Company ").
RECITALS
A.
The Company has determined that it is in the Company and its shareholders' best interests to (i) sell the Company's real estate in Edina, Minnesota (the " Real Estate ") and distribute the net proceeds of the sale, less distribution expenses, to the Company's current shareholders, and (ii) sell l,819,374 shares of the Company's common stock (the " Shares ") to each of the Buyers for a purchase price of $10,000 for each (3,638,748 shares and $20,000 in the aggregate), such proceeds to be used to complete an audit of the Company/s financial statements and the cost of registering the Company's common stock pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the " Exchange Act ").
B.
The Company desires to sell and Buyers desire to purchase the Shares, all subject to the terms and conditions contained in this Agreement.
AGREEMENT
In consideration of the above recitals and the promises set forth in this Agreement, the parties agree as follows:
1.
Purchase and Sale . On the date hereof, Buyers agree to purchase, and the Company agrees to sell, issue and deliver to Buyers, the Shares.
2.
Price and Payment . As part payment for the Shares, each Buyer will deliver to the Company, (i) upon the execution and delivery of this Agreement, the sum of $5,000, payable by check or any other form of payment acceptable to the Company, and (ii) upon the closing of the sale by the Company of the Real Estate and the appointment of the Buyers to the Company's Board of Directors, the sum of $5,000 (the remaining portion of the purchase price for the Shares being purchased by each Buyer), payable by check or any other form of payment acceptable to the Company. The Company will deliver to each Buyer a certificate for the Shares being purchased immediately following the payment of the full purchase price for the Shares.
3.
Dividend . The Company and Buyers agree that a dividend of substantially all of the cash assets of the Company after the sale of the real estate will be declared and paid to shareholders of record prior to the issuance of the Shares to the Buyers.
4.
Representations and Warranties .
4.1
The Company has full right and authority to sell the Shares to Buyers;
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4.2
Upon execution and delivery of this Agreement, the Company will engage its independent auditors to complete the audit of the Company' s financial statements which will be required to be included as part of the registration statement the Company intends to file to register it shares of common stock pursuant to Section 12(g) of the Exchange Act;
4.3
The Company has full right and authority to sell the Real Estate and has secured all approvals required to sell the Real Estate and will use its reasonable best efforts to sell the Real Estate and distribute the net proceeds thereof, less costs of distribution, to its current shareholders as soon as possible;
4.4
The Company will not issue, or agree to issue, any additional shares of its capital stock or incur any indebtedness without the prior written consent of the Buyers;
4.5
The Company's current capitalization consists solely of 909,687 shares of issued and outstanding common stock and the Company has no outstanding options or commitments to sell any additional shares of capital stock and has no outstanding indebtedness other than as set forth on Schedule I of this Agreement;
4.6
Upon issuance of the Shares, each Buyer will own forty percent (40%) of the Company's then issued and outstanding shares of common stock;
4.7
Upon the closing of the sale of the Real Estate, cause each of the Buyers to be elected to and the current directors to resign from the Company's Board of Directors; and
4.8
In the event that the Company has not sold the Real Estate by June 30, 2008, at the Buyers' written request, the Company shall refund and return to each of the Buyers the full amount they have previously paid for the Shares in accordance with the terms of this Agreement and this Agreement shall be terminated and of no further force and effect.
5.
Investment Representation . Each of the Buyers acknowledges and represents as follows:
5.1
He has been given access to full and complete information regarding the Company and has utilized such access to his satisfaction for the purpose of obtaining information regarding the Company, and, particularly, he has met with or been given reasonable opportunity to meet with representatives of the Company for the purpose of obtaining all information concerning the Company that he deems necessary to make an informed investment decision.
5.2
He is in a financial position to hold the Shares for an indefinite period of time and is able to bear the economic risk and withstand a complete loss of his investment in the Shares.
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5.3
He has such knowledge and experience in financial and business matters that he is capable of reading and interpreting financial statements and evaluating the merits and risks of the prospective investment in the Shares.
5.4
He has obtained, to the extent he deems necessary, professional investment advice with respect to the risks inherent in an investment in the Shares, and the suitability of an investment in the Shares in light of his financial condition and investment needs.
5.5
He believes that the investment in the Shares is suitable for him based upon the his investment objectives and financial needs, and he has adequate means for providing for his current financial needs and personal contingencies and has no need for liquidity of investment with respect to the Shares.
5.6
He recognizes that an investment in the Shares is highly speculative and involves a high degree of risk, including, but not limited to, the risk of economic losses from operations of the Company and the loss of his entire investment in the Company.
5.7
He understands that the Company makes no assurances whatsoever concerning the present or prospective value of the Shares.
5.8
He understands that there are substantial restrictions on the transfer of the Shares and, accordingly, he may not be able to liquidate an investment in the Shares for an indefinite period.
5.9
The Shares are being acquired for his own account and for investment, he has made no agreement with others regarding the Shares, and his financial condition is such that it is not likely that it will be necessary to dispose of the Shares in the foreseeable future.
5.10
He is an accredited investor as defined in the rules under the Act (defined below) and a bona fide resident ot: and is domiciled in and received the offer and made the decision to invest in the Shares in, the state of Colorado.
6.
No Registration Under the Securities Laws . Buyers have been advised that the Shares are not being registered under the Securities Act of 1933, as amended (the "Act") or state securities laws pursuant to exemptions from the Act and such laws, and that the Company's reliance upon such exemptions is predicated in part on the representations of Buyers contained herein.
7.
Miscellaneous . No amendment to this Agreement or waiver of the rights or obligations of the parties shall be effective unless in writing signed by the parties. This Agreement is governed by the laws of the State of Minnesota without regard to conflicts of laws·principles. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or
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degree will remain in full force and effect to the extent not held invalid or unenforceable. Any notices, consents or other communications pursuant to this Agreement must be in writing and delivered by first class mail, courier or facsimile (with written confirmation of receipt) to the address of the recipient party set forth under its signature (or to such other address provided by such notice). This Agreement contains the entire agreement and understanding of the parties concerning the subject matter of this Agreement and supersedes any prior agreements or representations, whether oral or written. This Agreement may be signed by facsimile and in counterparts. The representations and warranties contained in this Agreement will survive the execution and delivery of this Agreement. This Agreement will be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
The parties have executed this Agreement as of the date first written above.
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THE COMPANY: |
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ALADDIN INTERNATION, INC. |
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/s/ Jan F. Ebbert |
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President |
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BUYERS: |
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/s/ Michael Friess |
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Michael Friess |
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5353 Manhattan Circle |
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Suite 101 |
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Boulder, CO 80303 |
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/s/ Sanford Schwartz |
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Sanford Schwartz |
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5353 Manhattan Circle |
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Suite 101 |
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Boulder, CO 80303 |
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SCHEDULE I
Current Indebtedness. The Company's current debt, as of the date of this agreement, consists of accrued income taxes for 2006 and 2007.
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