Form 1-A Issuer Information UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 1-A
REGULATION A OFFERING STATEMENT
UNDER THE SECURITIES ACT OF 1933
OMB APPROVAL

FORM 1-A

OMB Number: 3235-0286


Estimated average burden hours per response: 608.0

1-A: Filer Information

Issuer CIK
0001902930
Issuer CCC
XXXXXXXX
DOS File Number
Offering File Number
Is this a LIVE or TEST Filing? LIVE TEST
Would you like a Return Copy?
Notify via Filing Website only?
Since Last Filing?

Submission Contact Information

Name
Phone
E-Mail Address

1-A: Item 1. Issuer Information

Issuer Infomation

Exact name of issuer as specified in the issuer's charter
Performance Drink Group, Inc.
Jurisdiction of Incorporation / Organization
COLORADO
Year of Incorporation
1997
CIK
0001902930
Primary Standard Industrial Classification Code
BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS
I.R.S. Employer Identification Number
86-2795971
Total number of full-time employees
0
Total number of part-time employees
2

Contact Infomation

Address of Principal Executive Offices

Address 1
11427 W170 FRONTAGE RD N
Address 2
City
WHEAT RIDGE
State/Country
COLORADO
Mailing Zip/ Postal Code
80033
Phone
719-752-8459

Provide the following information for the person the Securities and Exchange Commission's staff should call in connection with any pre-qualification review of the offering statement.

Name
Eric Newlan
Address 1
Address 2
City
State/Country
Mailing Zip/ Postal Code
Phone

Provide up to two e-mail addresses to which the Securities and Exchange Commission's staff may send any comment letters relating to the offering statement. After qualification of the offering statement, such e-mail addresses are not required to remain active.

Financial Statements

Industry Group (select one) Banking Insurance Other

Use the financial statements for the most recent period contained in this offering statement to provide the following information about the issuer. The following table does not include all of the line items from the financial statements. Long Term Debt would include notes payable, bonds, mortgages, and similar obligations. To determine "Total Revenues" for all companies selecting "Other" for their industry group, refer to Article 5-03(b)(1) of Regulation S-X. For companies selecting "Insurance", refer to Article 7-04 of Regulation S-X for calculation of "Total Revenues" and paragraphs 5 and 7 of Article 7-04 for "Costs and Expenses Applicable to Revenues".

Balance Sheet Information

Cash and Cash Equivalents
$ 10572.00
Investment Securities
$ 0.00
Total Investments
$
Accounts and Notes Receivable
$ 0.00
Loans
$
Property, Plant and Equipment (PP&E):
$ 0.00
Property and Equipment
$
Total Assets
$ 10572.00
Accounts Payable and Accrued Liabilities
$ 75000.00
Policy Liabilities and Accruals
$
Deposits
$
Long Term Debt
$ 15000.00
Total Liabilities
$ 90000.00
Total Stockholders' Equity
$ -79428.00
Total Liabilities and Equity
$ 10572.00

Statement of Comprehensive Income Information

Total Revenues
$ 0.00
Total Interest Income
$
Costs and Expenses Applicable to Revenues
$ 0.00
Total Interest Expenses
$
Depreciation and Amortization
$ 0.00
Net Income
$ -30860.00
Earnings Per Share - Basic
$ -0.00
Earnings Per Share - Diluted
$ -0.00
Name of Auditor (if any)
N/A

Outstanding Securities

Common Equity

Name of Class (if any) Common Equity
Common Stock
Common Equity Units Outstanding
380966242
Common Equity CUSIP (if any):
530615103
Common Equity Units Name of Trading Center or Quotation Medium (if any)
OTC Pink

Preferred Equity

Preferred Equity Name of Class (if any)
N/A
Preferred Equity Units Outstanding
0
Preferred Equity CUSIP (if any)
00000none
Preferred Equity Name of Trading Center or Quotation Medium (if any)
none

Debt Securities

Debt Securities Name of Class (if any)
N/A
Debt Securities Units Outstanding
0
Debt Securities CUSIP (if any):
00000none
Debt Securities Name of Trading Center or Quotation Medium (if any)
none

1-A: Item 2. Issuer Eligibility

Issuer Eligibility

Check this box to certify that all of the following statements are true for the issuer(s)

1-A: Item 3. Application of Rule 262

Application Rule 262

Check this box to certify that, as of the time of this filing, each person described in Rule 262 of Regulation A is either not disqualified under that rule or is disqualified but has received a waiver of such disqualification.

Check this box if "bad actor" disclosure under Rule 262(d) is provided in Part II of the offering statement.

1-A: Item 4. Summary Information Regarding the Offering and Other Current or Proposed Offerings

Summary Infomation

Check the appropriate box to indicate whether you are conducting a Tier 1 or Tier 2 offering Tier1 Tier2
Check the appropriate box to indicate whether the financial statements have been audited Unaudited Audited
Types of Securities Offered in this Offering Statement (select all that apply)
Equity (common or preferred stock)
Does the issuer intend to offer the securities on a delayed or continuous basis pursuant to Rule 251(d)(3)? Yes No
Does the issuer intend this offering to last more than one year? Yes No
Does the issuer intend to price this offering after qualification pursuant to Rule 253(b)? Yes No
Will the issuer be conducting a best efforts offering? Yes No
Has the issuer used solicitation of interest communications in connection with the proposed offering? Yes No
Does the proposed offering involve the resale of securities by affiliates of the issuer? Yes No
Number of securities offered
1000000000
Number of securities of that class outstanding
380966242

The information called for by this item below may be omitted if undetermined at the time of filing or submission, except that if a price range has been included in the offering statement, the midpoint of that range must be used to respond. Please refer to Rule 251(a) for the definition of "aggregate offering price" or "aggregate sales" as used in this item. Please leave the field blank if undetermined at this time and include a zero if a particular item is not applicable to the offering.

Price per security
$ 0.0125
The portion of the aggregate offering price attributable to securities being offered on behalf of the issuer
$ 12500000.00
The portion of the aggregate offering price attributable to securities being offered on behalf of selling securityholders
$ 0.00
The portion of the aggregate offering price attributable to all the securities of the issuer sold pursuant to a qualified offering statement within the 12 months before the qualification of this offering statement
$ 0.00
The estimated portion of aggregate sales attributable to securities that may be sold pursuant to any other qualified offering statement concurrently with securities being sold under this offering statement
$ 0.00
Total (the sum of the aggregate offering price and aggregate sales in the four preceding paragraphs)
$ 12500000.00

Anticipated fees in connection with this offering and names of service providers

Underwriters - Name of Service Provider
Underwriters - Fees
$
Sales Commissions - Name of Service Provider
Sales Commissions - Fee
$
Finders' Fees - Name of Service Provider
Finders' Fees - Fees
$
Audit - Name of Service Provider
Audit - Fees
$
Legal - Name of Service Provider
Newlan Law Firm, PLLC
Legal - Fees
$ 12500.00
Promoters - Name of Service Provider
Promoters - Fees
$
Blue Sky Compliance - Name of Service Provider
State Regulators
Blue Sky Compliance - Fees
$ 2500.00
CRD Number of any broker or dealer listed:
Estimated net proceeds to the issuer
$
Clarification of responses (if necessary)

1-A: Item 5. Jurisdictions in Which Securities are to be Offered

Jurisdictions in Which Securities are to be Offered

Using the list below, select the jurisdictions in which the issuer intends to offer the securities

Selected States and Jurisdictions
COLORADO
CONNECTICUT
DELAWARE
GEORGIA
NEW YORK
PUERTO RICO

Using the list below, select the jurisdictions in which the securities are to be offered by underwriters, dealers or sales persons or check the appropriate box

None
Same as the jurisdictions in which the issuer intends to offer the securities
Selected States and Jurisdictions

1-A: Item 6. Unregistered Securities Issued or Sold Within One Year

Unregistered Securities Issued or Sold Within One Year

None

Unregistered Securities Issued

As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:

(a)Name of such issuer
PERFORMANCE DRINK GROUP, INC.
(b)(1) Title of securities issued
COMMON STOCK
(2) Total Amount of such securities issued
300000000
(3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer.
0
(c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof.
For services, $.001 per share; board of directors determination
(2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)).

Unregistered Securities Issued

As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:

(a)Name of such issuer
PERFORMANCE DRINK GROUP, INC.
(b)(1) Title of securities issued
SERIES A PREFERRED STOCK
(2) Total Amount of such securities issued
7716216
(3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer.
0
(c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof.
$.005 per share; board of directors determination
(2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)).

Unregistered Securities Issued

As to any unregistered securities issued by the issuer of any of its predecessors or affiliated issuers within one year before the filing of this Form 1-A, state:

(a)Name of such issuer
PERFORMANCE DRINK GROUP, INC.
(b)(1) Title of securities issued
SERIES B PREFERRED STOCK
(2) Total Amount of such securities issued
1
(3) Amount of such securities sold by or for the account of any person who at the time was a director, officer, promoter or principal securityholder of the issuer of such securities, or was an underwriter of any securities of such issuer.
0
(c)(1) Aggregate consideration for which the securities were issued and basis for computing the amount thereof.
$.0001 per share; board of directors determination
(2) Aggregate consideration for which the securities listed in (b)(3) of this item (if any) were issued and the basis for computing the amount thereof (if different from the basis described in (c)(1)).

Unregistered Securities Act

(e) Indicate the section of the Securities Act or Commission rule or regulation relied upon for exemption from the registration requirements of such Act and state briefly the facts relied upon for such exemption
Section 4(a)(2)

Table of Contents

File No. 024-______________

 

As filed with the Securities and Exchange Commission on January 7, 2022

 

PART II - INFORMATION REQUIRED IN OFFERING CIRCULAR

 

Preliminary Offering Circular dated January 7, 2022

 

An offering statement pursuant to Regulation A relating to these securities has been filed with the United States Securities and Exchange Commission (the “SEC”). Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the offering statement filed with the SEC is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the offering statement in which such Final Offering Circular was filed may be obtained.

 

OFFERING CIRCULAR

 

Performance Drink Group, Inc.

1,000,000,000 Shares of Common Stock

 

By this Offering Circular, Performance Drink Group, Inc., a Colorado corporation, is offering for sale a maximum of 1,000,000,000 shares of its common stock (the “Offered Shares”), at a fixed price of $_____[0.005-0.02] per share, pursuant to Tier 1 of Regulation A of the United States Securities and Exchange Commission (the “SEC”). A minimum purchase of $5,000 of the Offered Shares is required in this offering; any additional purchase must be in an amount of at least $1,000. This offering is being conducted on a best-efforts basis, which means that there is no minimum number of Offered Shares that must be sold by us for this offering to close; thus, we may receive no or minimal proceeds from this offering. All proceeds from this offering will become immediately available to us and may be used as they are accepted. Purchasers of the Offered Shares will not be entitled to a refund and could lose their entire investments.

 

Upon qualification of this offering by the SEC, the $75,000 principal amount of our sole outstanding convertible promissory note (the “Convertible Note”) will, by the terms of the Convertible Note, be eligible for conversion into Offered Shares (the Offered Shares issued upon conversion of the Convertible Note are referred to as the “Conversion Shares”), at the election of its holder, at the offering price for all of the Offered Shares, $_____[0.005-0.02] per share converted. (See “Use of Proceeds” and “Plan of Distribution”).

 

Please see the “Risk Factors” section, beginning on page 4, for a discussion of the risks associated with a purchase of the Offered Shares.

 

We estimate that this offering will commence on or around February 7, 2022; this offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering being qualified by the SEC or (c) the date on which this offering is earlier terminated by us, in our sole discretion. (See “Plan of Distribution”).

 

Title of

Securities Offered

 

Number

of Shares

 

 

Price to Public

 

 

Commissions (1)

 

 

Proceeds to Company (2)

Common Stock       1,000,000,000   $_____[0.005-0.02]   $-0-   $_____[5,000,000-20,000,000] (3)

_______

(1)   We may offer the Offered Shares through registered broker-dealers and we may pay finders. However, information as to any such broker-dealer or finder shall be disclosed in an amendment to this Offering Circular.
(2)   Does not account for the payment of expenses of this offering estimated at $15,000. See “Plan of Distribution.”
(3)   The amount of proceeds received by us includes the $75,000 principal amount of the Convertible Note that, upon qualification of this offering by the SEC, may be converted into Offered Shares, at the election of the holder of the Convertible Note. After deducting the aggregate principal amount of the Convertible Note, we will receive cash proceeds from sales of the Offered Shares equal to $_______[4,925,000-19,925,000].

 

Our common stock is quoted in the over-the-counter under the symbol “PDPG” in the OTC Pink marketplace of OTC Link. On January 6, 2022, the closing price of our common stock was $0.227 per share.

 

Investing in the Offered Shares is speculative and involves substantial risks, including the superior voting rights of our single outstanding share of Series B Convertible Preferred Stock, which precludes current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Our current officers and directors, as the beneficial owners of the single outstanding share of the Series B Convertible Preferred Stock, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares”).

 

 

 

     

 

 

THE SEC DOES NOT PASS UPON THE MERITS OF, OR GIVE ITS APPROVAL TO, ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC. HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

The use of projections or forecasts in this offering is prohibited. No person is permitted to make any oral or written predictions about the benefits you will receive from an investment in Offered Shares.

 

No sale may be made to you in this offering if you do not satisfy the investor suitability standards described in this Offering Circular under “Plan of Distribution-State Law Exemption” and “Offerings to Qualified Purchasers-Investor Suitability Standards” (page 4). Before making any representation that you satisfy the established investor suitability standards, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

This Offering Circular follows the disclosure format of Form S-1, pursuant to the General Instructions of Part II(a)(1)(ii) of Form 1-A.

 

The date of this Offering Circular is ______, 2022.

 

 

 

     

 

 

TABLE OF CONTENTS

 

  Page
Cautionary Statement Regarding Forward-Looking Statements 1
Offering Circular Summary 2
Risk Factors 4
Dilution 15
Use of Proceeds 16
Plan of Distribution 18
Description of Securities 21
Business 23
Management’s Discussion and Analysis of Financial Condition and Results of Operations 26
Directors, Executive Officers, Promoters and Control Persons 29
Executive Compensation 31
Security Ownership of Certain Beneficial Owners and Management 33
Certain Relationships and Related Transactions 35
Legal Matters 35
Where You Can Find More Information 35
Index to Financial Statements F-1

 

 

 

  i  

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The information contained in this Offering Circular includes some statements that are not historical and that are considered forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company; and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express our expectations, hopes, beliefs and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words anticipates, believes, continue, could, estimates, expects, intends, may, might, plans, possible, potential, predicts, projects, seeks, should, will, would and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting our company will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are also described below in the Risk Factors section. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

 

 

  1  

 

 

OFFERING CIRCULAR SUMMARY

 

The following summary highlights material information contained in this Offering Circular. This summary does not contain all of the information you should consider before purchasing our common stock. Before making an investment decision, you should read this Offering Circular carefully, including the Risk Factors section and the unaudited consolidated financial statements and the notes thereto. Unless otherwise indicated, the terms we, us and our refer and relate to Performance Drink Group, Inc., a Colorado corporation.

 

Our Company

 

Our company was incorporated on June 12, 1997, under the laws of the State of Florida as Derma Laser Technology, Inc. In May 1998, our corporate name changed to Eastern Pacific Energy Corporation; in July 1999, our corporate name changed to Utilisource Corporation; in September 2007, our corporate name changed to Utilisource International Corporation; in May 2009, our corporate name changed to Whole In One Organics, Inc.; in March 2012, our corporate name changed to Liberty International Holding Corporation. On March 18, 2021 our company changed its domicile from Florida to Colorado.

 

On December 15, 2020, the 11th Judicial Circuit Court in Miami-Dade County, Florida, entered an order appointing Small Cap Compliance, LLC as custodian for our company. On December 16, 2020, Rhonda Keaveney was appointed as our interim sole officer and director. In connection with a change-in-control transaction, on January, 8, 2021, Rhonda Keaveney resigned as our sole officer and director and appointed David Lovatt and Leonard K. Armenta Jr. as our new officers and directors.

 

In March 2021, our corporate name changed to Performance Drink Group, Inc.

 

We are a company that intends to become a purveyor of innovative energy drinks and energy drink concentrates that contain cognitive enhancing ingredients designed to increase mental performance and all-around productivity, as well as other formulation designed to offer third party brand owners a range of products to choose from when going to market. (See “Business”).

 

Offering Summary

 

Securities Offered   1,000,000,000 shares of common stock, par value $0.00001 (the Offered Shares).
Offering Price   $._____[0.005-0.02] per Offered Share.

Shares Outstanding

Before This Offering

  380,966,242 shares issued and outstanding as of the date hereof.

Shares Outstanding

After This Offering

  1,380,966,242 shares issued and outstanding, assuming the sale of all of the Offered Shares hereunder.

Minimum Number of Shares

to Be Sold in This Offering

  None
Disparate Voting Rights   Our single outstanding share of Series B Convertible Preferred Stock possesses superior voting rights, which preclude current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Our officers and directors, David Lovatt and Leonard K. Armenta, Jr., as the beneficial owners of the single outstanding share of the Series B Convertible Preferred Stock, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares,” “Security Ownership of Certain Beneficial Owners and Management” and “Certain Relationships and Related Transactions”).
Investor Suitability Standards   The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

 

 

 

  2  

 

 

 

Market for our Common Stock   Our common stock is quoted in the over-the-counter market under the symbol “PDPG” in the OTC Pink marketplace of OTC Link.
Termination of this Offering   This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering circular being qualified by the SEC and (c) the date on which this offering is earlier terminated by us, in our sole discretion.

Conversion of the

Convertible Note

  Upon qualification of this offering by the SEC, the $75,000 principal amount of the Convertible Note will, by the terms of the Convertible Note, be eligible for conversion into Offered Shares (the Conversion Shares), at the election of its holder, at the offering price for all of the Offered Shares, or $_____[0.005-0.02]. We would realize $75,000 of proceeds from the sale and issuance of the Conversion Shares and there would be __________[985,000,000-996,250,000] Offered Shares remaining for sale pursuant to this Offering Circular. (See “Use of Proceeds” and “Plan of Distribution”).
Use of Proceeds   We will apply the cash proceeds of this offering for facilities leases, equipment, marketing expenses, inventory, acquisitions, payroll, general and administrative expenses and working capital. (See “Use of Proceeds”).
Risk Factors   An investment in the Offered Shares involves a high degree of risk and should not be purchased by investors who cannot afford the loss of their entire investments. You should carefully consider the information included in the Risk Factors section of this Offering Circular, as well as the other information contained in this Offering Circular, prior to making an investment decision regarding the Offered Shares.
Corporate Information   Our principal executive offices are located at 11427 West I-70 Frontage Road North, Wheat Ridge, Colorado 80033; our telephone number is (800) 624-5913; our corporate website is located at www.performancedrinkgroup.com. No information found on our company’s website is part of this Offering Circular.

 

Continuing Reporting Requirements Under Regulation A

 

As a Tier 1 issuer under Regulation A, we will be required to file with the SEC a Form 1-Z (Exit Report Under Regulation A) upon the termination of this offering. We will not be required to file any other reports with the SEC following this offering.

 

However, during the pendency of this offering and following this offering, we intend to file quarterly and annual financial reports and other supplemental reports with OTC Markets, which will be available at www.otcmarkets.com.

 

All of our future periodic reports, whether filed with OTC Markets or the SEC, will not be required to include the same information as analogous reports required to be filed by companies whose securities are listed on the NYSE or NASDAQ, for example.

 

 

 

  3  

 

 

RISK FACTORS

 

An investment in the Offered Shares involves substantial risks. You should carefully consider the following risk factors, in addition to the other information contained in this Offering Circular, before purchasing any of the Offered Shares. The occurrence of any of the following risks might cause you to lose a significant part of your investment. The risks and uncertainties discussed below are not the only ones we face, but do represent those risks and uncertainties that we believe are most significant to our business, operating results, prospects and financial condition. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. (See “Cautionary Statement Regarding Forward-Looking Statements”).

 

Risks Associated with the COVID-19 Pandemic

 

It is possible that the Coronavirus (“COVID-19”) pandemic could cause long-lasting stock market volatility and weakness, as well as long-lasting recessionary effects on the United States and/or global economies. Should the negative economic impact caused by the COVID-19 pandemic result in continuing long-term economic weakness in the United States and/or globally, our ability to expand our business would be severely negatively impacted. It is possible that our company would not be able to sustain during any such long-term economic weakness.

 

Risks Related to Our Company

 

We have incurred losses in prior periods, and losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows. We have incurred losses in prior periods. For the nine months ended September 30, 2021, we incurred a net loss of $30,860 (unaudited) and, as of that date, we had an accumulated deficit of $419,428 (unaudited). For the years ended December 31, 2020 and 2019, we had neither revenues, expenses nor assets, inasmuch as were a “shell company” during such years. Any losses in the future could cause the quoted price of our common stock to decline or have a material adverse effect on our financial condition, our ability to pay our debts as they become due, and on our cash flows.

 

There is doubt about our ability to continue as a viable business. We have not earned a profit from our operations during recent financial periods. There is no assurance that we will ever earn a profit from our operations in future financial periods.

 

We may be unable to obtain sufficient capital to implement our full plan of business. Currently, we do not have sufficient financial resources with which to establish our new business strategies. There is no assurance that we will be able to obtain sources of financing, including in this offering, in order to satisfy our working capital needs.

 

We do not have a successful operating history. For the years ended December 31, 2020 and 2019, we were a shell company. During the nine months ended September 30, 2021, we generated no revenues and incurred a net loss from operations, which makes an investment in the Offered Shares speculative in nature. Because of this lack of operating success, it is difficult to forecast our future operating results. Additionally, our operations will be subject to risks inherent in the implementation of new business strategies, including, among other factors, efficiently deploying our capital, developing and implementing our marketing campaigns and strategies and developing greater awareness. Our performance and business prospects will suffer if we are unable to overcome the following challenges, among others:

 

· our dependence upon external sources for the financing of our operations, particularly given that there are concerns about our ability to continue as a going concern;
· our ability to execute our business strategies;
· our ability to manage our expansion, growth and operating expenses;
· our ability to finance our business;
· our ability to compete and succeed in highly a competitive industry; and
· future geopolitical events and economic crisis.

 

There are risks and uncertainties encountered by under-capitalized companies. As an under-capitalized company, we are unable to offer assurance that we will be able to overcome our lack of capital, among other challenges.

 

We may not be successful in establishing our beverage business model. We are unable to offer assurance that we will be successful in establishing our beverage business model. Should we fail to do so, you can expect to lose your entire investment in the Offered Shares.

 

 

 

  4  

 

 

We may never earn a profit in future financial periods. Because we lack a successful operating history, we are unable to offer assurance that we will ever earn a profit in future financial periods.

 

If we are unable to manage future expansion effectively, our business may be adversely impacted. In the future, we may experience rapid growth in our operations, which could place a significant strain on our company’s infrastructure, in general, and our internal controls and other managerial, operating and financial resources, in particular. If we are unable to manage future expansion effectively, our business would be harmed. There is, of course, no assurance that we will enjoy rapid development in our business.

 

We currently depend on the efforts of our executive officers; the loss of these executive officers could disrupt our operations and adversely affect the further development of our business. Our success in establishing implementing our beverage business strategies will depend, primarily, on the continued service of our Chief Executive Officer, David Lovatt, and our President, Leonard K. Amenta, Jr. The loss of service of either of Messrs. Lovatt or Armenta, for any reason, could seriously impair our ability to execute our business plan, which could have a materially adverse effect on our business and future results of operations. We have not entered into employment agreements with either of Messrs. Lovatt or Armenta. We have not purchased any key-man life insurance.

 

If we are unable to recruit and retain key personnel, our business may be harmed. If we are unable to attract and retain key personnel, our business may be harmed. Our failure to enable the effective transfer of knowledge and facilitate smooth transitions with regard to our key employees could adversely affect our long-term strategic planning and execution.

 

Our beverage business strategies are not based on independent market studies. We have not commissioned any independent market studies with respect to the beverage industry. Rather, our plans for implementing our beverage business and achieving profitability are based on the experience, judgment and assumptions of our management. If these assumptions prove to be incorrect, we may not be successful in establishing our business.

 

Our Board of Directors may change our policies without shareholder approval. Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, will be determined by our Board of Directors or officers to whom our Board of Directors delegates such authority. Our Board of Directors will also establish the amount of any dividends or other distributions that we may pay to our shareholders. Our Board of Directors or officers to which such decisions are delegated will have the ability to amend or revise these and our other policies at any time without shareholder vote. Accordingly, our shareholders will not be entitled to approve changes in our policies, which policy changes may have a material adverse effect on our financial condition and results of operations.

 

Risks Related to Our Business

 

Demand for our products may be adversely affected by changes in consumer preferences or any inability on our part to innovate, market or distribute our products effectively, and any significant reduction in demand could adversely affect our business, financial condition or results of operations. Our planned beverage portfolio will be comprised of a number of unique brands for which we will be required to establish reputations and consumer imagery. Our future investments in marketing, as well as our strong commitment to product quality, will be intended to have a favorable impact on brand image and consumer preferences. If we do not adequately anticipate and react to changing demographics, consumer and economic trends, health concerns and product preferences, our financial results could be adversely affected.

 

Additionally, any failure by us to introduce new brands, products or product extensions into the marketplace and to meet the changing preferences of consumers could prevent us from gaining market share and achieving long-term profitability. Product lifecycles can vary and consumer preferences and loyalties change over time. Although we will attempt to anticipate these shifts and innovate new products to introduce to our consumers, we may not succeed. Consumer preferences also are affected by factors other than taste, such as health and nutrition considerations and obesity concerns, shifting consumer needs, changes in consumer lifestyles, increased consumer information and competitive product and pricing pressures. Sales of our products may be adversely affected by the negative publicity associated with these issues. If we do not adequately anticipate or adjust to respond to these and other changes in consumer preferences, we may not be able to maintain and grow our brand image and our sales may be adversely affected.

 

 

 

  5  

 

 

Volatility in the price or availability of the inputs upon which we will depend, including raw materials, packaging, energy and labor, could adversely impact our financial results. The principal raw materials we expect to use include bottles, labels and cardboard cartons, flavorings and sweeteners. These ingredient costs are subject to fluctuation. Substantial increases in the prices of our ingredients, raw materials and packaging materials, to the extent that they cannot be recouped through increases in the prices of finished beverage products, would increase our operating costs and could reduce our profitability. If our supply of these raw materials is impaired or if prices increase significantly, it could affect the affordability of our products and reduce sales. Further, should we be unable to secure sufficient ingredients or raw materials, we might not be able to satisfy demand on a short-term basis.

 

Changes in government regulation or failure to comply with existing regulations could adversely affect our business, financial condition and results of operations. Our business and properties will be subject to various federal, state and local laws and regulations, including those governing the production, packaging, quality, labeling and distribution of beverage products. In addition, various governmental agencies have enacted or are considering additional taxes on soft drinks and other sweetened beverages. Changes in existing laws or regulations could require material expenses and negatively affect our financial results through lower sales or higher costs.

 

We will compete in an industry that is brand-conscious, making brand name recognition and acceptance of our products critical to our success. Our business will be dependent upon awareness and market acceptance of our products and brands by our target market. In addition, our business will depend on acceptance by independent distributors and retailers of our brands as beverage brands that have the potential to provide incremental sales growth. If we are not successful in the growth of our brand and product offerings, we may not achieve and maintain satisfactory levels of acceptance by independent distributors and retail consumers. Any failure of our brand to establish, maintain or increase acceptance or market penetration would likely have a material adverse effect on our revenues and financial results.

 

Our brands and brand images will be keys to our business and any inability to maintain a positive brand image could have a material adverse effect on our results of operations. Our success depends on our ability to establish and maintain brand image for our planned products and effectively build up brand image for them. We cannot predict whether our advertising, marketing and promotional programs will have the desired impact on our products’ branding and on consumer preferences. In addition, negative public relations and product quality issues, whether real or imagined, could tarnish our reputation and image of the affected brands and could cause consumers to choose other products. Our brand image can also be adversely affected by unfavorable reports, studies and articles, litigation, or regulatory or other governmental action, whether involving our products or those of our competitors.

 

Competition from traditional and large, well-financed non-alcoholic and alcoholic beverage manufacturers may adversely affect our distribution relationships and may hinder development of our existing markets, as well as prevent us from expanding our markets. The beverage industry is highly competitive. We compete with other beverage companies not only for consumer acceptance but also for shelf space in retail outlets and for marketing focus by our distributors, all of whom also distribute other beverage brands. Our products compete with all non-alcoholic and alcoholic beverages, most of which are marketed by companies with substantially greater financial resources than ours. Some of these competitors are placing severe pressure on independent distributors not to carry competitive brands such as ours. We also compete with regional beverage producers and “private label” hydration suppliers.

 

Increased competitor consolidations, marketplace competition, particularly among branded beverage products, and competitive product and pricing pressures could impact our earnings, market share and volume growth. If, due to such pressure or other competitive threats, we are unable to sufficiently maintain or develop our distribution channels, we may be unable to achieve our current revenue and financial targets. Competition, particularly from companies with greater financial and marketing resources than ours, could have a material adverse effect on our existing markets, as well as on our ability to expand the market for our products.

We may experience a reduced demand for certain of our products due to health concerns (including obesity) and legislative initiatives against sweetened beverages. Consumers are concerned about health and wellness; public health officials and government officials are increasingly vocal about obesity and its consequences. There has been a trend among some public health advocates and dietary guidelines to recommend a reduction in sweetened beverages, as well as increased public scrutiny, new taxes on sugar-sweetened beverages (as described below), and additional governmental regulations concerning the marketing and labeling/packing of the beverage industry. Additional or revised regulatory requirements, whether labeling, tax or otherwise, could have a material adverse effect on our financial condition and results of operations. Further, increasing public concern with respect to sweetened beverages could reduce demand for our beverages and increase desire for more low-calorie soft drinks, water, enhanced water, coffee-flavored beverages, tea, and beverages with natural sweeteners.

 

 

 

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Legislative or regulatory changes that affect our products, including new taxes, could reduce demand for products or increase our costs. Taxes imposed on the sale of certain of our planned products by federal, state and local governments in the United States, or other countries in which we operate could cause consumers to shift away from purchasing our beverages. Several municipalities in the United States have implemented or are considering implementing taxes on the sale of certain “sugared” beverages, including non-diet soft drinks, fruit drinks, teas and flavored waters to help fund various initiatives. These taxes could materially affect our business and financial results.

 

Our reliance on distributors, retailers and brokers could affect our ability to efficiently and profitably establish, distribute and market our products. Our ability to establish our planned products, and to establish markets in geographic distribution areas, is dependent on our ability to establish and maintain successful relationships with reliable distributors, retailers and brokers strategically positioned to serve those areas. It can be expected that most of our distributors, retailers and brokers will sell and distribute competing products and our products may represent a small portion of their respective businesses. The success of this network will depend on the performance of the distributors, retailers and brokers of this network. There is a risk that these third parties may not adequately perform their functions within the network by, without limitation, failing to distribute to sufficient retailers or positioning our products in localities that may not be receptive to our product. Our ability to incentivize and motivate distributors to manage and sell our products will be affected by competition from other beverage companies who have greater resources than do we. To the extent that our distributors, retailers and brokers are distracted from selling our products or do not employ sufficient efforts in managing and selling our products, including re-stocking the retail shelves with our products, our sales and results of operations could be adversely affected. Furthermore, such third-parties’ financial position or market share may deteriorate, which could adversely affect our distribution, marketing and sales activities.

 

Our ability, first, to establish, then, to maintain and expand our distribution network and attract additional distributors, retailers and brokers will depend on a number of factors, many of which are outside our control. These factors include:

 

· the level of demand for our brands and products in a particular distribution area;
· our ability to price our products at levels competitive with those of competing products; and
· our ability to deliver products in the quantity and at the time ordered by distributors, retailers and brokers.

 

We may not be able to successfully manage all or any of these factors. Our inability to achieve success with regards to any of these factors will have a material adverse effect on our revenues and financial results.

 

Once we begin production of our products, it will be difficult to predict the timing and amount of our sales, because our distributors will not be required to place minimum orders with us. We anticipate that our independent distributors will not required to place minimum monthly or annual orders for our products. In order to reduce their inventory costs, independent distributors typically order products on a “just in time” basis in quantities and at such times based on the demand for the products in a particular distribution area. Accordingly, we cannot predict the timing or quantity of purchases by any of our independent distributors or whether any of our distributors will continue to purchase products from us in the same frequencies and volumes over time. Additionally, should our products prove to be in demand and our distributors make large orders, we could be unable to full such orders. Shortages in inventory levels, supply of raw materials or other key supplies could negatively affect our ability to earn a profit.

 

If we do not adequately manage our inventory levels, our operating results could be adversely affected. We will be required to maintain adequate inventory levels, to be able to deliver products to distributors on a timely basis. Our inventory supply will depend on our ability to estimate correctly demand for our products, once established. Our ability to estimate demand for our products is imprecise, particularly for new products, seasonal promotions and new markets. If we materially underestimate demand for our products or are unable to maintain sufficient inventory of raw materials, we might not be able to satisfy demand on a short-term basis. If we overestimate distributor or retailer demand for our products, we may end up with too much inventory, resulting in higher storage costs, increased trade spend and the risk of inventory spoilage. If we fail to manage our inventory to meet demand, we could damage our relationships with our distributors and retailers and could delay or lose sales opportunities, which would unfavorably impact our future sales and adversely affect our operating results. In addition, if the inventory of our products held by our distributors and retailers is too high, they will not place orders for additional products, which would also unfavorably impact our sales and adversely affect our operating results.

 

 

 

  7  

 

 

If we fail to establish and maintain relationships with independent contract manufacturers, our business could be harmed. We do not intend to manufacture our products, but will, rather, outsource the manufacturing process to third-party bottlers and independent contract manufacturers (co-packers). We do not own the plants or the equipment required to manufacture and package our planned beverage products, and we do not intend to bring the manufacturing process in-house. Our ability to establish and maintain effective relationships with contract manufacturers and other third parties for the production and delivery of our planned beverage products is important to the success of our future operations. We may not be able to establish and maintain relationships with contract manufacturers. The failure to establish and maintain effective relationships with contract manufacturers could increase our manufacturing costs and thereby materially reduce gross profits from the sale of our products. Poor relations with any of our contract manufacturers could adversely affect the amount and timing of product delivered to our distributors for resale, which would, in turn, adversely affect our revenues and financial condition. In addition, because we expect that our agreements with our contract manufacturers will be terminable at any time, and any such termination could disrupt our ability to deliver products to our customers.

 

The volatility of energy prices and increased regulations may have an adverse impact on our gross margin. Over recent years, fuel prices have been extremely volatile; many shipping companies have passed on increased prices to their customers by way of higher base pricing and increased fuel surcharges. In the future, if fuel prices increase, we expect to experience higher shipping rates and fuel surcharges, as well as energy surcharges on our raw materials. It is difficult to predict future energy prices and their impact on our business. Due to the price sensitivity of our products, we may not be able to pass such increases on to our customers, to the detriment of our operating results.

 

Disruption within our supply chain, contract manufacturing or distribution channels, once established, could have an adverse effect on our business, financial condition and results of operations. Our ability, through our suppliers, business partners, contract manufacturers, independent distributors and retailers, to make, move and sell products will be critical to our success. Any future damage or disruption to our suppliers or to manufacturing or distribution capabilities due to weather, natural disaster, fire or explosion, terrorism, pandemics, such as influenza COVID-19, labor strikes or other reasons, could impair the manufacture, distribution and sale of our products. Many of these events are outside of our control. Failure to take adequate steps to protect against or mitigate the likelihood or potential impact of such events, or to manage effectively such events if they occur, could adversely affect our business, financial condition and results of operations.

 

We will rely upon relationships with key flavor suppliers. If we are unable to source our flavors on acceptable terms from our key suppliers, we could suffer disruptions in our business. Generally, flavor suppliers hold the proprietary rights to their flavor-specific ingredients. Although we will have the exclusive rights to flavor concentrates developed by us, and while we will have the rights to the ingredients for our products, we will not possess the list of ingredients for our flavor extracts and concentrates. Consequently, we may be unable to obtain these exact flavors or concentrates from alternative suppliers on short notice. If we have to replace a flavor supplier, we could experience disruptions in our ability to deliver products to our customers, which could have a material adverse effect on our results of operations.

 

If we fail to protect our trademarks and trade secrets, we may be unable to successfully market our products and compete effectively. We will rely on a combination of trademark and trade secrecy laws, confidentiality procedures and contractual provisions to protect our intellectual property rights. Failure to protect our intellectual property could harm our brand and our reputation, and adversely affect our ability to compete effectively. Further, enforcing or defending our intellectual property rights, including our trademarks, copyrights, licenses and trade secrets, could result in the expenditure of significant financial and managerial resources. We believe our intellectual property, particularly our trademarks and trade secrets, will be of considerable value and importance to our business and our success, and we intend to pursue actively the registration of our trademarks in the United States. However, the steps taken by us to protect these proprietary rights may not be adequate and may not prevent third parties from infringing or misappropriating our trademarks, trade secrets or similar proprietary rights. In addition, other parties may seek to assert infringement claims against us, and we may have to pursue litigation against other parties to assert our rights. Any such claim or litigation could be costly. In addition, any event that would jeopardize our proprietary rights or any claims of infringement by third parties could have a material adverse effect on our ability to market or sell our brands, profitably exploit our products or recoup our associated research and development costs.

 

 

 

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We may be required in the future to record a significant charge to earnings if our goodwill or intangible assets become impaired. Under generally accepted accounting principles in the United States, we are required to review our intangible assets for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Factors that may be considered a change in circumstances indicating that the carrying value of our intangible assets may not be recoverable include declining or slower than anticipated growth rates for certain of our existing products, a decline in stock price and market capitalization and slower growth rates in our industry. In such circumstance, we may be required to record a significant charge to earnings during the period in which we determine that our intangible assets have been impaired. Any such charge would adversely impact our results of operations.

 

If we encounter product recalls or other product quality issues, our business may suffer. Product quality issues, real or imagined, or allegations of product contamination, even when false or unfounded, could tarnish our image and could cause consumers to choose other products. In addition, because of changing government regulations or implementation thereof, or allegations of product contamination, we may be required from time to time to recall products entirely or from specific markets. Product recalls could affect our profitability and could negatively affect our brand image.

 

Our business is subject to many regulations and non-compliance is costly. The production, marketing and sale of our beverages, including contents, labels, caps and containers, are subject to the rules and regulations of various federal, state and local health agencies. If a regulatory authority finds that a current or future product or production batch or “run” is not in compliance with any of these regulations, we may be fined or have our production stopped, which would adversely affect our financial condition and results of operations. Similarly, any adverse publicity associated with any non-compliance may damage our reputation and our ability to market successfully our products. Furthermore, the rules and regulations are subject to change from time to time and while we will closely monitor developments in this area, we cannot anticipate whether changes in these rules and regulations will impact our business adversely. Additional or revised regulatory requirements, whether labeling, environmental, tax or otherwise, could have a material adverse effect on our financial condition and results of operations.

 

Significant additional labeling or warning requirements may inhibit sales of affected products. Various jurisdictions may seek to adopt significant additional product labeling or warning requirements relating to the chemical content or perceived adverse health consequences of certain of our planned products. These types of requirements, if they become applicable to one or more of our planned products under current or future environmental or health laws or regulations, may inhibit sales of such products. In California, a law requires that a specific warning appear on any product that contains a component listed by the state as having been found to cause cancer or birth defects. This law recognizes no generally applicable quantitative thresholds below which a warning is not required. If a component found in one of our planned products is added to the list, or if the increasing sensitivity of detection methodology that may become available under this law and related regulations as they currently exist, or as they may be amended, results in the detection of an infinitesimal quantity of a listed substance in one of our beverages produced for sale in California, the resulting warning requirements or adverse publicity could affect our sales.

 

Litigation or legal proceedings could expose us to significant liabilities and damage our reputation. We may become party to litigation claims and legal proceedings. Litigation involves significant risks, uncertainties and costs, including distraction of management attention away from our business operations. We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we establish reserves and disclose the relevant litigation claims or legal proceedings, as appropriate. These assessments and estimates are based on the information available to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from those envisioned by our current assessments and estimates. Our policies and procedures require strict compliance by our employees and agents with all U.S. and local laws and regulations applicable to our business operations, including those prohibiting improper payments to government officials. Nonetheless, our policies and procedures may not ensure full compliance by our employees and agents with all applicable legal requirements. Improper conduct by our employees or agents could damage our reputation or lead to litigation or legal proceedings that could result in civil or criminal penalties, including substantial monetary fines, as well as disgorgement of profits.

 

Water scarcity and poor quality could negatively impact our costs and capacity. Water will be a main ingredient in each of our planned products, is vital to the production of the agricultural ingredients on which our business relies and is needed in our manufacturing process. As the demand for water continues to increase, and as water becomes scarcer and the quality of available water deteriorates, we may incur higher costs or face capacity constraints and the possibility of reputational damage, which could adversely affect our profitability or net operating revenues.

 

 

 

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Our business and operations would be adversely impacted in the event of a failure or interruption of our information technology infrastructure or as a result of a cybersecurity attack. The proper functioning of our own information technology (IT) infrastructure is critical to the efficient operation and management of our business. We may not have the necessary financial resources to update and maintain our IT infrastructure, and any failure or interruption of our IT system could adversely impact our operations. In addition, our IT is vulnerable to cyberattacks, computer viruses, worms and other malicious software programs, physical and electronic break-ins, sabotage and similar disruptions from unauthorized tampering with our computer systems. We believe that we have adopted appropriate measures to mitigate potential risks to our technology infrastructure and our operations from these IT-related and other potential disruptions. However, given the unpredictability of the timing, nature and scope of any such IT failures or disruptions, we could potentially be subject to downtimes, transactional errors, processing inefficiencies, operational delays, other detrimental impacts on our operations or ability to provide products to our customers, the compromising of confidential or personal information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems and networks, financial losses from remedial actions, loss of business or potential liability, and/or damage to our reputation, any of which could have a material adverse effect on our cash flows, competitive position, financial condition or results of operations.

 

If we fail to comply with personal data protection and privacy laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which could negatively affect our business and operating results. In the ordinary course of our business, we receive, process, transmit and store information relating to identifiable individuals ("personal data"), primarily employees, former employees and consumers with whom we interact. As a result, we are subject to various U.S. federal and state and foreign laws and regulations relating to personal data. These laws have been subject to frequent changes, and new legislation in this area may be enacted in other jurisdictions at any time. These laws impose operational requirements for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. These requirements with respect to personal data have subjected and may continue in the future to subject the Company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information security systems, policies, procedures and practices. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Unauthorized access or improper disclosure of personal data in violation of personal data protection or privacy laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including fines), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results.

 

If our third-party service providers and business partners do not satisfactorily fulfill their commitments and responsibilities, our financial results could suffer. In the conduct of our business, we rely on relationships with third parties, including cloud data storage and other information technology service providers, suppliers, distributors, contractors, joint venture partners and other external business partners, for certain functions or for services in support of key portions of our operations. These third-party service providers and business partners are subject to similar risks as we are relating to cybersecurity, privacy violations, business interruption, and systems and employee failures, and are subject to legal, regulatory and market risks of their own. Our third-party service providers and business partners may not fulfill their respective commitments and responsibilities in a timely manner and in accordance with the agreed-upon terms. In addition, while we have procedures in place for selecting and managing our relationships with third-party service providers and other business partners, we do not have control over their business operations or governance and compliance systems, practices and procedures, which increases our financial, legal, reputational and operational risk. If we are unable to effectively manage our third-party relationships, or for any reason our third-party service providers or business partners fail to satisfactorily fulfill their commitments and responsibilities, our financial results could suffer.

 

Our future results of operations may fluctuate from quarter to quarter for many reasons, including seasonality. Once we begin production of our planned products, our sales are expected to be seasonal, with fluctuations in quarterly results. Companies similar to ours have historically generated a greater percentage of our revenues during the warm weather months of April through September. Timing of customer purchases will vary each year and sales can be expected to shift from one quarter to another. As a result, our management believes that period-to-period comparisons of results of operations are not necessarily meaningful and should not be relied upon as any indication of future performance or results expected for the fiscal year.

 

 

 

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Risks Related to Compliance and Regulation

 

We will not have reporting obligations under Sections 14 or 16 of the Securities Exchange Act of 1934, nor will any shareholders have reporting requirements of Regulation 13D or 13G, nor Regulation 14D. So long as our common shares are not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common shares will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5, respectively. Such information about our directors, executive officers and beneficial holders will only be available through periodic reports we file with OTC Markets.

 

Our common stock is not registered under the Exchange Act and we do not intend to register our common stock under the Exchange Act for the foreseeable future; provided, however, that we will register our common stock under the Exchange Act if we have, after the last day of any fiscal year, more than either (1) 2,000 persons; or (2) 500 shareholders of record who are not accredited investors, in accordance with Section 12(g) of the Exchange Act.

 

Further, as long as our common stock is not registered under the Exchange Act, we will not be subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the SEC a proxy statement and form of proxy complying with the proxy rules.

The reporting required by Section 14(d) of the Exchange Act provides information to the public about persons other than the company who is making the tender offer. A tender offer is a broad solicitation by a company or a third party to purchase a substantial percentage of a company’s common stock for a limited period of time. This offer is for a fixed price, usually at a premium over the current market price, and is customarily contingent on shareholders tendering a fixed number of their shares.

 

In addition, as long as our common stock is not registered under the Exchange Act, our company will not be subject to the reporting requirements of Regulation 13D and Regulation 13G, which require the disclosure of any person who, after acquiring directly or indirectly the beneficial ownership of any equity securities of a class, becomes, directly or indirectly, the beneficial owner of more than 5% of the class.

 

There may be deficiencies with our internal controls that require improvements. Our company is not required to provide a report on the effectiveness of our internal controls over financial reporting. We are in the process of evaluating whether our internal control procedures are effective and, therefore, there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such independent evaluations.

 

Risks Related to Our Organization and Structure

 

As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for independent board members. As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer conducting an offering on Form S-1 or listing on a national stock exchange would be. Accordingly, we are not required to have (a) a board of directors of which a majority consists of independent directors under the listing standards of a national stock exchange, (b) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange’s requirements, (c) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/ corporate governance committee charter meeting a national stock exchange’s requirements, (d) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange, and (e) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of a national stock exchange.

 

 

 

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Our holding company structure makes us dependent on our subsidiaries for our cash flow and could serve to subordinate the rights of our shareholders to the rights of creditors of our subsidiaries, in the event of an insolvency or liquidation of any such subsidiary. Our company acts as a holding company and, accordingly, substantially all of our operations are conducted through our subsidiaries. Such subsidiaries will be separate and distinct legal entities. As a result, substantially all of our cash flow will depend upon the earnings of our subsidiaries. In addition, we will depend on the distribution of earnings, loans or other payments by our subsidiaries. No subsidiary will have any obligation to provide our company with funds for our payment obligations. If there is an insolvency, liquidation or other reorganization of any of our subsidiaries, our shareholders will have no right to proceed against their assets. Creditors of those subsidiaries will be entitled to payment in full from the sale or other disposal of the assets of those subsidiaries before our company, as a shareholder, would be entitled to receive any distribution from that sale or disposal.

 

Risks Related to a Purchase of the Offered Shares

 

The single outstanding share of our Series B Convertible Preferred Stock precludes current and future owners of our common stock from influencing any corporate decision. Our officers and directors, David Lovatt and Leonard K. Armenta, Jr., beneficially own the single outstanding share of our Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Messrs. Lovatt and Armenta will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Security Ownership of Certain Beneficial Owners and Management”).

 

The single outstanding share of our Series B Convertible Preferred Stock represents potential significant future dilution in ownership of our common stock, including the Offered Shares. The single outstanding share of our Series B Convertible Preferred Stock is convertible, at any time, into a number of shares of our common stock that equals four times the number of outstanding shares of common stock and outstanding shares of all other preferred stock, on the conversion date. At such time as this share of Series B Convertible Preferred Stock is converted into shares of common stock, holders of our common stock, including the Offered Shares, will incur significant dilution in their ownership of our company. The effect of the conversion rights of the Series B Convertible Preferred Stock is that, upon conversion, the then-holder(s) of the Series B Convertible Preferred Stock, as a group, will be issued a number of shares of common stock equal to approximately 80% of the issued and outstanding shares of all of our capital stock, as measured after such conversion. We are unable to predict the effect that any such conversion event would have on the market price of our common stock. (See “Dilution”).

 

There is no minimum offering and no person has committed to purchase any of the Offered Shares. We have not established a minimum offering hereunder, which means that we will be able to accept even a nominal amount of proceeds, even if such amount of proceeds is not sufficient to permit us to achieve any of our business objectives. In this regard, there is no assurance that we will sell any of the Offered Shares or that we will sell enough of the Offered Shares necessary to achieve any of our business objectives. Additionally, no person is committed to purchase any of the Offered Shares.

 

We may seek additional capital that may result in shareholder dilution or that may have rights senior to those of our common stock. From time to time, we may seek to obtain additional capital, either through equity, equity-linked or debt securities. The decision to obtain additional capital will depend on, among other factors, our business plans, operating performance and condition of the capital markets. If we raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, which could negatively affect the market price of our common stock or cause our shareholders to experience dilution.

 

You may never realize any economic benefit from a purchase of Offered Shares. Because our common stock is volatile and thinly traded, there is no assurance that you will ever realize any economic benefit from your purchase of Offered Shares.

 

We do not intend to pay dividends on our common stock. We intend to retain earnings, if any, to provide funds for the implementation of our business strategy. We do not intend to declare or pay any dividends in the foreseeable future. Therefore, there can be no assurance that holders of our common stock will receive cash, stock or other dividends on their shares of our common stock, until we have funds which our Board of Directors determines can be allocated to dividends.

 

 

 

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Our shares of common stock are Penny Stock, which may impair trading liquidity. Disclosure requirements pertaining to penny stocks may reduce the level of trading activity in the market for our common stock and investors may find it difficult to sell their shares. Trades of our common stock will be subject to Rule 15g-9 of the SEC, which rule imposes certain requirements on broker-dealers who sell securities subject to the rule to persons other than established customers and accredited investors. For transactions covered by the rule, broker-dealers must make a special suitability determination for purchasers of the securities and receive the purchaser’s written agreement to the transaction prior to sale. The SEC also has rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in that security is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.

 

Our common stock is thinly traded and its market price may become highly volatile. There is currently only a limited market for our common stock. A limited market is characterized by a relatively limited number of shares in the public float, relatively low trading volume and a small number of brokerage firms acting as market makers. The market for low priced securities is generally less liquid and more volatile than securities traded on national stock markets. Wide fluctuations in market prices are not uncommon. No assurance can be given that the market for our common stock will continue. The price of our common stock may be subject to wide fluctuations in response to factors such as the following, some of which are beyond our control:

 

· quarterly variations in our operating results;
· operating results that vary from the expectations of investors;
· changes in expectations as to our future financial performance, including financial estimates by investors;
· reaction to our periodic filings, or presentations by executives at investor and industry conferences;
· changes in our capital structure;
· announcements of innovations or new services by us or our competitors;
· announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments;
· lack of success in the expansion of our business operations;
· announcements by third parties of significant claims or proceedings against our company or adverse developments in pending proceedings;
· additions or departures of key personnel;
· asset impairment;
· temporary or permanent inability to offer our real estate management services; and
· rumors or public speculation about any of the above factors.

 

The terms of this offering were determined arbitrarily. The terms of this offering were determined arbitrarily by us. The offering price for the Offered Shares does not necessarily bear any relationship to our company’s assets, book value, earnings or other established criteria of valuation. Accordingly, the offering price of the Offered Shares should not be considered as an indication of any intrinsic value of such securities. (See “Dilution”).

 

Our common stock is subject to price volatility unrelated to our operations. The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, quarterly operating results of other companies in the same industry, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting our company’s competitors or our company itself. In addition, the over-the-counter stock market is subject to extreme price and volume fluctuations in general. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.

 

 

 

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Future sales of our common stock, or the perception in the public markets that these sales may occur, could reduce the market price of our common stock. In general, our officers and directors and major shareholders, as affiliates, under Rule 144 may not sell more than one percent of the total issued and outstanding shares in any 90-day period, and must resell the shares in an unsolicited brokerage transaction at the market price. The availability for sale of substantial amounts of our common stock under Rule 144 or otherwise could reduce prevailing market prices for our common stock.

 

You will suffer dilution in the net tangible book value of the Offered Shares you purchase in this offering. If you acquire any Offered Shares, you will suffer immediate dilution, due to the lower book value per share of our common stock compared to the purchase price of the Offered Shares in this offering. (See “Dilution”).

 

As an issuer of penny stock, the protection provided by the federal securities laws relating to forward looking statements does not apply to us. Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

 

 

 

 

 

 

  14  

 

 

DILUTION

 

Ownership Dilution

 

The information under “Investment Dilution” below does not take into account the potential conversion of the single outstanding share of Series B Convertible Preferred Stock into a number of shares of our common stock that equals four (4) times the number of outstanding shares of common stock and outstanding shares of all other preferred stock, on the conversion date. At such time as this share of Series B Convertible Preferred Stock is converted into shares of common stock, holders of our common stock, including the Offered Shares, will incur significant dilution in their ownership of our company. The effect of the conversion rights of the Series B Convertible Preferred Stock is that, upon conversion, the then-holder(s) of the Series B Convertible Preferred Stock, as a group, will be issued a number of shares of common stock equal to approximately 80% of the issued and outstanding shares of all of our capital stock, as measured after such conversion. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Security Ownership of Certain Beneficial Owners and Management”).

 

Investment Dilution

 

Dilution in net tangible book value per share to purchasers of our common stock in this offering represents the difference between the amount per share paid by purchasers of the Offered Shares in this offering and the net tangible book value per share immediately after completion of this offering. In this offering, dilution is attributable primarily to our negative net tangible book value per share.

 

If you purchase Offered Shares in this offering, your investment will be diluted to the extent of the difference between your purchase price per Offered Share and the net tangible book value of our common stock after this offering. Our net tangible book value as of September 30, 2021, was $(419,428) (unaudited), or $(0.0011) per share. Net tangible book value per share is equal to total assets minus the sum of total liabilities and intangible assets divided by the total number of shares outstanding.

 

The tables below illustrate the dilution to purchasers of Offered Shares in this offering, on a pro forma basis, assuming 100%, 75%, 50% and 25% of the Offered Shares are sold.

 

Assuming the Sale of 100% of the Offered Shares    
Assumed offering price per share   $.____[0.005-0.02]
Net tangible book value per share as of September 30, 2021 (unaudited)   $(0.0011)
Increase in net tangible book value per share after giving effect to this offering   $.____[0.0044-0.0153]
Pro forma net tangible book value per share as of September 30, 2021 (unaudited)   $.____[0.0033-0.0142]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering   $.____[0.0017-0.0058]

 

 

Assuming the Sale of 75% of the Offered Shares    
Assumed offering price per share   $.____[0.005-0.02]
Net tangible book value per share as of September 30, 2021 (unaudited)   $(0.0011)
Increase in net tangible book value per share after giving effect to this offering   $.____[0.0040-0.0140]
Pro forma net tangible book value per share as of September 30, 2021 (unaudited)   $.____[0.0029-0.0129]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering   $.____[0.0021-0.0071]

 

 

Assuming the Sale of 50% of the Offered Shares    
Assumed offering price per share   $.____[0.005-0.02]
Net tangible book value per share as of September 30, 2021 (unaudited)   $(0.0011)
Increase in net tangible book value per share after giving effect to this offering   $.____[0.0035-0.0120]
Pro forma net tangible book value per share as of September 30, 2021 (unaudited)   $.____[0.0024-0.0109]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering   $.____[0.0026-0.0091]

 

Assuming the Sale of 25% of the Offered Shares    
Assumed offering price per share   $.____[0.005-0.02]
Net tangible book value per share as of September 30, 2021 (unaudited)   $(0.0011)
Increase in net tangible book value per share after giving effect to this offering   $.____[0.0024-0.0083]
Pro forma net tangible book value per share as of September 30, 2021 (unaudited)   $.____[0.0013-0.0072]
Dilution in net tangible book value per share to purchasers of Offered Shares in this offering   $.____[0.0037-0.0128]

 

 

 

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USE OF PROCEEDS

 

The table below sets forth the estimated proceeds we would derive from this offering, assuming the sale of 25%, 50%, 75% and 100% of the Offered Shares and assuming the payment of no sales commissions or finder’s fees. There is, of course, no guaranty that we will be successful in selling any of the Offered Shares in this offering.

 

        Assumed Percentage of Offered Shares Sold in This Offering
        25%     50%   75%   100%
Offered Shares sold       250,000,000     500,000,000   750,000,000   1,000,000,000
Gross proceeds       $[1,250,000-5,000,000]     $[2,500,000-10,000,000]   $[3,750,000-15,000,000]   $[5,000,000-20,000,000]
Offering expenses(1)       15,000     15,000   15,000   15,000
Net proceeds       $[1,235,000-4,985,000]     $[2,485,000-9,985,000]   $[3,735,000-14,985,000]   $[4,985,000-19,985,000]

 

(1)   Offering expenses include the following items, certain of which are estimated for purposes of this table: administrative expenses, legal and accounting fees, publishing/EDGAR and Blue-Sky compliance.

 

The table below sets forth the manner in which we intend to apply the net proceeds derived by us in this offering, including the sale and issuance of the Conversion Shares, assuming the sale of 25%, 50%, 75% and 100% of the Offered Shares. All amounts set forth below are estimates.

 

   

Use of Proceeds for Assumed Percentage
of Offered Shares Sold in This Offering

 
    25%     50%     75%     100%  
Warehouse, Office Lease   $ [84,800-392,800]     $ [192,800-792,800]     $ [292,800-1,192,800]     $ [392,800-1,592,800]  
Marketing and Advertising     [84,800-392,800]       [192,800-792,800]       [292,800-1,192,800]       [392,800-1,592,800]  
Joint Venture Creation     [74,200-343,700]       [168,700-693,700]       [256,200-1,043,700]       [343,700-1,393,700]  
Legal and Professional Fees     [84,800-392,800]       [192,800-792,800]       [292,800-1,192,800]       [392,800-1,592,800]  
Machinery     [137,800-638,300]       [313,300-1,288,300]       [475,800-1,938,300]       [638,300-2,588,300]  
Ingredient Inventory     [190,800-883,800]       [433,800-1,783,800]       [658,800-2,683,800]       [883,800-3,583,800]  
Payroll     [84,800-392,800]       [192,800-792,800]       [292,800-1,192,800]       [392,800-1,592,800]  
Acquisitions     [95,400-441,900]       [216,900-891,900]       [329,400-1,341,900]       [441,900-1,791,900]  
General and Administrative Expenses     [53,000-245,500]       [120,500-495,500]       [183,000-745,500]       [245,500-995,500]  
Working Capital     [169,600-785,600]       [385,600-1,585,600]       [585,600-2,385,600]       [785,600-3,185,600]  
Plus the cash value of the amount attributable to the conversion of the Convertible Note(1)     [75,000-75,000]       [75,000-75,000]       [75,000-75,000]       [75,000-75,000]  
                                 
Total Net Proceeds   $ [1,235,000-4,985,000]     $ [2,485,000-9,985,000]     $ [3,735,000-14,985,000]     $ [4,985,000-19,985,000]  

__________

(1)   The Convertible Note was issued to Elliott Polatoff, in consideration of a $75,000 loan that bears no interest, was due on September 1, 2021, and is convertible at Mr. Polatoff’s election, into the Conversion Shares. The proceeds of loan in consideration of which we issued the Convertible Note were used for general corporate purposes.

 

We reserve the right to change the foregoing use of proceeds, should our management believe it to be in the best interest of our company. The allocations of the proceeds of this offering presented above constitute the current estimates of our management and are based on our current plans, assumptions made with respect to the beverage industry, general economic conditions and our future revenue and expenditure estimates.

 

 

 

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Investors are cautioned that expenditures may vary substantially from the estimates presented above. Investors must rely on the judgment of our management, who will have broad discretion regarding the application of the proceeds of this offering. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations (if any), business developments and the rate of our growth. We may find it necessary or advisable to use portions of the proceeds of this offering for other purposes.

 

In the event we do not obtain the entire offering amount hereunder, we may attempt to obtain additional funds through private offerings of our securities or by borrowing funds. Currently, we do not have any committed sources of financing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PLAN OF DISTRIBUTION

 

In General

 

Our company is offering a maximum of 1,000,000,000 Offered Shares on a best-efforts basis, at a fixed price of $____[0.005-0.02] per Offered Share; any funds derived from this offering will be immediately available to us for our use. There will be no refunds.

 

Upon qualification of this offering by the SEC, the $75,000 principal amount of the Convertible Note will, by the terms of the Convertible Note, be eligible for conversion into the Conversion Shares, at the election of its holder, at the offering price for all of the Offered Shares, or $_____[0.005-0.02]. (See “Use of Proceeds”).

 

This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering being qualified by the SEC or (c) the date on which this offering is earlier terminated by us, in our sole discretion.

 

There is no minimum number of Offered Shares that we are required to sell in this offering. All funds derived by us from this offering will be immediately available for use by us, in accordance with the uses set forth in the Use of Proceeds section of this Offering Circular. No funds will be placed in an escrow account during the offering period and no funds will be returned, once an investor’s subscription agreement has been accepted by us.

 

We intend to sell the Offered Shares in this offering through the efforts of our Chief Executive Officer, David Lovatt. Mr. Lovatt will not receive any compensation for offering or selling the Offered Shares. We believe that Mr. Lovatt is exempt from registration as a broker-dealers under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In particular, Mr. Lovatt:

 

· is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Securities Act; and
· is not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
· is not an associated person of a broker or dealer; and
· meets the conditions of the following:
· primarily performs, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and
· was not a broker or dealer, or an associated person of a broker or dealer, within the preceding 12 months; and
· did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act.

 

As of the date of this Offering Circular, we have not entered into any agreements with selling agents for the sale of the Offered Shares. However, we reserve the right to engage FINRA-member broker-dealers. In the event we engage FINRA-member broker-dealers, we expect to pay sales commissions of up to 8.0% of the gross offering proceeds from their sales of the Offered Shares. In connection with our appointment of a selling broker-dealer, we intend to enter into a standard selling agent agreement with the broker-dealer pursuant to which the broker-dealer would act as our non-exclusive sales agent in consideration of our payment of commissions of up to 8.0% on the sale of Offered Shares effected by the broker-dealer.

 

Procedures for Subscribing

 

If you are interested in subscribing for Offered Shares in this offering, please submit a request for information by e-mail to Mr. Lovatt at: david.lovatt@supplementgrp.com; all relevant information will be delivered to you by return e-mail.

 

Thereafter, should you decide to subscribe for Offered Shares, you are required to follow the procedures described therein, which are:

 

· Electronically execute and deliver to us a subscription agreement; and
· Deliver funds directly by check or by wire or electronic funds transfer via ACH to our specified bank account.

 

 

 

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Right to Reject Subscriptions. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to us, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.

 

Acceptance of Subscriptions. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the Offered Shares subscribed. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

 

This Offering Circular will be furnished to prospective investors upon their request via electronic PDF format and will be available for viewing and download 24 hours per day, 7 days per week on our company’s page on the SEC’s website: www.sec.gov.

 

An investor will become a shareholder of our company and the Offered Shares will be issued, as of the date of settlement. Settlement will not occur until an investor’s funds have cleared and we accept the investor as a shareholder.

 

By executing the subscription agreement and paying the total purchase price for the Offered Shares subscribed, each investor agrees to accept the terms of the subscription agreement and attests that the investor meets certain minimum financial standards. (See State Qualification and Investor Suitability Standards below).

 

An approved trustee must process and forward to us subscriptions made through IRAs, Keogh plans and 401(k) plans. In the case of investments through IRAs, Keogh plans and 401(k) plans, we will send the confirmation and notice of our acceptance to the trustee.

 

Minimum Purchase Requirements

 

You must initially purchase at least $5,000 of the Offered Shares in this offering. If you have satisfied the minimum purchase requirement, any additional purchase must be in an amount of at least $1,000.

 

State Law Exemption and Offerings to Qualified Purchasers

 

State Law Exemption. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to purchase any Offered Shares in any jurisdiction in which, or to any person to whom, it would be unlawful to do so. An investment in the Offered Shares involves substantial risks and possible loss by investors of their entire investments. (See “Risk Factors”).

 

The Offered Shares have not been qualified under the securities laws of any state or jurisdiction. Currently, we plan to sell the Offered Shares in Colorado, Connecticut, Delaware, Georgia, Puerto Rico and New York. However, we may, at a later date, decide to sell Offered Shares in other states. In the case of each state in which we sell the Offered Shares, we will qualify the Offered Shares for sale with the applicable state securities regulatory body or we will sell the Offered Shares pursuant to an exemption from registration found in the applicable state’s securities, or Blue Sky, law.

 

Certain of our offerees may be broker-dealers registered with the SEC under the Exchange Act, who may be interested in reselling the Offered Shares to others. Any such broker-dealer will be required to comply with the rules and regulations of the SEC and FINRA relating to underwriters.

 

Investor Suitability Standards. The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

Issuance of the Offered Shares

 

Upon settlement, that is, at such time as an investor’s funds have cleared and we have accepted an investor’s subscription agreement, we will either issue such investor’s purchased Offered Shares in book-entry form or issue a certificate or certificates representing such investor’s purchased Offered Shares.

 

 

 

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Transferability of the Offered Shares

 

The Offered Shares will be generally freely transferable, subject to any restrictions imposed by applicable securities laws or regulations.

 

Advertising, Sales and Other Promotional Materials

 

In addition to this Offering Circular, subject to limitations imposed by applicable securities laws, we expect to use additional advertising, sales and other promotional materials in connection with this offering. These materials may include information relating to this offering, articles and publications concerning industries relevant to our business operations or public advertisements and audio-visual materials, in each case only as authorized by us. In addition, the sales material may contain certain quotes from various publications without obtaining the consent of the author or the publication for use of the quoted material in the sales material. Although these materials will not contain information in conflict with the information provided by this Offering Circular and will be prepared with a view to presenting a balanced discussion of risk and reward with respect to the Offered Shares, these materials will not give a complete understanding of our company, this offering or the Offered Shares and are not to be considered part of this Offering Circular. This offering is made only by means of this Offering Circular and prospective investors must read and rely on the information provided in this Offering Circular in connection with their decision to invest in the Offered Shares.

 

 

 

 

 

 

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DESCRIPTION OF SECURITIES

 

General

 

Our authorized capital stock consists of (a) 2,000,000,000 shares of common stock, $.00001 par value per share; and (b) 20,000,000 shares of Preferred Stock, $.00001 par value per share, (1) 10,000,000 of which have been designated Series A Convertible Preferred Stock and (2) 10,000,000 of which have been designated Series B Convertible Preferred Stock.

 

As of the date of this Offering Circular, there were (x) 380,966,242 shares of our common stock issued and outstanding held by 557 holders of record; (y) 9,999,998 shares of Series A Convertible Preferred Stock issued and outstanding held by one (1) holder of record; and (z) one (1) share of Series B Convertible Preferred Stock issued and outstanding held by one (1) holder of record.

Common Stock

 

General. The holders of our common stock currently have (a) equal ratable rights to dividends from funds legally available therefore, when, as and if declared by our Board of Directors; (b) are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of our company; (c) do not have preemptive, subscriptive or conversion rights and there are no redemption or sinking fund provisions or rights applicable thereto; and (d) are entitled to one non-cumulative vote per share on all matters on which shareholders may vote. Our Bylaws provide that, at all meetings of the shareholders for the election of directors, a plurality of the votes cast shall be sufficient to elect. On all other matters, except as otherwise required by Colorado law or our Articles of Incorporation, as amended, a majority of the votes cast at a meeting of the shareholders shall be necessary to authorize any corporate action to be taken by vote of the shareholders.

 

Non-cumulative Voting. Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining shares will not be able to elect any of our directors. Our officers and directors beneficially own 300,000,000 shares of our common stock.

 

In addition, the single outstanding share of Series B Convertible Preferred Stock is beneficially owned by our officers and directors, David Lovatt and Leonard K. Armenta, Jr. Messrs. Lovatt and Armenta, thus, control all corporate matters of our company. (See “Security Ownership of Certain Beneficial Owners and Management” and “Certain Relationships and Related Transactions”).

 

Pre-emptive Rights. As of the date of this Offering Circular, no holder of any shares of our capital stock has pre-emptive or preferential rights to acquire or subscribe for any unissued shares of any class of our capital stock not otherwise disclosed herein.

 

Series A Convertible Preferred Stock

 

Voting. The Series A Convertible Preferred Stock does not possess voting rights.

 

Dividends. The Series A Convertible Preferred Stock is not entitled to receive any dividends.

 

Liquidation Preference. In the event of any liquidation, dissolution or winding up of our company, either voluntary or involuntary, after setting apart or paying in full the preferential amounts due to holders of senior capital stock, including the Series B Convertible Preferred Stock, the holders of Series A Convertible Preferred Stock and parity capital stock, if any, shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of our company to the holders of junior capital stock, including our common stock, an amount equal to $.0001 per share (the “Series A Liquidation Preference”). If upon such liquidation, dissolution or winding up of our company, our assets available for distribution to the holders of the Series A Convertible Preferred Stock and parity capital stock, if any, shall be insufficient to permit in full the payment of the Series A Liquidation Preference, then all such assets of the Corporation shall be distributed ratably among the holders of the Series A Convertible Preferred Stock and parity capital stock, if any.

 

Conversion. The shares of Series A Convertible Preferred Stock are convertible at any time into shares of our common stock at the rate of one (1) share of our common stock for each share of Series A Convertible Preferred Stock converted.

 

 

 

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Series B Convertible Preferred Stock

 

Voting. The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Our officers and directors, David Lovatt and Leonard K. Armenta, Jr., as the beneficial owners of the single outstanding share of the Series B Convertible Preferred Stock, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares,” “Security Ownership of Certain Beneficial Owners and Management” and “Certain Relationships and Related Transactions”).

 

Dividends. The Series B Convertible Preferred Stock is not entitled to receive any dividends.

 

Liquidation Preference. In the event of any liquidation, dissolution or winding up of our company, either voluntary or involuntary, after setting apart or paying in full the preferential amounts due to holders of senior capital stock, if any, the holders of Series B Convertible Preferred Stock and parity capital stock, if any, shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of our company to the holders of junior capital stock, including the Series A Convertible Preferred Stock and our common stock, an amount equal to $.0001 per share (the “Series B Liquidation Preference”). If upon such liquidation, dissolution or winding up of our company, our assets available for distribution to the holders of the Series B Convertible Preferred Stock and parity capital stock, if any, shall be insufficient to permit in full the payment of the Series B Liquidation Preference, then all such assets of the Corporation shall be distributed ratably among the holders of the Series B Stock and parity capital stock, if any.

 

Conversion. As a group, the shares of Series B Convertible Preferred Stock are convertible, at any time, into a number of shares of our common stock that equals four (4) times the number of outstanding shares of common stock and outstanding shares of all other preferred stock, on the conversion date. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares”).

 

Convertible Promissory Note

 

As of the date of this Offering Circular, we had one outstanding promissory note that is convertible into shares our common stock, the Convertible Note. The table below sets forth information with respect to the Convertible Note.

 

 

Date of Note Issuance

 

Outstanding Balance ($)

Principal Amount at Issuance ($)

 

Accrued Interest ($)

 

Maturity Date

 

 

Conversion Terms

 

Name of Noteholder

 

Reason for Issuance

3/24/2021 $75,000 $75,000 $-0- 9/1/2021 See Note 1 Elliott Polatoff Loan

Note 1: Upon qualification of this offering by the SEC, the $75,000 principal amount of the Convertible Note will, by the terms of the Convertible Note, be eligible for conversion into the Conversion Shares, at the election of its holder, at the offering price for all of the Offered Shares, or $_____[0.005-0.02]. (See “Use of Proceeds” and “Plan of Distribution”).

 

Dividend Policy

 

We have never declared or paid any dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.

 

Shareholder Meetings

 

Our bylaws provide that special meetings of shareholders may be called only by our Board of Directors, the chairman of the board, or our president, or as otherwise provided under Colorado law.

 

Transfer Agent

 

We have retained the services of Issuer Direct Corporation, One Glenwood Avenue, Suite 1001, Raleigh, North Carolina 27603, as the transfer agent for our common stock. Issuer Direct’s website is located at: www.issuerdirect.com. No information found on Issuer Direct’s website is part of this Offering Circular.

 

 

 

  22  

 

 

BUSINESS

 

Overview

 

Our company was incorporated on June 12, 1997, under the laws of the State of Florida as Derma Laser Technology, Inc. In May 1998, our corporate name changed to Eastern Pacific Energy Corporation; in July 1999, our corporate name changed to Utilisource Corporation; in September 2007, our corporate name changed to Utilisource International Corporation; in May 2009, our corporate name changed to Whole In One Organics, Inc.; in March 2012, our corporate name changed to Liberty International Holding Corporation. On March 18, 2021 our company changed its domicile from Florida to Colorado.

 

On December 15, 2020, the 11th Judicial Circuit Court in Miami-Dade County, Florida, entered an order appointing Small Cap Compliance, LLC as custodian for our company. On December 16, 2020, Rhonda Keaveney was appointed as our interim sole officer and director. In connection with a change-in-control transaction, on January 8, 2021, Rhonda Keaveney resigned as our sole officer and director and appointed David Lovatt and Leonard K. Armenta Jr. as our new officers and directors.

 

In March 2021, our corporate name changed to Performance Drink Group, Inc.

 

We are a company that intends to become a purveyor of innovative energy drinks and energy drink concentrates that contain cognitive enhancing ingredients designed to increase mental performance and all-around productivity, as well as other formulations designed to offer third party brand owners a range of products to choose from when going to market. (See “Business”).

 

Summary

 

Our company aims to formulate and manufacture energy drinks for our own branded products that we intend to create, as well as to develop and manufacture, on a contract basis, products for third parties.

 

Overview

 

We intend to establish our company as an energy drink manufacturer whose beverages will aim to increase cognitive function by containing mentally stimulating and cognitive enhancing nutrients, designed to increase efficiency in productivity. In addition, we intend to establish our company as the energy drink contract manufacturer of choice for any company whose target market is millennials looking for a cognition and energy boasting drink that tastes great, as well as for third-party brand owners looking to offer new and innovative beverages to the market.

 

Most energy drinks on the market today contain ingredients that increase energy both on the short-term with sugar and substitutes and over a period of three to five hours with ginseng, B12 and other vitamins. In addition to eliciting a similar effect with equivalent ingredients, we plan to develop patented formulas that contain cognition enhancing nutrients with a varied flavor base designed to generate a “waking-up effect.” Therefore, we will include additional nutrients designed to increase cognitive performance and productivity at a greater level than all other energy drinks not based on our formulas.

 

Objectives and Keys to Success

 

Our management has developed the following three-year objectives for our company:

 

· Develop a range of proprietary formulas to provide product to the market.
· Communicate the cognition-enhancing features of our energy drinks.
· Continue to perform research and development.
· Establish a mainstream energy drink brand across the entire United States market, which brand would be ours or that of a third party for whom we produce products.
· Perform research into foreign markets.

 

 

  23  

 

 

To accomplish our stated objectives, our management has identified certain keys to achieving our objectives:

 

· Ensure that the formulas used are capable of being patented, to protect cheaper market penetration from “copy cat” product manufacturers.
· Develop formulas and methods for manufacture that are truly unique and offer genuine benefits to consumers.
· Continue to develop new flavors and innovations to maintain market dominance and penetration.

 

Target Market

 

Initially, we intend to target the North American market, before attempting to expand internationally. According to Investopedia, the global energy drinks market reached $57.4 billion in 2020 and is expected to grow by 7% annually through 2025. This growth is attributed to rising incomes and an increase in sports activity participation and urbanization. A greater network of channels through which these drinks are sold, including supermarkets, convenience stores and e-commerce sites, is expected to help drive sales growth in this industry.

 

Our Planned Energy Drinks

 

We will strive to develop and produce energy drink and energy drink concentrate products that are innovative and that contain cognition enhancing ingredients (nootropics) designed to increase mental performance and all-around productivity, as well as other formulations designed to offer third-party brand owners a range of products from which to choose when going to market. In addition to the formulations themselves, we intend to establish a reputation as being innovative in the energy drink space and being the manufacturer of high performance, self-improvement lifestyle drinks that appeal to the entire millennial demographics, from college students to young professionals, looking to better themselves. The energy drink market is highly appealing to young students looking for a competitive edge and the modern entrepreneur or office worker seeking to increase their productivity in lieu of illicit substances.

 

The products will come in many types depending on the customer base, but will initially develop a set of beverages in the carbonated energy space with products costing the brand owners around $1.00-$1.50 per can to order and with a minimum order quantity of around 1m cans. Such will the uniqueness of the formulations that we believe the demand for these energy beverages to brand owners across the world will be high over time.

In addition to carbonated drinks available to consume from the can, we will also attempt to develop powdered concentrates that can be added to water in order to achieve the same flavors but consumed in a different method from simply supplying carbonated cans of energy drinks. Partnerships with manufacturers of home water carbonation systems will also be considered.

 

Market Trends and Segmentation

 

Trends. Energy drinks have become a mainstay in society. Many bars and nightclubs have also started to integrate energy beverages into mainstream offerings for those that wish to pair alcohol and energy beverages. This development has, in part, fueled a increase in the sales of energy drinks over recent years.

 

Segmentation. The market is purposefully broadly defined as millennial consumers between the ages of 21 –37. We intend, initially, to enter the market for energy drinks and the market for nootropics, which we expect will generate two separate customer streams with different value propositions, but equal motivations. According to Pew Research, millennials have surpassed Baby Boomers as the nation's largest living generation, according to population estimates released by the U.S. Census Bureau. Millennials, whom we define as those ages 18-34 in 2015, now number 75.4 million, surpassing the 74.9 million Baby Boomers (ages 51-69). And Generation X (ages 35-50 in 2015) is projected to pass the Boomers in population by 2028.

 

Strategy and Implementation Summary

 

Research and Development. We are currently working with research groups and laboratories in Florida and Texas who specialize in beverage development and research. Together with their team and their established facilities, we will develop our products over the course of the first half of 2022. With assistance from industry professionals, we are committed to can make sure that our products are always on point, both in terms of flavor as well as functionality.

 

 

 

  24  

 

 

Production. The production process runs in three sections; the production of aluminum cans, which will be done by Ball, a world leading brand in production of beverage containers. After the completion of the cans they get transported to a co packer who will fill the cans with our product. Most the product will be stored at the production sight while some of it will be transported to drop ship holding facilities. All ingredients for the formula are being shipped to the co-packer by individual distributors.

 

Distribution. Once our products are ready for the third-party brand owner to collect, they will have 30 days to collect then during which time they will reside in our warehouse at no charge. After this time, a daily charge would begin to accrue, although we do not anticipate orders from third party brand owners being in our locations for more than 5 days as they seek to maximize their sales by distributing the product t retailers. Our products will be stacked on pallets and be available for third party brand owners to collect at their cost.

 

Strengths and Weaknesses

 

We perceive that our company has the following competitive strengths:

 

· Very high agility and flexibility to adapt to changes in the market climate.
· Patent protection and enforcement internationally for the PDPG brand.
· Company will not appeal to only one specific lifestyle niche like many brands.
· Unique products of high quality, far superior to standard energy drinks.
· A product that may help the consumer to be more productive and efficient.
· One of the first products on an emerging ‘next stage' market.
· Working within a market that is expected to grow with a high CAGR over a foreseeable future.
· High inhouse know-how and knowledge about the market and competing products.

 

We perceive that our company has the following competitive weaknesses:

 

· Financially weak compared to the competition.
· Production prices will be high at first with low volume.
· The manufacturing offering must virtually build itself from scratch.
· Low visibility on the market due to age and
· Company is small and will take time to saturate the market.
· Small team.

 

Governmental Regulation

 

The conduct of our businesses, including the production, storage, distribution, sale, display, advertising, marketing, labeling, content, quality, safety, transportation, packaging, disposal, recycling and use of our products, as well as our employment and occupational health and safety practices and protection of personal information, are subject to various laws and regulations administered by federal, state and local governmental agencies in the United States. It is our policy to abide by the laws and regulations that apply to our business.

 

In addition, certain jurisdictions have either imposed, or are considering imposing, product labeling or warning requirements or other limitations on the marketing or sale of certain of our products as a result of ingredients or substances contained in such products or the audience to whom products are marketed. These types of provisions have required that we highlight perceived concerns about a product, warn consumers to avoid consumption of certain ingredients or substances present in our products, restrict the age of consumers to whom products are marketed or sold or limit the location in which our products may be available. It is possible that similar or more restrictive requirements may be proposed or enacted in the future.

 

In addition, certain jurisdictions have either imposed or are considering imposing regulations designed to increase recycling rates or encourage waste reduction. These regulations vary in scope and form from deposit return systems designed to incentivize the return of beverage containers, to extended producer responsibility policies and even bans on the use of some types of single-use plastics. It is possible that similar or more restrictive requirements may be proposed or enacted in the future.

 

 

 

  25  

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Cautionary Statement

 

The following discussion and analysis should be read in conjunction with our unaudited financial statements and related notes, beginning on page F-1 of this Offering Circular.

 

Our actual results may differ materially from those anticipated in the following discussion, as a result of a variety of risks and uncertainties, including those described under Cautionary Statement Regarding Forward-Looking Statements and Risk Factors. We assume no obligation to update any of the forward-looking statements included herein.

 

COVID-19

 

On January 30, 2020, the World Health Organization declared the COVID-19 (coronavirus) outbreak a “Public Health Emergency of International Concern” and on March 10, 2020, declared it to be a pandemic. The virus and actions taken to mitigate its spread have had and are expected to continue to have a broad adverse impact on the economies and financial markets of many countries, including the geographical areas in which our company operates. To date, we do not believe that COVID-19 has had a material impact on our company’s operations, due to our company’s lack of operating capital during the last two years.

 

Results of Operations

 

Nine Months Ended September 30, 2021 (“Interim 2021”) and 2020 (“Interim 2020”). During Interim 2021, our business operations generated no revenue. We expect that our operations will begin to produce revenue during the second quarter of 2022. There is no assurance that such will be the case, however. We expect to incur operating losses through at least the third quarter of 2022. Further, because of our current lack of growth capital and the uncertainty of our obtaining needed capital, we are unable to predict the levels of our future revenues.

 

During Interim 2021, we incurred operating expenses of $30,860 (unaudited), which were comprised of $3,500 (unaudited) in advertising and marketing expenses,$27,150 (unaudited) in legal and professional services expenses and $210 (unaudited) in office and software expense. Our net loss for Interim 2021 was $(30,860) (unaudited).

 

During Interim 2020, we were a “shell” company had no revenues and incurred no expenses.

 

Years Ended December 31, 2020 (“Fiscal 2020”) and 2019 (“Fiscal 2019”). During Fiscal 2020 and Fiscal 2019, we were a “shell” company and generated no revenues and did not incur any operating expenses.

 

Plan of Operation

 

We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.

 

We intend to establish our company as an energy drink manufacturer whose beverages will aim to increase cognitive function by containing mentally stimulating and cognitive enhancing nutrients, designed to increase efficiency in productivity. In addition, we intend to establish our company as the energy drink contract manufacturer of choice for any company whose target market is millennials looking for a cognition and energy boasting drink that tastes great, as well as for third-party brand owners looking to offer new and innovative beverages to the market.

 

Objectives and Keys to Success. Our management has developed the following three-year objectives for our company:

 

· Develop a range of proprietary formulas to provide product to the market.
· Communicate the cognition-enhancing features of our energy drinks.
· Continue to perform research and development.
·

Establish a mainstream energy drink brand across the entire United States market, which brand would be ours or that of a third party for whom we produce products.

· Perform research into foreign markets.

 

 

  26  

 

 

To accomplish our stated objectives, our management has identified certain keys to achieving our objectives:

 

· Ensure that the formulas used are capable of being patented, to protect cheaper market penetration from “copy cat” product manufacturers.
· Develop formulas and methods for manufacture that are truly unique and offer genuine benefits to consumers.
· Continue to develop new flavors and innovations to maintain market dominance and penetration.

 

Target Market. Initially, we intend to target the North American market, before attempting to expand internationally. According to Investopedia, the global energy drinks market reached $57.4 billion in 2020 and is expected to grow by 7% annually through 2025. This growth is attributed to rising incomes and an increase in sports activity participation and urbanization. A greater network of channels through which these drinks are sold, including supermarkets, convenience stores and e-commerce sites, is expected to help drive sales growth in this industry.

 

Our Planned Energy Drinks. We will strive to develop and produce energy drink and energy drink concentrate products that are innovative and that contain cognition enhancing ingredients (nootropics) designed to increase mental performance and all-around productivity, as well as other formulations designed to offer third-party brand owners a range of products from which to choose when going to market. In addition to the formulations themselves, we intend to establish a reputation as being innovative in the energy drink space and being the manufacturer of high performance, self-improvement lifestyle drinks that appeal to the entire millennial demographics, from college students to young professionals, looking to better themselves. The energy drink market is highly appealing to young students looking for a competitive edge and the modern entrepreneur or office worker seeking to increase their productivity in lieu of illicit substances.

 

The products will come in many types depending on the customer base, but will initially develop a set of beverages in the carbonated energy space with products costing the brand owners around $1.00-$1.50 per can to order and with a minimum order quantity of around 1m cans. Such will the uniqueness of the formulations that we believe the demand for these energy beverages to brand owners across the world will be high over time.

 

In addition to carbonated drinks available to consume from the can, we will also attempt to develop powdered concentrates that can be added to water in order to achieve the same flavors but consumed in a different method from simply supplying carbonated cans of energy drinks. Partnerships with manufacturers of home water carbonation systems will also be considered.

 

Trends. Energy drinks have become a mainstay in society. Many bars and nightclubs have also started to integrate energy beverages into mainstream offerings for those that wish to pair alcohol and energy beverages. This development has, in part, fueled a increase in the sales of energy drinks over recent years.

 

Segmentation. The market is purposefully broadly defined as millennial consumers between the ages of 21 –37. We intend, initially, to enter the market for energy drinks and the market for nootropics, which we expect will generate two separate customer streams with different value propositions, but equal motivations. According to Pew Research, millennials have surpassed Baby Boomers as the nation’s largest living generation, according to population estimates released by the U.S. Census Bureau. Millennials, whom we define as those ages 18-34 in 2015, now number 75.4 million, surpassing the 74.9 million Baby Boomers (ages 51-69). And Generation X (ages 35-50 in 2015) is projected to pass the Boomers in population by 2028.

 

Strategy and Implementation Summary.

 

Research and Development. We are currently working with research groups and laboratories in Florida and Texas who specialize in beverage development and research. Together with their team and their established facilities, we will develop our products over the course of the first half of 2022. With assistance from industry professionals, we are committed to can make sure that our products are always on point, both in terms of flavor as well as functionality.

 

Production. The production process runs in three sections; the production of aluminum cans, which will be done by Ball, a world leading brand in production of beverage containers. After the completion of the cans they get transported to a co packer who will fill the cans with our product. Most the product will be stored at the production sight while some of it will be transported to drop ship holding facilities. All ingredients for the formula are being shipped to the co-packer by individual distributors.

 

 

 

  27  

 

 

Distribution. Once our products are ready for the third-party brand owner to collect, they will have 30 days to collect then during which time they will reside in our warehouse at no charge. After this time, a daily charge would begin to accrue, although we do not anticipate orders from third party brand owners being in our locations for more than 5 days as they seek to maximize their sales by distributing the product t retailers. Our products will be stacked on pallets and be available for third party brand owners to collect at their cost.

 

Financial Condition, Liquidity and Capital Resources

 

September 30, 2021. At September 30, 2021, our company had $10,572 (unaudited) in cash and had a working capital deficit of $64,428 (unaudited), compared to $-0- (unaudited) in cash and working capital of $-0- (unaudited) at December 31, 2020. During the nine months ended September 30, 2021, we obtained a total of $90,000 in cash from loans. As to $75,000 of such loans, we issued the Convertible Note. We applied the funds obtained from such loans to our ongoing operating expenses.

 

Our company’s current cash position of approximately $54,000 is not adequate for our company to maintain its present level of operations through the first half of 2022. We must obtain additional capital from third parties, including in this offering, to implement our full business plans. There is no assurance that we will be successful in obtaining such additional capital.

 

Convertible Promissory Note.

 

As of the date of this Offering Circular, we had one outstanding promissory note that is convertible into shares our common stock, the Convertible Note. The table below sets forth information with respect to the Convertible Note.

 

 

Date of Note Issuance

 

Outstanding Balance ($)

Principal Amount at Issuance ($)

 

Accrued Interest ($)

 

Maturity Date

 

 

Conversion Terms

 

Name of Noteholder

 

Reason for Issuance

3/24/2021 $75,000 $75,000 $-0- 9/1/2021 See Note 1 Elliott Polatoff Loan

 

Note 1: Upon qualification of this offering by the SEC, the $75,000 principal amount of the Convertible Note will, by the terms of the Convertible Note, be eligible for conversion into the Conversion Shares, at the election of its holder, at the offering price for all of the Offered Shares, or $_____[0.005-0.02]. (See “Use of Proceeds” and “Plan of Distribution”).

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Contractual Obligations

 

To date, we have not entered into any significant long-term obligations that require us to make monthly cash payments.

 

Capital Expenditures

 

We made no capital expenditures during the year ended December 31, 2020, nor during the nine months ended September 30, 2021. However, should be obtain proceeds in this offering, or otherwise, we expect to make capital expenditures during the next twelve months. We are unable to predict the amount or timing of any such expenditures.

 

 

  28  

 

 

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

 

Directors and Executive Officers

 

The following table sets forth certain information concerning our company’s executive management.

 

  Name   Age   Position(s)  
  David Lovat   47   Chief Executive Officer, Acting Chief Financial Officer, Secretary and Director  
  Leonard K. Armenta, Jr.   45   President and Director  

 

Our directors serve until a successor is elected and qualified. Our officers are elected by the Board of Directors to a term of one (1) year and serves until their successor(s) is duly elected and qualified, or until they are removed from office. There exist no family relationships among our officers and directors.

 

Certain information regarding the backgrounds of each of our officers and directors is set forth below.

 

David Lovatt has served as Chief Executive Officer, Acting Chief Financial Officer, Secretary and a Director or our company since January 8, 2021. From October 2013 to the present, Mr. Lovatt has served as Chief Executive Officer and a Director of GenTech Holdings, Inc. (trading symbol: GTEH), a purveyor of several brands in the functional food and nutritional supplement spaces. In addition, from June 2020 to the present, Mr. Lovatt has served as Chief Executive Officer and a Director of Torque Lifestyle Brands, Inc. (trading symbol: TQLB), a manufacturer of premium nutritional supplements. Since August 2017, Mr. Lovatt has owned and operated Green Light Developments, LLC, a commercial billing company. Mr. Lovatt is an accomplished serial entrepreneur with over 20 years of business, executive and capital markets experience with both public and private companies in the Sports Nutrition and Supplements markets. Since 2008 he has founded or acquired 10 businesses and sold 4, developing and executing aggressive visions for the brands by defining and achieving record growth. Mr. Lovatt has led multiple companies through mergers, acquisitions, IPO’s and financing efforts. David Lovatt currently serves on the boards of numerous sports nutrition and supplements businesses and is a prominent thought leader within the industry. He is originally from the United Kingdom and holds a Bachelor of Arts in Political Science & Government from the University of Huddersfield.

 

Leonard K. Armenta, Jr. has served as President and a Director of our company since January 8, 2021. From June 2020 to the present, Mr. Lovatt has served as Chief Executive Officer and a Director of Torque Lifestyle Brands, Inc. (trading symbol: TQLB), a manufacturer of premium nutritional supplements. In addition, from November 2020 to the present, Mr. Armenta has served as President of GenTech Holdings, Inc. (trading symbol: GTEH), a purveyor of several brands in the functional food and nutritional supplement spaces. From September 2021 through June 2020, Mr. Armenta owned and operated F3 Sports Innovations, LLC, a direct-to-consumer nutritional supplements company. Mr. Armenta is an industry professional with over 20 years’ experience in the Functional Food and Supplements industries, with broad experience developing startups and spearheading growth initiatives at established companies. He is a highly adaptable marketing, operations and sales leader with a focus on developing new business relationships, growing sales, launching new marketing strategies and maximizing positive customer relations. Previously, he was Chief Operating Officer and Executive Vice President of MusclePharm Inc, where he grew the Company's sales from $86K to $60 million annually within three years, achieving recognition as the fastest growing supplement company in the industry.

 

Conflicts of Interest

 

At the present time, we do not foresee any direct conflict between our officers and directors, their other business interests and their involvement in our company.

 

Corporate Governance

 

We do not have a separate Compensation Committee, Audit Committee or Nominating Committee. These functions are conducted by our Board of Directors acting as a whole.

 

During the year ended December 31, 2020, our Board of Directors, did not hold a meeting, but took action by unanimous written consent in lieu of a meeting on one occasion.

 

 

 

  29  

 

 

Independence of Board of Directors

 

None of our directors is not independent, within the meaning of definitions established by the SEC or any self-regulatory organization. We are not currently subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include independent directors.

 

Shareholder Communications with Our Board of Directors

 

Our company welcomes comments and questions from our shareholders. Shareholders should direct all communications to our Chief Executive Officer, David Lovatt, at our executive offices. However, while we appreciate all comments from shareholders, we may not be able to respond individually to all communications. We attempt to address shareholder questions and concerns in our press releases and documents filed with OTC Markets, so that all shareholders have access to information about us at the same time. Mr. Lovatt collects and evaluates all shareholder communications. All communications addressed to our directors and executive officers will be reviewed by those parties, unless the communication is clearly frivolous.

 

Code of Ethics

 

As of the date of this Offering Circular, our Board of Directors has not adopted a code of ethics with respect to our directors, officers and employees.

 

 

 

 

 

 

 

 

 

  30  

 

 

EXECUTIVE COMPENSATION

 

In General

 

As of the date of this Offering Circular, there are no annuity, pension or retirement benefits proposed to be paid to officers, directors or employees of our company, pursuant to any presently existing plan provided by, or contributed to, our company.

 

Compensation Summary

 

The following table summarizes information concerning the compensation awarded, paid to or earned by, our executive officers.

 

Name and Principal Position     Year       Salary
($)
      Bonus
($)
    Stock
Awards($)
  Option
Awards ($)
  Non-Equity Incentive Plan Compensation($)   Non-qualified
Deferred Compensation Earnings($)
  All Other Compen- sation($)     Total ($)  
                                                     
David Lovatt (1)     2020                              
Chief Executive Officer, Secretary     2019                              
                                                     

Leonard K. Armenta, Jr. (1)

    2020                              
Chief Financial Officer     2019                              

__________

(1) This person was not an officer of our company, until January 2021.

   

 

Outstanding Option Awards

 

The following table provides certain information regarding unexercised options to purchase common stock, stock options that have not vested and equity-incentive plan awards outstanding as of the date of this Offering Circular, for each named executive officer.

 

    Option Awards Stock Awards  
 

 

 

 

 

 

 

 

 

 

 

Name

 

 

 

 

 

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

 

 

 

 

 

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

 

Equity

Incentive

Plan

Awards:

Number of

Securities

Underlying

Unexercised

Unearned

Options (#)

 

 

 

 

 

 

 

 

Option

Exercise

Price ($)

 

 

 

 

 

 

 

 

Option

Expiration

Date

 

 

 

 

 

Number of

Shares or

Units of

Stock That

Have Not

Vested (#)

 

 

 

 

Market

Value of

Shares or

Units of

Stock That

Have Not

Vested ($)

 

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares, Units

or Other

Rights That

Have Not

Vested (#)

Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or Other

Rights That

Have Not

Vested ($)

 
  David Lovatt n/a n/a  
  Leonard K. Armenta, Jr. n/a n/a  

 

Employment Agreements

 

We have not entered into employments agreements with either of our executive officers.

 

 

 

  31  

 

 

Outstanding Equity Awards

 

During the years ended December 31, 2020 and 2019, our Board of Directors made no equity awards and no such award is pending.

Long-Term Incentive Plans

 

We currently have no long-term incentive plans.

 

Director Compensation

 

Our directors receive no compensation for their serving as directors of our company.

 

 

 

 

 

 

 

 

 

 

 

 

  32  

 

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

The table below does not give effect to certain events, as follows:

 

1. Convertible Note Conversion. The table below does not give effect to the issuance of up to _________ [15,000,000-3,750,000] shares of our common stock upon conversion of the Convertible Note. (See “Use of Proceeds,” “Plan of Distribution” and “Description of Securities—Convertible Promissory Note”).

 

2. Series B Convertible Preferred Stock Conversion. The table below does not give effect to the issuance of shares of our common stock upon conversion of the single outstanding share of Series B Convertible Preferred Stock, which is owned by Supplement Group (Europe) Ltd., a company owned by our officers and directors, David Lovatt and Leonard K. Armenta, Jr. At any time, Supplement Group (Europe) Ltd. has the right to convert the single share of Series B Convertible Preferred Stock into a number of shares of our common stock that would equal 80% of our outstanding common stock, as measured after such conversion. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Dilution—Ownership Dilution”).

 

In light of the caveats stated in the foregoing paragraph, the following table sets forth, as of the date of this Offering Circular, information regarding beneficial ownership of our common stock by the following: (a) each person, or group of affiliated persons, known by our company to be the beneficial owner of more than five percent of any class of our voting securities; (b) each of our directors; (c) each of the named executive officers; and (d) all directors and executive officers as a group. Beneficial ownership is determined in accordance with the rules of the SEC, based on voting or investment power with respect to the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock underlying convertible instruments, if any, held by that person are deemed to be outstanding if the convertible instrument is exercisable within 60 days of the date hereof.

 

  Share Ownership
Before This Offering
  Share Ownership
After This Offering
 
Name of
Shareholder
Number of
Shares
Beneficially
Owned
%
Beneficially
Owned (1)
  Number of
Shares
Beneficially
Owned
%
Beneficially
Owned (2)
Effective
Voting Power
Common Stock            
Executive Officers and Directors            
David Lovatt 153,858,108 (3) 39.58%   153,858,108 (3) 11.08% See Note 5
Leonard K. Armenta, Jr. 153,858,108 (3) 39.58%   153,858,108 (3) 11.08% and Note 6
Officers and directors, as a group (2 persons) 307,716,216 (4) 79.16%   307,716,216 (4) 22.16%  
             
Series A Preferred Stock (6)            
Supplement Group (Europe) LLC(7)  7,716,216 77.16%    7,716,216      77.16%   
Series B Preferred Stock (8)            
Supplement Group (Europe) LLC(7)  1 100%   1        100%  

__________

(1) Based on 388,682,458 shares outstanding, which includes (a) 380,966,242 issued shares and (b) 7,716,216 unissued shares that underlie shares of Series A Convertible Preferred Stock convertible within 60 days of the date of this Offering Circular, before this offering.
(2) Based on 1,388,682,458 shares outstanding, which includes (a) 1,380,966,242 issued shares, assuming the sale of all of the Offered Shares and (b) 7,716,216 unissued shares that underlie shares of Series A Convertible Preferred Stock convertible within 60 days of the date of this Offering Circular, after this offering.
(3) 150,000,000 of these shares have been issued; 3,858,108 of these shares have not been issued, but underlie shares of Series A Convertible Preferred Stock convertible within 60 days of the date of this Offering Circular that are owned by Supplement Group (Europe) Ltd. (see Note 7).
(4) 300,000,000 of these shares have been issued; 7,716,216 of these shares have not been issued, but underlie shares of Series A Convertible Preferred Stock convertible within 60 days of the date of this Offering Circular that are owned by Supplement Group (Europe) Ltd. (see Note 7).

 

 

 

  33  

 

 

(5) Our officers and directors, David Lovatt and Leonard K. Armenta, Jr., beneficially own, through their ownership of Supplement Group (Europe) Ltd. (see Note 6), the single outstanding share of Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Messrs. Lovatt and Armenta, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction.
(6) The shares of Series B Convertible Preferred Stock have the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. In addition the Series B Convertible Preferred Stock has the following conversion rights: at any time, the then-holder(s) of the Series B Convertible Preferred Stock, as a group, have the right to convert the Series B Convertible Preferred Stock into a number of shares of our common stock that would equal approximately 80% of our outstanding common stock, as measured after such conversion. (See “Dilution—Ownership Dilution”).

 

Series B Convertible Preferred Stock

 

Voting Rights. Currently, there is one (1) share of our Series B Preferred Stock issued and outstanding, which single share is owned by Supplement Group (Europe) Ltd., an entity owned 50% each by David Lovatt and Leonard K. Armenta, Jr., our officers and directors. Messrs. Lovatt and Armenta through their ownership Supplement Group (Europe) Ltd., control all corporate matters of our company.

 

The Series B Convertible Preferred Stock has the following voting rights: the holders of the Series B Convertible Preferred Stock, as a group, shall be entitled to a number of votes equal to four times the sum of all shares of our common stock outstanding and all other shares of preferred stock outstanding. Messrs. Lovatt and Armenta, as the owners of Supplement Group (Europe) Ltd., will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Description of Securities—Series B Convertible Preferred Stock”).

 

Conversion Rights. The Series B Convertible Preferred Stock has the following conversion rights: at any time, the then-holder(s) of the Series B Convertible Preferred Stock, as a group, have the right to convert the Series B Convertible Preferred Stock into a number of shares of our common stock that would equal approximately 80% of our outstanding common stock, as measured after such conversion. At any time, Supplement Group (Europe) Ltd., an entity owned 50% each by David Lovatt and Leonard K. Armenta, Jr., our officers and directors, could convert the single outstanding shares of Series B Convertible Preferred Stock and, upon such conversion, own approximately 80% of our common stock, as measure after such conversion. (See “Risk Factors—Risks Related to a Purchase of the Offered Shares” and “Description of Securities—Series B Convertible Preferred Stock”).

 

 

 

  34  

 

 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

Issuance of Capital Stock to Custodian

 

On January 8, 2021, in consideration of Rhonda Keaveney’s services as the custodian of our company, Small Cap Compliance, LLC, a company controlled by Ms. Keaveney, was issued (a) 7,716,216 shares of our Series A Convertible Preferred Stock and (b) one (1) share of our Series B Convertible Preferred Stock (collectively, the “Custodian Stock”). The Custodian Stock issued to Small Cap Compliance, LLC was valued at $40,000, in the aggregate.

 

Change-in-Control Transaction

 

On January 8, 2021, Small Cap Compliance, LLC sold the Custodian Stock to Supplement Group (Europe) Ltd., an entity owned 50% each by David Lovatt and Leonard K. Armenta, Jr., our current officers and directors, for $45,000 in cash. In conjunction with such transaction, our company’s custodian, Rhonda Keaveney, resigned as our sole officer and director and appointed David Lovatt and Leonard K. Armenta, Jr. to their current positions with our company.

 

Shares Issued for Services

 

On February 16, 2021, we issued a total of 300,000,000 shares of our common stock to our officers, David Lovatt (150,000,000 shares) and Leonard K. Armenta Jr. (150,000,000 shares), as compensation. The shares issued to Messrs. Lovatt and Armenta were valued at $0.001 per share, or $300,000, in the aggregate.

 

LEGAL MATTERS

 

Certain legal matters with respect to the Offered Shares offered by this Offering Circular will be passed upon by Newlan Law Firm, PLLC, Flower Mound, Texas. Newlan Law Firm, PLLC owns no securities of our company.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed an offering statement on Form 1-A with the SEC under the Securities Act with respect to the common stock offered by this Offering Circular. This Offering Circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. For further information with respect to us and our common stock, please see the offering statement and the exhibits and schedules filed with the offering statement. Statements contained in this Offering Circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement. The offering statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the offering statement may be obtained from such offices upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains all information regarding companies that file electronically with the SEC. The address of the site is www.sec.gov.

 

 

 

  35  

 

 

INDEX TO FINANCIAL STATEMENTS

 

 

Unaudited Financial Statements for the Nine Months Ended September 30, 2021 and 2020

 

  Page
Balance Sheets at September 30, 2021, and December 31, 2020 (unaudited) F-2
Statements of Operations For the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited) F-3
Statements of Changes in Stockholders’ Equity (Deficit) For the Nine Months Ended September 30, 2021 and 2020 (unaudited) F-4
Statements of Cash Flows For the Nine Months Ended September 30, 2021 and 2020 (unaudited) F-5
Notes to Unaudited Financial Statements F-6

 

 

 

Unaudited Financial Statements for the Years Ended December 31, 2020 and 2019

 

Balance Sheets at December 31, 2020 and 2019 (unaudited F-10
Statements of Operations For the Years Ended December 31, 2020 and 2019 (unaudited) F-11
Statements of Changes in Stockholders’ Equity (Deficit) For the Years Ended December 31, 2020 and 2019 (unaudited) F-12
Statements of Cash Flows For the Years Ended December 31, 2020 and 2019 (unaudited) F-13
Notes to Unaudited Financial Statements F-14

 

 

 

 

 

 

  F-1  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

BALANCE SHEETS

(Unaudited)

 

    As on September 30  
    2021     2020  
Assets            
Current Assets                
Cash and cash equivalents   $ 10,572     $  
                 
Total Current Assets     10,572        
                 
Other Assets            
                 
Total Assets   $ 10,572     $  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities                
Notes payable   $ 75,000     $  
Total Current Liabilities     75,000        
                 
Non-Current Liabilities                
Long term debt     15,000        
Total Non-Current Liabilities     15,000        
                 
Total Liabilities     90,000        

 

MEMBERS' EQUITY

               
Series A convertible preferred stock; 10,000,000 authorized; par value 0.0001
9,999,998 and 2,283,781 issued and outstanding as of September 30, 2021 and September 30, 2020, respectively
    999.62       228  
Series B convertible preferred stock; 10,000,000 authorized; par value 0.0001
1 and 0 shares issued and outstanding as of September 30, 2021 and September 30, 2020, respectively
    0.0001        
Common stock 200,000,000 authorized; par value $0.001;
380,996,242 and 80,996,242 shares issued and outstanding as of September 30, 2021 and September 30, 2020, respectively
    896,675       596,675  
Additional paid in capital     (557,675 )     (596,903 )
Retained earnings     (419,428 )      
Total stockholders' equity     (79,428 )      
                 
Total Liabilities and stockholders' equity   $ 10,572     $  

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

  F-2  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

STATEMENTS OF OPERATIONS

(Unaudited)

       

 

    For the three months ended September 30  
    2021     2020  
Revenue   $     $  
Cost of revenue            
Gross profit            
                 
Operating expenses:                
Advertising & marketing     3,500        
Legal & professional services     27,150        
Office expense and software     210        
Total expenses     30,860        
                 
Net loss   $ (30,860 )   $  

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

  F-3  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

     

 

Series A   Series B           Additional     Total Stockholders'  
Preferred Stock   Preferred Stock   Common Stock   Paid-In   Accumulated   Equity  
Shares   Amount   Shares   Amount   Shares   Amount   Capital   Deficit   (Deficit)  
Balance, December 31, 2018   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  
Net income for the year ended December 31, 2019                                    
Balance, December 31, 2019   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  
Net income for the year ended December 31, 2020                                    
Balance, December 31, 2020   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  
Issuance of Series A and B preferred stock for services   7,716,216   $ 771.62     1   $ 0.0001           $ (39,228.38 )       40,000  
Issuance of common stock for services                   300,000,000     300,000             300,000  
Net loss for the quarter ended, March 31, 2021                               (340,000 )   (340,000 )
Balance, March 31, 2021   9,999,997   $ 992.62     1   $ 0.0001     380,996,242   $ 896,675   $ (557,675 ) $ (340,000 ) $  
Net loss for the quarter ended, June 30, 2021                               (48,568 )   (48,568 )
Balance, June 30, 2021   9,999,997   $ 992.62     1   $ 0.0001     380,996,242   $ 896,675   $ (557,675 ) $ (388,568 ) $ (48,568 )
Net loss for the quarter ended, September 30, 2021                               (30,860 )   (30,860 )
Balance, September 30, 2021   9,999,997   $ 992.62     1   $ 0.0001     380,996,242   $ 896,675   $ (557,675 ) $ (419,428 ) $ (79,428 )

 

The accompanying notes are an integral part of these financial statements

 

 

  F-4  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

STATEMENT OF CASH FLOWS

(Unaudited)

     

 

    For the three months ended September 30  
    2021     2020  
             
Cash Flows from Operating Activities                
Net loss   $ (30,860 )   $  
Adjustments to reconcile net loss to net cash used in operating activities:                
Accounts payable (A/P)     (2,048 )      
                 
Total adjustments to reconcile net loss to net cash provided by operating activities:     (2,048 )      
                 
                 
Net cash used in operating activities     (32,908 )      
                 
Cash flows from investing activities                
Purchase of machinery and equipment            
                 
Net cash (used in) / provided by investing activities            
                 
Cash flows from financing activities                
Long term debt     15,000        
                 
Net cash provided by financing activities     15,000        
                 
Net decrease in cash and cash equivalents     (17,908 )      
Cash and cash equivalents at the beginning of the quarter     28,480        
Cash and cash equivalents at the end of the quarter   $ 10,572     $  

 

The accompanying notes are an integral part of these financial statements.

 

 

 

  F-5  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

 

 

Note 1 - Organization and Description of Business

 

Performance Drink Group, inc., (Formerly: Liberty International Holding Corporation) a Colorado corporation (“PDPG” or the “Company”). The Company was registered in the state of Florida in June 1997, and was re-instated in Florida on January 22, 2021. On March 18, 2021 the Company was re-domiciled to the state of Colorado.

 

On December 15, 2020, the 11th Judicial Circuit Court in Miami-Dade County, Florida entered an order appointing Small Cap Compliance, LLC, as custodian for LIHC. On December 16, 2020, Rhonda Keaveney was appointed as interim officer and director.

 

On January 11, 2021 the Company added a Convertible Preferred B series of stock. The Convertible Preferred B stock has 10,000,000 authorized shares at $0.0001 par value. Each share of Series B stock shall be convertible, at the option of the holder, into 4 times the sum of all shares of Common Stock outstanding and all other preferred shares outstanding, divided by the outstanding number of shares of Series B Stock

 

On January 8, 2021, for their services, Small Cap Compliance was issued 7,716,216 Preferred A shares and 1 Preferred B share. Those shares were subsequently sold to Supplement Group. On January, 8, 2021, Rhonda Keaveney resigned as the Company’s CEO, Treasurer, Secretary, and Director and appointed David Lovatt as its CEO, Treasurer, Secretary, and Director and Leonard K. Armenta Jr. as its president.

 

On February 16, 2021, the Company issued 300,000,000 shares of Common stock to its officers for compensation:

 

· 150,000,000 to David Lovatt

 

· 150,000,000 to Leonard K. Armenta Jr

 

On March 23, 2021 the Company amended its articles of incorporation to change its name to Performance Drink Group, Inc and filed a 10:1 reverse stock split

 

The Company has elected December 31 as its year end.

 

Note 2 - Going Concern

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established any source of revenue to cover its operating costs. These conditions raise substantial doubt about the company’s ability to continue as a going concern Company will engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

 

 

 

 

  F-6  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

 

 

Note 3 - Summary of Significant Accounting Policies Basis of Presentation

 

The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States (See Note 2) regarding the assumption that the Company is a “going concern”.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates.

 

Cash Equivalents

 

The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Consolidated cash and cash equivalents at September 30, 2021 were $10,572.

 

Income Taxes

 

The Company accounts for income taxes under ASC 740 “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

Basic Earnings (Loss) Per Share

 

The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company.

 

Fair Value of Financial Instruments

 

The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

 

 

 

  F-7  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

 

 

The Company follows FASB Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

· Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

· Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

· Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2021 and September 30, 2020. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value.

 

Share Based Expenses

 

ASC 718 “Compensation - Stock Compensation” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “Equity - Based Payments to Non- Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.

 

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

 

 

 

  F-8  

 

 

PERFORMANCE DRINK GROUP, INC.

(FORMERLY: LIBERTY INTERNATIONAL HOLDING CORPORATION)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021

 

 

Recently Issued Accounting Pronouncements

 

Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company.

 

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

 

Note 4 - Stockholder’s Equity

 

As of September 30, 2021 the issued and outstanding shares of the Company’s common stock were 380,966,242.

 

As of September 30, 2021 the issued and outstanding shares of the Company’s Series A convertible preferred stock were 9,999,998.

 

As of September 30, 2021 the issued and outstanding share of the Company’s Series B convertible preferred stock was 1.

 

 

 

 

 

 

  F-9  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

BALANCE SHEET 

(Unaudited)

 

 

    As on December 31  
    2020     2019  
Assets            
Current Assets                
Cash and cash equivalents   $     $  
                 
Total Current Assets            
                 
Other Assets            
                 
Total Assets   $     $  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current Liabilities                
Notes payable   $     $  
Total Current Liabilities            
                 
Non-Current Liabilities                
Long term debt            
Total Non-Current Liabilities            
                 
Total Liabilities            
                 

MEMBERS' EQUITY

               

Series A convertible preferred stock; 10,000,000 authorized; par value 0.0001

2,283,781 issued and outstanding as of December 31, 2020 and December 31, 2019

     228        228   

Common stock 200,000,000 authorized; par value $0.001;

80,996,242 shares issued and outstanding at December 31, 2020 and December 31, 2019

    596,675       596,675   
Additional paid in capital     (596,903 )     (596,903 )
Retained earnings            
Total stockholders' equity            
                 
Total Liabilities and stockholders' equity   $     $  

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

  F-10  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

STATEMENTS OF OPERATIONS

(Unaudited)

       

 

    For the years ended December 31  
    2020     2019  
Revenue   $     $  
Cost of revenue            
Gross profit            
                 
Operating expenses:                
Advertising & marketing            
Legal & professional services            
Office expense and software            
Total expenses            
                 
Net income   $     $  

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

 

  F-11  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

 

Series A   Series B           Additional     Total Stockholders'  
Preferred Stock   Preferred Stock   Common Stock   Paid-In   Accumulated   Equity  
Shares   Amount   Shares   Amount   Shares   Amount   Capital   Deficit   (Deficit)  
Balance, December 31, 2018   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  
Net income for the year ended December 31, 2019                                    
Balance, December 31, 2019   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  
Net income for the year ended December 31, 2020                                    
Balance, December 31, 2020   2,283,781   $ 228       $     80,996,242   $ 596,675   $ (596,903 ) $   $  

 

 

 

 

  F-12  

 

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

STATEMENT OF CASH FLOWS

(Unaudited)

   

 

   

For the years ended December 31

 
      2020       2019  
                 
Cash Flows from Operating Activities                
Net income   $     $  
Adjustments to reconcile net income to net cash provided by operating activities:                
Accounts payable (A/P)            
                 
Total adjustments to reconcile net income to net cash provided by operating activities:            
                 
Net cash provided by operating activities            
                 
Cash flows from investing activities                
Purchase of machinery and equipment            
                 
Net cash (used in) / provided by investing activities            
                 
Cash flows from financing activities                
Long term debt            
                 
Net cash provided by financing activities            
                 
Net increase in cash and cash equivalents            
Cash and cash equivalents at the beginning of the year            
Cash and cash equivalents at the end of the year   $     $  

 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

  F-13  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020

 

 

Note 1 - Organization and Description of Business

 

Liberty International Holding Corporation, a Colorado corporation (“LIHC” or the “Company”). The Company was registered in the state of Florida in June 1997, and was re-instated in Florida on January 22, 2021. On March 18, 2021 the Company was re-domiciled to the state of Colorado.

 

On December 15, 2020, the 11th Judicial Circuit Court in Miami-Dade County, Florida entered an order appointing Small Cap Compliance, LLC, as custodian for LIHC. On December 16, 2020, Rhonda Keaveney was appointed as interim officer and director.

 

The Company has elected December 31 as its year end.

 

Note 2 - Going Concern

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established any source of revenue to cover its operating costs. These conditions raise substantial doubt about the company’s ability to continue as a going concern Company will engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests of existing stockholders.

 

Note 3 - Summary of Significant Accounting Policies Basis of Presentation

 

The Financial Statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements have been prepared using the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States (See Note 2) regarding the assumption that the Company is a “going concern”.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates.

 

Cash Equivalents

 

The Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Consolidated cash and cash equivalents at December 31, 2020 and December 31, 2019 were $0.

 

 

 

  F-14  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020

 

 

Income Taxes

 

The Company accounts for income taxes under ASC 740 “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

Basic Earnings (Loss) Per Share

 

The Company computes basic and diluted earnings per share amounts in accordance with ASC Topic 260, Earnings per Share. Basic earnings per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company.

 

Fair Value of Financial Instruments

 

The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

 

The Company follows FASB Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures” which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

· Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

· Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

· Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2020 and December 31, 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts receivable, other current assets, accounts payable, accrued compensation and accrued expenses. The fair value of the Company’s notes payable is estimated based on current rates that would be available for debt of similar terms which is not significantly different from its stated value.

 

 

 

  F-15  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020

 

 

Share Based Expenses

 

ASC 718 “Compensation - Stock Compensation” prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “Equity - Based Payments to Non- Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.

 

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

Recently Issued Accounting Pronouncements

 

Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company.

 

We have reviewed the FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

 

Note 4 - Stockholder’s Equity

 

As of December 30, 2020 and December 30, 2019 the issued and outstanding shares of the Company’s common stock were 80,996,242.

 

As of December 30, 2020 and December 30, 2019 the issued and outstanding shares of the Company’s Series A convertible preferred stock were 2,283,781.

 

Note 5 – Subsequent Events

 

On January 11, 2021 the Company added a Convertible Preferred B series of stock. The Convertible Preferred B stock has 10,000,000 authorized shares at $0.0001 par value. Each share of Series B stock shall be convertible, at the option of the holder, into 4 times the sum of all shares of Common Stock outstanding and all other preferred shares outstanding, divided by the outstanding number of shares of Series B Stock.

 

 

 

 

  F-16  

 

 

LIBERTY INTERNATIONAL HOLDING CORPORATION

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2020

 

 

On January 8, 2021, for their services, Small Cap Compliance was issued 7,716,216 Preferred A shares and 1 Preferred B share. Those shares were subsequently sold to Supplement Group. On January, 8, 2021, Rhonda Keaveney resigned as the Company’s CEO, Treasurer, Secretary, and Director and appointed David Lovatt as its CEO, Treasurer, Secretary, and Director and Leonard K. Armenta Jr. as its president. On February 16, 2021, the Company issued 300,000,000 shares of Common stock to its officers for compensation:

 

· 150,000,000 to David Lovatt

 

· 150,000,0009 to Leonard K. Armenta Jr

 

On March 23, 2021 the Company amended its articles of incorporation to change its name to Performance Drink Group, Inc and filed a 10:1 reverse stock split.

 

 

 

 

 

 

 

 

 

 

 

  F-17  

 

 

PART III – EXHIBITS

 

Index to Exhibits

 

Exhibit No.:   Description of Exhibit   Incorporated by Reference to:

 

2. Charter and Bylaws

 
2.1   Articles of Incorporation (Florida)   Filed herewith
2.2   Articles of Amendment to Articles of Incorporation (Florida)   Filed herewith
2.3   Articles of Amendment to Articles of Incorporation (Florida)   Filed herewith
2.4   Articles of Amendment to Articles of Incorporation (Florida)   Filed herewith
2.5   Articles of Amendment to Articles of Incorporation (Florida)   Filed herewith
2.6   Articles of Amendment to Articles of Incorporation (Florida)   Filed herewith
2.7   Articles of Dissolution (Florida)   Filed herewith
2.8   Articles of Incorporation (Colorado)   Filed herewith
2.9   Articles of Amendment to Articles of Incorporation (Colorado)   Filed herewith
2.10   Statement of Correction (Colorado)   Filed herewith
2.11   Amended and Restated Articles of Incorporation (Colorado)   Filed herewith
2.12   Bylaws   Filed herewith

 

3. Instruments defining the rights of securityholders

 
3.1   First Amended Promissory Note, $75,000 principal amount, in favor of Elliott Polatoff   Filed herewith

 

4. Subscription Agreement

 
4.1   Subscription Agreement   Filed herewith

 

11. Consents

 
11.1   Consent of Newlan Law Firm, PLLC (see Exhibit 12.1)   Filed herewith

 

12. Opinion re: Legality

 
12.1   Opinion of Newlan Law Firm, PLLC   Filed herewith
             

 

 

 

 

 

  18  

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Wheat Ridge, State of Colorado, on January 7, 2022.

 

 

PERFORMANCE DRINK GROUP, INC.

 

 

By: /s/ David Lovatt

David Lovatt

Chief Executive Officer

 

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

 

 

 

 

By: /s/ David Lovatt

David Lovatt

Chief Executive Officer, Acting Chief

Financial Officer [Principal Accounting

Officer], Secretary and Director

 

 

January 7, 2022

 

 

 

By: /s/ Leonard K. Armenta, Jr.

Leonard K. Armenta, Jr.

President and Director

 

 

January 7, 2022

 

 

 

 

 

 

  19  

 

Exhibit 2.1

PPSi. 07 6/11/97 FLORIDA DIVISI 01" CORPOAATia - 15 PUBLIC l \ CCESS SYS'ml ELECTRONIC FILJN:l COVER Slll!:l!:r I I ( H9700000965 3 l ) l ) TO: DIVISION OP' CORPORATIONS FROM: CORPORATI! C!IEA'l'IONS INI'ERNA CONTACT: J81111U C IWU&Qb& ':!) "'" \ - ."" ,:! ) 4:41 PM PA X # 1 (904) 922 - 4001 FAX t: =•: 073171003004 (305) 672 - 9110 PHONE: (305)672 - 0686 NAME : DE11M A LASER , IN:. AUDI T NUMBE R •••••• H97000009653 llOC TYPE••••••••••FU>RIOA PROFIT CORPORATIOO OR I'. A. CERl' . O F STA'l'U S • • l CERT. COPil;:S•••••• 0 PAG&q• • • • • • • 4 DEL.M&'lllOD . • FAX ESl'.CHARGE •• $78.75 N0'1'E: PLEASE PRINT THIS PAGE AND USE IT AS A COVER SHKIW. Tn'E '1'HE FAX AUDIT NUMBER ON THE 'l'Oli' AND llO'l'1'al OF ALL PAGFS OF THE IlO(llEff j;!v, \ D rm rn - ..J ► : - :, :rro, J.;.:. -- (.'')·'. ··n ., - ... Q nuu ,1 l r , ' i ...... rr 1 s· .. . , r.:, rcn : o ;o> (._ : C ,: N ::i:: rn :,,,. - ;;I U1 - ..J O -- i m )> o. TB R JU N 1 2 199f

 
 

( " \ f. 1 t. 06/11/1997 17:00 30567291:rr,r:.c, \ \ Jt:. l,.I CFFICE H97000009653 t , b I 1_:.. --- _. - ::. -- ARTICLES O F INCORPORATION Articl e I . Name The name of this Florida corporation is: Derma Laser Technology, Inc. Articl e II, Address Thf'I mailing address of the Coq,oration is : Derma LaserTechnology, Irie . 26 S Sunris e Avenue , Suit e 204 Palm Beach FL 33480 Articl e m , Reeistcrc d A nt The name and address of the registered agent of the Corporation is : Donald F . Mintmire 26S Sunris e Avenue , Suite 204 Pal m ·Beach .FL 33480 Articl e IY, Boar d o f Directors The name of each member of - the Corporation's Board of Directors is: . . Mar c Elie Asselinea1,1 µibov Ulianova The affairs of the Coq,oration shall be managed by a Board of Directors consisting of no less than one director_. _The number of directors may be increased or decreased · ·from time to time"in accordance with the Bylaws of the Corporation. The election of directors shall be done in accordance with the Bylaws. Toe directors shall be protected .from personal liability to the fullest extent permitted by applicable law. .• . Donal d F . Mlntmlro I FL.Ba r embe r 402435 · Mlntmlre & Auoclata ·2es sunrise Avenue , Suit e 204 Piifm Beach FL.33480. !561 - 832 - 5698 · . ! - 1"97000009653

 
 

06/11/1997 17:00 3056729110 MIAM I IFFICE H97000009853 Articl e Y , Capita l Stock The Corporation shall have the authority to issue 50 , 000 , 000 shares of common stock, par value $ . 0001 per share . The Corporation shall have the authority to issue 10 , 000 , 000 shares of preferred stock, par value $ . 0001 per share, which may be divided into series llnd with the preferences, limitations and relative rights determined by the Board of Directors . Articl e YI , Incoi:porator The name and address of the incorporator is: Donald F, Mintmire · · Mintmir e & Associates 26S Sunrise Avenue , Suit e 204 Pal m Beac h F L 33480 Articl e YD , Cm:porat e Existence ., . These Articles of Incorporation shall become effective and the corporate existence will begin on Jun e 11, 1997. The undersigned incorporator executed these Articles of Incorporation on Jun e 11, 1997 . ·. . . - 2 DONAID F . MINTMIRB Bria n R . Foo l u attorney - in - fact . ' . Donal d F . Mlntmlre I F L Ba r Member 402435 Mlntmlre & Aaaoolat111 26 5 Sunris e Avenue , Suit e 204 · Pel m Beac h FL 33480 56 1 832•!5696. H 7000009663 PAGE 09

 
 

06/11/1997 17 : 00 3056729110 MIAMI CFFICE H97000009653 CERTIFICAT E O F DESIGNATION REGISTERED AGENT/OFFICE CORPORATION: Derma Laser Technology, Inc. RErnsmrn AGENT/OFFICE: Donald F. Mintmire 265 Sunris e A venue, Suit e 204 Pal m Beac h F L 33480 I agree to act as registered agent to accept service of process for the corporation named above at the place designated in this Certificate . I . agree to comply with the provisions of all statutes relating to the proper and complete performance of the registered agent duties . I am familiar with and accept the obligations of the • ·registered agent position . . · ·DONALD . Bria n R . Fon s a s attorney - in - fact Date: Jun e 11, 1997 Donal d F. Mlntmlra I F L Ba r Member 402435 • Mlntmlra & Assoclatoa 265 Sunrise Avenue, Suite 204 Palm Beach Fl 33480 · 6 .. 81 - 832 - 6696 H97000009853

 

Exhibit 2.2

ATIORNEYS AT LAW April 27, 1998 265 SUNRISE AVENUE SUITE 204 PALM BEACH, FLORIDA 33480 TEL: (561) 832 - 5696 FAX: (561) 659 - 5371 Secretary of State Staie of Florida Division of Corporations P.O. Box 6327 Tallahassee, FL 32314 Re: Derma Laser Technology, Inc . EIN: 65 - 0759512 Gentlemen: Enclosed please find an original and one copy of the Amended Articles of Incorporation for Derma Laser Technology, Inc . to be filed . The Amendment is solely to change the name of the corporation from Derma Laser Technology, Inc . to Eastern Pacific Energy Corporation . We also enclose a check in the amount of $ 87 . 50 which represents the filing fee and certified copy fee for this request . Kindly file the Amended Articles of Incorporation and mail date stamped received copy back to our office . If you have any questions or require additional information, please let us know at 561 - 832 - 5696 . Very truly yours, .. DFM/lrc Encls D M f - Donald F. Mintrmre 0 .,. .,.., MAY 8 1998 f

 
 

'J= - 22 - 1 998 1 1 , 56AM FROM CORPORATE OFFICE 3102715501 Date : 418198 Time : 1 1 :21:SOJ \ II M!HTM!R e S . FISSOCIATES ARDa BS OI' P.2 561 S32 56SG P.02/03 The name of the corporation shall be changed do business ·as - Eastern P.acifi.c Energy Corporation. ai;jd lllla ) M ); Jta,i•mndmw lora n _.....,..,,,_,dLtil m « - CIIIDa tl • o. - a • . o m f' iS e S n 1la c d l M m lii a •M n ; t !' f :' : ƒ D "il l la ll a f f ; D a r re - ufl:llllaM: U • . - •mm 1111m t •f noi

 
 

j 4 22 - 1998 11,56AM FROM CORPORATE OFFICE 3102715501 Dote : 418/iia 'llmo : wl 1 $4 AM M INTM I R 5 & ASSOCIATES P.3 661 832 569G P.03. - '03 · "DUBOa flmd&t&:ota,:1t1. - ,a4'11CD 'sad0ftio m tfj?.o· / 7/ / l t'f ? • IOCl&fll; A.do,ptfoil of.i' - mend•mlt(•) - ' Ƒ TJut (•)wulluele - .mmned:tw.dlellllan;hQldm. Tlllll.m,mbm' '10UII I mst:firzlb c lail"Sld'"1!'{. - ) l77£r l I d for ' . . 0 '.l'hO t(s)waSl'WczOap,p!O - =dlt1dle UnouafiVDt1a&IRIUPL T/µ1,JfJllowlq..... Atl#,ut blt,JgM I .f1JJMl"=:;. - di ,.,.,,.,l'O#p'imtltWIO,_ OJiih&Gm ,nt(I}: "The muaber vfwa casi 1bt 1U IUM:illdnwnt( w - ..lworo ,...BiciNrt k • bY. ) liiiliii .•. C : • prup ) w::: - Zdl!J'tlle l;9' ·TNldlmldmeat( ltotmlotdfnerms'Wilhou i sb».Df>oJ.dar IICtJm l IDd aadoo - . .aot .. Clqlliu,d. Ƒ Ta . !11110Ad_,,( I ) --- - bJ'tll e widao m lbuelloJ4cr ICdaa ucl 11ioTe11n111ar wu• cc1. dilE:lll i fr - .,bdlwa - 4111..:mt& I CIR l8'f•lnl:o,.... . •••c w 11y thl ino;:.pdtl!IIZIJ L//V f e 5 P . l, e z / e_. TvPidfJl'pdnanf - i TOTA L P.03

 

Exhibit 2.3

 

Filed

July 13, 1999

Secretary of State

Tallahassee, Florida

 

ARTICLES OF AMENDMENT
TO
ARTICLES OF INCORPORATION
OF

 

Eastern Pacific Energy Corporation

 

Pursuant to the provisions of Section 607.1006, Florida Statutes, this corporation adopts the following articles of amendment to its articles of incorporation:

 

 

FIRST: Amendment(s) adopted:
   
  The name of the corporation shall be changed and do business as UTILISOURCE CORPORATION.
   
SECOND: If an amendment provides for an exchange, reclassification or cancellation of issued shares, provisions for implementing the amendment, if not contained in the amendment itself, are as follows.
   
THIRD:  
  The date of each amendment's adoption.
   
  July 7, 1999:
   
FOURTH: Adoption of Amendment(S):
   
 

The amendment was adopted by the board of directors without shareholder action and shareholder action was not required.

 

 

  Signed this 7th day of July 1999.
   
  Signature: /s/ James P. Lezie
                      James P. Lezie, Chief Executive officer

Exhibit 2.4

 

Filed September 14, 2007

Secretary of State

Tallahassee, Florida

 

ARTICLES OF AMENDMENT
TO
ARTICLES OF INCORPORATION
OF

UTILSOURCE CORPORATION

 

Pursuant to the provisions of Section 607.1006, Florida Statutes, this corporation adopts the following articles of amendment to its articles of incorporation:

 

 

FIRST: Amendment(s) adopted:
   
  The name of the corporation shall be changed and do business as Utilsource International Corporation.
   
SECOND: The date of this Amendment’s adoption is August 29, 2007.
   
THIRD: This amendment was adopted by the board of directors without shareholder action and shareholder action was not required.
   

 

 

  Signed this 29th day of August 2007
   
  Signature: /s/ James P. Lezie
                      James P. Lezie
                     Chairman of the Board & CEO
   

Exhibit 2.5

 

Filed

May 29, 2009

Secretary of State

Tallahassee Florida

 

 

ARTICLES OF AMENDMENT

TO

ARTICLES OF INCORPORATION

OF

UTILISOURCE INTERNATIONAL CORPORATION

(a Florida Corporation)

 

Pursuant to the provisions of Section 607.0704, Florida Statutes, this corporation adopts the following article of amendment to its articles of incorporation:

 

FIRST: The name of the corporation shall be changed and Article I shall accordingly be Amended to read:

 

The name of the corporation shall be WHOLE IN ONE ORGANICS, INC.

 

SECOND: The corporation shall increase the number of shares it is authorized to issue and Article V shall accordingly be Amended to read:

 

The Corporation shall have the authority to issue 50,000,000 shares of common stock, par value $.0001 per share. The Corporation shall have the authority to issue 10,000,000 shares of preferred stock, par value $.0001 per share, which may be divided into series and with the preferences, limitations and relative rights determined by the Board of Directors.

 

THIRD: The date of these amendment's adoption is June 14, 2009.

 

FOURTH: This amendment was adopted by a shareholder action without meeting wherein the number of votes cast in favor of the amendment exceeded the number required for its approval.

 

  Signed this 26th day of May 2009.
   
  Signature: /s/ James P. Lezie
                      James P. Lezie,
                      CEO/Chairman of the Board

Exhibit 2.6

 

Filed

March 13, 2012

Secretary of State

Tallahassee Florida

 

ARTICLES OF AMENDMENT

TO

ARTICLES OF INCORPORATION

OF

WHOLE IN ONE ORGANICS, INC.

(a Florida corporation)

 

Pursuant to the provisions of Section 607.0704, Florida Statutes, this corporation adopts the following article of amendment to its articles of incorporation:

 

FIRST: The name of the corporation shall be changed and Article I shall accordingly be Amended to read:

 

The name of the corporation shall be LIBERTY INTERNATIONAL HOLDING CORPORATION.

 

SECOND: The date of this amendment's adoption is April 2, 2012.

 

THIRD: This amendment was adopted by a shareholder action without meeting wherein the number of votes cast in favor of the amendment exceeded the number required for its approval.

 

  Signed this 8th day of March 2012.
   
  Signature: /s/ James P. Lezie
                      James P. Lezie
                      CEO/Chairman of the Board
 

Exhibit 2.7

 

Filed

March 18, 2021

Secretary of State

 

 

ARTICLES OF DISSOLUTION

 

 

Pursuant to section 607.1403, Florida Statutes, this Florida corporation submits the following Articles of Dissolution:

 

FIRST: The name of the corporation as currently filed with the Florida Department of State:
  LIBERTY INTERNATIONAL HOLDING CORPORATION
   
SECOND: The document number of the corporation: P97000051834
   
THIRD: The date dissolution was authorized: March 18, 2021
   
FOURTH: Dissolution was approved by the shareholders in the manner required by this chapter and by Articles of Incorporation.

 

I submit this document and affirm that the facts stated herein are true. I am aware that any false information submitted in a document to the Department of State constitutes a third degree felony as provided for in section 817.155, Florida Statutes.

 

 

Signature: DAVID LOVATT CEO
  Electronic Signature of Signing Officer, Director, Incorporator or Authorized Representative

 

 

Exhibit 2.8

 

 

Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.sos.state.co.us. ABOVE SPACE FOR OFFICE USE ONLY Street address Mailing address (leave blank if same as street address) (State) (ZIP/Postal Code) (City) (Province – if applicable) (Street number and name or Post Office Box information) ( S t a t e) (ZIP/Postal Code) (City) (Province – if applicable) . (Country) 3. The registered agent name and registered agent address of the corporation’s initial registered agent are (Last) (First) (Middle) (Suffix) Na m e (if an individual) or (if an entity) (Caution: Do not provide both an individual and an entity name.) Street address Mailing address (leave blank if same as street address) Articles of Incorporation for a Profit Corporation filed pursuant to † 7 - 102 - 101 and † 7 - 102 - 102 of the Colorado Revised Statutes (C.R.S.) 1. The domestic entity name for the corporation is _ L _ i b e _ r t _ y _ I _ n _ t _ e _ r n a _ t i _ o _ n _ a _ l _ H o _ l d _ i _ n _ g C _ o _ r _ p _ o _ r _ a _ t i _ o _ n . (Caution : The use of certain terms or abbreviations are restricted by law. Read instructions for more information.) 2. The principal office address of the corporation’s initial principal office is _ U _ n _ i _ te d _ S ta _ t _ e _ s (Country) _ 1 _ 7 _ 3 _ 2 1 _ s _ t _ A _ v _ e . (Street number and name) _ S _ u _ i _ te 2 _ 5 _ 9 _ 5 _ 5 _ N _ e _ w Y o _ r _ k _ N _ Y _ 1 _ 0 _ 1 _ 2 _ 8 _ R _ e _ g _ i _ s _ te re _ d A _ g e _ n _ ts In c _ . _ 1 _ 9 _ 4 _ 2 B _ r _ o _ a _ d _ w a _ y _ S t. (Street number and name) _ S _ u _ i _ te 3 _ 1 _ 4 _ C _ B _ o _ u _ l _ d _ e _ r CO _ 8 _ 0 _ 3 _ 0 _ 2 (City) (State) (ZIP/Postal Code) _ 1 _ 7 _ 3 _ 2 1 _ s _ t _ A _ v _ e . (Street number and name or Post Office Box information) _ S _ u _ i _ te 2 _ 5 _ 9 _ 5 _ 5 _ N _ e _ w Y o _ r _ k C O _ 1 _ 0 _ 1 _ 2 _ 8 . (City) (State) (ZIP/Postal Code) Colorado Secretary of State Date and Time: 03/18/2021 01:06 PM ID Number: 20211260565 Document number: 20211260565 Amount Paid: $50.00 ARTINC_PC Page 1 of 3 Rev. 8/5/2013

 
 

Na m e (if an individual) or (if an entity) (Caution : Do not provide both an individual and an entity name.) Mailing address (The following statement is adopted by marking the box.) ✓ The person appointed as registered agent above has consented to being so appointed. 4. The true name and mailing address of the incorporator are _ L _ o _ v _ a _ t _ t _ D _ a _ v _ i _ d (Last) (First) (Middle) (Suffix) (City) (State) (ZIP/Postal Code) _ N _ e _ w Y o _ r _ k _ U _ n _ i _ te d _ S ta _ t _ e _ s . (Province – if applicable) (Country) (If the following statement applies, adopt the statement by marking the box and include an attachment.) The corporation has one or more additional incorporators and the name and mailing address of each additional incorporator are stated in an attachment. 5. The classes of shares and number of shares of each class that the corporation is authorized to issue are as follows. The corporation is authorized to issue common shares that shall have unlimited voting rights and are entitled to receive the net assets of the corporation upon dissolution. Information regarding shares as required by section 7 - 106 - 101, C.R.S., is included in an attachment. 6. (If the following statement applies, adopt the statement by marking the box and include an attachment.) This document contains additional information as provided by law. 7. (Caution : Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.) (If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.) The de l a y ed e f f ec ti v e date and, i f a p p li cab l e, ti m e of t h i s do c u m ent i s / a r e . (mm/dd/yyyy hour:minute am/pm) Notice: Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is named in the document as one who has caused it to be delivered. _ 1 _ 7 _ 3 _ 2 1 _ s _ t _ A _ v _ e . (Street number and name or Post Office Box information) _ S _ u _ i _ te 2 _ 5 _ 9 _ 5 _ 5 _ N _ e _ w Y o _ r _ k _ N _ Y _ 1 _ 0 _ 1 _ 2 _ 8 ARTINC_PC Page 2 of 3 Rev. 8/5/2013

 
 

 

 

 

     

 

 

ARTICLES OF INCORPORATION

OF

LIBERTY INTERNATIONA HOLDING CORPORATION

 

ARTICLE I. NAME

 

The name of the corporation is Liberty International Holding Corporation (the “Corporation”).

 

ARTICLE II. REGISTERED OFFICE

 

The name and address of the Corporation’s registered office in the State of Colorado is:

 

Registered Agents, Inc.

1942 Broadway St., Suite 314C

Boulder, CO 80302

 

ARTICLE III. PURPOSE

 

The purpose or purposes of the corporation is to engage in any lawful act or activity for which corporations may be organized under Colorado Law.

 

ARTICLE IV. CAPITAL STOCK

 

The Corporation is authorized to issue three classes of shares to be designated, respectively, "Preferred Stock" and "Common Stock." The number of shares of Common Stock authorized to be issued is 500,000,000 (500,000,000). The number of shares of Preferred Stock authorized to be issued is Twenty Million (20,000,000). The Preferred Stock and the Common Stock shall each have a par value of $0.0001 per share.

 

(A) Provisions Relating to the Common Stock. Each holder of Common Stock is entitled to one vote for each share of Common Stock standing in such holder's name on the records of the Corporation on each matter submitted to a vote of the stockholders, except as otherwise required by law.

 

(B)           Pursuant to Pursuant to § 7-106-102 of the Colorado Revised Statutes Title 7, Corporations and Associations of the Corporation’s Articles of Incorporation the following shall constitute the designations of the Corporation’s Preferred Stock:

 

(1)           Designation of Series A Convertible Preferred Stock: 10,000,000 of the Corporation’s authorized shares of preferred stock are hereby designated as Series A Convertible Preferred Stock (the “Series A Stock”) having the following characteristics:

 

(i)            The Series A Stock shall entitle the holders the right to vote, either together with holders of the Corporation’s common stock, or as a separate class of shares, on any matter upon which the shareholders of common stock of the Corporation may vote, including but not limited to any resolutions purporting to vary any of their rights or create any class of capital stock ranking in priority to them or effect any reorganization which would disadvantage the Series A Stock relative to the shares of the Corporation’s common stock;

 

(ii)            Each share of Series A Stock shall be entitled to vote with the holders of common stock and holders of Series A Stock. The holder of each share of Series A Stock shall be entitled to the number of votes equal to the number of shares of Common Stock into which such share of Series A Stock could be converted at the record date for determination of the shareholders entitled to vote on such matters or, if no such record date is established at the date such vote is taken or any written consent of shareholders is solicited, such votes to be counted together with all other shares of the corporation having general voting power and not separately as a class to four times the sum of (a) all shares of Common Stock issued and outstanding at time of voting; plus (b) the total number of votes of all other classes of preferred stock which are issued and outstanding at the time of voting; divided by (c) the number of shares of Series AA Preferred Stock issued and outstanding at the time of voting.

 

 

 

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(iii)          The conversion rights for holders of Series A Stock shall be convertible without the payment of any additional consideration by the holder thereof and, at the option of the holder thereof, at any time after six months from the date hereof, after the date of issuance of such shares at the office of the Corporation or any transfer agent for the Preferred Stock. Each share of Series A Stock shall be convertible into one fully paid and nonassessable share of Common Stock of such series as has been determined by dividing the amount of Conversion Value ($1.50) by the Conversion Price ($1.50);

 

(2)          Designation of Convertible Series B Preferred Stock: 10,000,000 of the Corporation’s authorized shares of preferred stock are hereby designated as Series A Convertible Preferred Stock (the “Series B Stock”) having the following characteristics:

 

(b)     Authorized Shares. The number of authorized shares of Series B Stock shall be 10,000,000 (Ten Million) shares with a par value of $.0001.

 

(c)     Liquidation Rights. In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, after setting apart or paying in full the preferential amounts due to Holders of senior capital stock, if any, the Holders of Series B Stock and parity capital stock, if any, shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the Holders of junior capital stock, including Common Stock, an amount equal to $.0001 per share [the "Liquidation Preference"]. If upon such liquidation, dissolution or winding up of the Corporation, the assets of the Corporation available for distribution to the Holders of the Series B Stock and parity capital stock, if any, shall be insufficient to permit in full the payment of the Liquidation Preference, then all such assets of the Corporation shall be distributed ratably among the Holders of the Series B Stock and parity capital stock, if any. Neither the consolidation or merger of the Corporation nor the sale, lease or transfer by the Corporation of all or a part of its assets shall be deemed a liquidation, dissolution or winding up of the Corporation for purposes of this Section (c).

 

(d)     Dividends. The Series B Stock is not entitled to receive any dividends in any amount during which such shares are outstanding.

 

(e) Conversion Rights. Each share of Series B Stock shall be convertible, at the option of the Holder, into 4 times the sum of all shares of Common Stock outstanding and all other Preferred shares outstanding, divided by the outstanding number of shares of Series B Stock.”

 

(i)  Conversion Procedure. Upon written notice to the Holder, the Holder shall effect conversions by surrendering the certificate(s) representing the Preferred Series B Stock to be converted to the Corporation, together with a form of conversion notice satisfactory to the Corporation, which shall be irrevocable. Not later than five [5] business days after the conversion date, the Corporation will deliver to the Holder, (i) a certificate or certificates, which shall be subject to restrictive legends, representing the number of shares of Common Stock being acquired upon the conversion; provided, however, that the Corporation shall not be obligated to issue such certificates until the Series B Stock is delivered to the Corporation. If the Corporation does not deliver such certificate(s) by the date required under this paragraph (e) (i), the Holder shall be entitled by written notice to the Corporation at any time on or before receipt of such certificate(s), to receive 100 Series B Stock shares for every week the Corporations fails to deliver Common Stock to the Holder.

 

(ii) Adjustments on Stock Splits, Dividends and Distributions. If the Corporation, at any time while any Series B Stock is outstanding, (a) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock payable in shares of its capital stock [whether payable in shares of its Common Stock or of capital stock of any class], (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine outstanding shares of Common Stock into a smaller number of shares, or (d) issue reclassification of shares of Common Stock for any shares of capital stock of the Corporation, the Conversion Ratio shall be adjusted by multiplying the number of shares of Common Stock issuable by a fraction of which the numerator shall be the number of shares of Common Stock of the Corporation outstanding after such event and of which the denominator shall be the number of shares of Common Stock outstanding before such event. Any adjustment made pursuant to this paragraph (e)(iii) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification. Whenever the Conversion Ratio is adjusted pursuant to this paragraph, the Corporation shall promptly mail to the Holder a notice setting forth the Conversion Ratio after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

 

 

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(iii)   Adjustments on Reclassifications, Consolidations and Mergers. In case of reclassification of the Common Stock, any consolidation or merger of the Corporation with or into another person, the sale or transfer of all or substantially all of the assets of the Corporation or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, then each Holder of Series B Stock then outstanding shall have the right thereafter to convert such Series B Stock only into the shares of stock and other securities and property receivable upon or deemed to be held by Holders of Common Stock following such reclassification, consolidation, merger, sale, transfer or share exchange, and the Holder shall be entitled upon such event to receive such amount of securities or property as the shares of the Common Stock into which such Series B Stock could have been converted immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange would have been entitled. The terms of any such consolidation, merger, sale, transfer or share exchange shall include such terms so as to continue to give to the Holder the right to receive the securities or property set forth in this paragraph (e)(iv) upon any conversion following such consolidation, merger, sale, transfer or share exchange. This provision shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers or share exchanges.

 

(iv) Fractional Shares; Issuance Expenses. Upon a conversion of Series B Stock, the Corporation shall not be required to issue stock certificates representing fractions of shares of Common Stock but shall issue that number of shares of Common Stock rounded to the nearest whole number. The issuance of certificates for shares of Common Stock on conversion of Series B Stock shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder, and the Corporation shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

 

(f)      Voting Rights. Except as otherwise expressly provided herein or as required by law, the Holders of shares of Series B Stock shall be entitled to vote on any and all matters considered and voted upon by the Corporation's Common Stock. The Holders of the Series B Stock shall be entitled to 4 times the sum of all shares of Common Stock outstanding and all other Preferred shares outstanding, divided by the outstanding number of shares of Series B Stock.

 

(g)     Reservation of Shares of Common Stock. The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of Series B Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holders of Series B Stock, such number of shares of Common Stock as shall be issuable upon the conversion of the outstanding Series B Stock. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all outstanding Series B Stock, the Corporation will take such corporate action necessary to increase its authorized shares of Common Stock to such number as shall be sufficient for such purpose. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and non-assessable.

 

All other aspects of Article V shall remain unchanged.

 

ARTICLE V. BOARD OF DIRECTORS

 

(A)       Number. The number of directors constituting the entire Board shall be as fixed from time to time by vote of a majority of the entire Board, provided, however, that the number of directors shall not be reduced so as to shorten the term of any director at the time in office.

 

(B)           Vacancies. Vacancies on the Board shall be filled by the affirmative vote of the majority of the remaining directors, though less than a quorum of the Board, or by election at an annual meeting or at a special meeting of the stockholders called for that purpose.

 

(C)           The election of directors need not be by written ballot.

 

 

 

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ARTICLE VI. BYLAWS

 

In furtherance and not in limitation of the powers conferred by statute, the Board is expressly authorized to make, alter, amend or repeal the Bylaws of the Corporation.

 

ARTICLE VII. LIABILITY

 

To the fullest extent permitted by Colorado law as the same exists or as may hereafter be amended, no director of the Corporation shall be personally liable to the Corporation or its stockholders for or with respect to any acts or omissions in the performance of his or her duties as a director of the Corporation. Any amendment or repeal of this Article VII will not eliminate or reduce the affect of any right or protection of a director of the Corporation existing immediately prior to such amendment or repeal.

 

ARTICLE VIII. STOCKHOLDER MEETINGS

 

Meetings of stockholders may be held within or without the State of Colorado as the Bylaws may provide. The books of the Corporation may be kept outside the State of Colorado at such place or places as may be designated from time to time by the Board or in the Bylaws of the Corporation.

 

ARTICLE IX. AMENDMENT OF ARTICLES OF INCORPORATION

 

The Corporation reserves the right to amend, alter, change or repeal any provision contained in these Articles of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

 

I, THE UNDERSIGNED, being the Chief Executive Officer of Liberty International Holding Corporation I hereby declare and certify, under penalties of perjury, that this is my act and deed and the facts herein stated are true, and accordingly have hereunto set my hand this 18th day of March 2021.

 

   

/S/ David Lovatt

David Lovatt, Chief Executive Officer

 

 

 

 

 

 

 

 

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Exhibit 2.9

 

A M D _ P C Page 1 of 2 Rev. 12/20/2016 Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.sos.state.co.us. ABOVE SPACE FOR OFFICE USE ONLY Articles of Amendment filed pursuant to † 7 - 90 - 301, et seq. and † 7 - 110 - 106 of the Colorado Revised Statutes (C.R.S.) 1. For the entity, its ID number and entity name are ID number Entity name Notice : Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that such document is such individual's act and deed, or that such individual in good faith believes such document is the act and deed of the person on whose behalf such individual is causing such document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S. and, if applicable, the constituent documents and the organic statutes, and that such individual in good faith believes the facts stated in such document are true and such document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is identified in this document as one who has caused it to be delivered. 6. The true name and mailing address of the individual causing the document to be delivered for filing are ( L as t ) ( F irst) ( M idd l e ) ( Su f f i x) (Street name and number or Post Office Box information) (City) (Postal/Zip Code) (Province – if applicable) _ 2 _ 0 _ 2 _ 1 1 _ 2 _ 6 _ 0 _ 5 6 _ 5 (Colorado Secretary of State ID number) _ L _ i _ b _ e _ r _ t y I n t e _ r _ n _ a _ t _ i _ o _ n _ a _ l _ H o _ l d i n _ g C o _ r p o _ r _ a _ t i _ o _ n . 2. The new en ti t y na m e ( i f app li cab l e) i s _ P _ e _ r _ f _ o _ r _ m _ a n _ c _ e D _ r _ i n k _ G r _ o _ u _ p _ , _ I _ n _ c _ . . 3. (If the following statement applies, adopt the statement by marking the box and include an attachment.) 俺 This document contains additional amendments or other information. 4. If the amendment provides for an exchange, reclassification or cancellation of issued shares, the attachment states the provisions for implementing the amendment. 5. ( Caution : Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.) (If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.) The delayed effective date and, if applicable, time of this document is/are . (mm/dd/yyyy hour:minute am/pm) _ L _ o _ v _ a _ t _ t _ D _ a v _ i d _ 1 _ 7 _ 3 _ 2 1 _ s _ t A _ v _ e _ . _ S _ u _ i _ t _ e _ 2 _ 59 _ 5 _ 5 _ N _ ew Y _ o _ r _ k _ N _ Y _ 1 _ 0 _ 1 _ 2 8 (State) _ U _ n it _ e _ d S _ t _ a _ te s _ (Country – if not US) Colorado Secretary of State Date and Time: 03/23/2021 11:16 AM ID Number: 20211260565 Document number: 20211277260 Amount Paid: $25.00

 
 

A M D _ P C Page 2 of 2 Rev. 12/20/2016 (If the following statement applies, adopt the statement by marking the box and include an attachment.) This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user’s legal, business or tax advisor(s).

 
 

 

UNANIMOUS WRITTEN CONSENT OF THE

BOARD OF DIRECTORS FOR

LIBERTY INTERNATIONAL HOLDING CORPORATION

 

The undersigned, constituting all of members of the Board of Directors (the "Board") of Liberty International Holding Corporation, a Colorado corporation (the "Corporation"), by written consent pursuant to the authority contained in the corporate laws of the State of Colorado and without the formality of convening a meeting, do hereby consent to the following actions of the Company, to be effective as of the 19th day of March 2021.

 

WHEREAS the Board believes that it is in the best interests of the Corporation that it amend its Articles of Incorporation and effect a 1 for 10 reverse stock split.

 

WHEREAS the Board believes that it is in the best interests of the Corporation that it amend its Articles of Incorporation and change its name to Performance Drink Group, Inc.

 

Now therefore,

 

BE IT RESOLVED that the Corporation is hereby authorized to amend its Articles of Incorporation and effect a reverse stock split.

 

RESOLVED FURTHER that the Corporation is hereby authorized to amend its Articles of Incorporation and change its name.

 

RESOLVED FURTHER that the officers of the Corporation be and hereby are authorized, empowered and directed to take any and all actions and to execute, deliver and file any and all agreements, instruments and documents as the officer or officers so acting shall determine to be necessary or appropriate to consummate the transactions contemplated by the foregoing resolutions. The taking of such action is to be conclusive evidence that the same was deemed to be necessary or appropriate and was authorized hereby.

 

 

 

 

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The undersigned, constituting the entire Board of Directors, hereby consent to and adopt the foregoing.

 

/s/ David Lovatt   /s/ Leonard K. Armenta, Jr.
David Lovatt, Director   Leonard K. Armenta,Jr., Director

 

 

State of FLORIDA

 

County of SAINT JOHNS

 

This record was signed and sworn to on 22nd Day of March, 2021 by David W. Lovatt and Leonard K. Armenta, Jr.

 

 

/s/ Deirdre A. Bennett-Kovalik

Notary Signature

 

 

  2  

 

Exhibit 2.10

 

 

Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.sos.state.co.us. ABOVE SPACE FOR OFFICE USE ONLY Statement of Correction Correcting Information for Historical Purposes filed pursuant to † 7 - 90 - 305 of the Colorado Revised Statutes (C.R.S.) 1. The entity ID number and the entity name, or, if the entity does not have an entity name, the true name are Entity ID number Entity name or True name _ 2 _ 0 _ 2 _ 1 1 _ 2 _ 6 _ 0 _ 5 6 _ 5 (Colorado Secretary of State ID number) _ P e _ r f _ o _ r _ m a _ n _ c _ e D _ r _ i _ n _ k _ G r _ o _ u _ p _ , I n _ c _ . . 2. The docu m ent nu m ber of t he f il ed docu m ent t hat i s co rr ec t ed i s _ 2 _ 0 _ 2 _ 1 1 _ 2 _ 7 _ 7 _ 2 6 _ 0 . 3. (The following statement is adopted by marking the box.) ✓ The information contained in the filed document identified above that is incorrect is identified in the attachment and such information, as corrected, is stated in the attachment. 4. (If applicable, adopt the following statement by marking the box and include an attachment.) ✓ This document contains additional information as provided by law. Notice: Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that such document is such individual's act and deed, or that such individual in good faith believes such document is the act and deed of the person on whose behalf such individual is causing such document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S. and, if applicable, the constituent documents and the organic statutes, and that such individual in good faith believes the facts stated in such document are true and such document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is identified in this document as one who has caused it to be delivered. 5. The true name and mailing address of the individual causing this document to be delivered for filing are _ L _ o _ v _ a _ t _ t _ D _ av _ id (Last) (First) (Middle) (Suffix) _ 1 _ 7 _ 3 _ 2 1 _ s _ t A _ v _ e _ . (Street number and name or Post Office Box information) _ S _ u _ i _ t _ e _ 2 _ 5 9 _ 5 _ 5 _ N _ ew Y _ o _ r _ k _ N _ Y _ 1 _ 0 _ 1 _ 28 (City) (State) (ZIP/Postal Code) _ 1 _ 0 _ 1 _ 2 8 _ U _ n it _ e _ d S _ t _ a _ te s _. (Province – if applicable) (Country) Colorado Secretary of State Date and Time: 04/15/2021 04:36 PM ID Number: 20211260565 Document number: 20211362415 Amount Paid: $10.00 CORRECT_HIST Page 1 of 2 Rev. 12/01/2012

 
 

(If applicable, adopt the following statement by marking the box and include an attachment.) This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user’s legal, business or tax advisor(s). CORRECT_HIST Page 2 of 2 Rev. 12/01/2012

 
 

 

 

 

 

UNANIMOUS WRITTEN CONSENT OF THE
BOARD OF DIRECTORS FOR

PERFORMANCE DRINK GROUP, INC.

 

The undersigned, constituting all of members of the Board of Directors (the "Board") of Performance Drink Group, Inc., a Colorado corporation (the "Corporation"), by written consent pursuant to the authority contained in the corporate laws of the State of Colorado and without the formality of convening a meeting, do hereby consent to the following actions of the Company, to be effective as of the 15th day of April 2021.

 

WHEREAS the Board believes that it is in the best interests of the Corporation that it not move forward with the 1 for 10 reverse stock split.

 

Now therefore,

 

BE IT RESOLVED that the Corporation is hereby authorized to amend its Articles of Incorporation and cancel the reverse stock split.

 

RESOLVED FURTHER that the Corporation is hereby authorized to amend its Articles of Incorporation and change its name.

 

RESOLVED FURTHER that the officers of the Corporation be and hereby are authorized, empowered and directed to take any and all actions and to execute, deliver and file any and all agreements, instruments and documents as the officer or officers so acting shall determine to be necessary or appropriate to consummate the transactions contemplated by the foregoing resolutions. The taking of such action is to be conclusive evidence that the same was deemed to be necessary or appropriate and was authorized hereby.

 

The undersigned, constituting the entire Board of Directors, hereby consent to and adopt the foregoing.

 

 

 

/s/ David Lovatt

David Lovatt, Director

 

 

/s/ Leonard K. Armenta Jr.

Leonard K. Armenta Jr., Director

 

 

Exhibit 2.11

 

Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.sos.state.co.us. ABOVE SPACE FOR OFFICE USE ONLY Amended and Restated Articles of Incorporation filed pursuant to † 7 - 90 - 301, et seq. and † 7 - 110 - 107 and † 7 - 90 - 304.5 of the Colorado Revised Statutes (C.R.S.) 1. For the entity, its ID number and entity name are ID number Entity name . 2. The new entity name (if applicable) is . 3. The amended and restated constituent filed document is attached. 4. If the amendment provides for an exchange, reclassification or cancellation of issued shares, the attachment states the provisions for implementing the amendment. 5. ( Caution : Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.) (If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.) The delayed effective date and, if applicable, time of this document is/are . (mm/dd/yyyy hour:minute am/pm) Notice : Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that such document is such individual's act and deed, or that such individual in good faith believes such document is the act and deed of the person on whose behalf such individual is causing such document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S. and, if applicable, the constituent documents and the organic statutes, and that such individual in good faith believes the facts stated in such document are true and such document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is identified in this document as one who has caused it to be delivered. 6. The true name and mailing address of the individual causing the document to be delivered for filing are (Street name and number or Post Office Box information) (Postal/Zip Code) (City) (Province – if applicable) _ 2 _ 0 _ 2 _ 1 1 _ 2 _ 6 _ 0 _ 5 6 _ 5 (Colorado Secretary of State ID number) _ P _ e _ r _ f _ o _ r _ m _ an _ c _ e D _ r _ ink _ Gr _ o _ u _ p _ , _ I _ n _ c _ . _ N _ ew _ l _ a _ n _ E _ r _ i _ c ( L as t ) ( F irst) ( M idd l e ) ( Su f f i x) _ 2 _ 2 _ 0 _ 1 L _ o n _ g P _ r _ a _ ir _ i _ e _ R o _ a _ d _ S _ u _ i _ t _ e _ 1 _ 07 _ - _ 7 _ 6 _ 2 _ F _ l _ o _ w _ e r _ M o _ u _ n _ d _ T _ X _ 7 _ 5 _ 0 _ 2 2 (State) _ U _ n it _ e _ d S _ t _ a _ te s _ (Country – if not US) Colorado Secretary of State Date and Time: 01/04/2022 10:37 AM ID Number: 20211260565 Document number: 20221012962 Amount Paid: $25.00 AMDRST_PC Page 1 of 2 Rev. 12/16/2016

 
 

(If the following statement applies, adopt the statement by marking the box and include an attachment.) This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user’s legal, business or tax advisor(s). AMDRST_PC Page 2 of 2 Rev. 12/16/2016

 
 

 

AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
PERFORMANCE DRINK GROUP, INC.

 

ARTICLE I. NAME

 

The name of the corporation is Performance Drink Group, Inc. (the “Corporation”).

 

ARTICLE II. REGISTERED OFFICE

 

The name and address of the Corporation’s registered office in the State of Colorado is:

 

Registered Agents, Inc.
1942 Broadway St.
Suite 314C 

Boulder, CO 80302

 

ARTICLE III. PURPOSE

 

The purpose or purposes of the corporation is to engage in any lawful act or activity for which corporations may be organized under Colorado Law.

 

ARTICLE IV. CAPITAL STOCK

 

The Corporation is authorized to issue two classes of shares to be designated, respectively, “Preferred Stock” and “Common Stock.” The number of shares of Common Stock authorized to be issued is Two Billion (2,000,000,000). The number of shares of Preferred Stock authorized to be issued is Twenty Million (20,000,000). The Preferred Stock and the Common Stock shall each have a par value of $0.0001 per share.

 

(A) Provisions Relating to the Common Stock. Each holder of Common Stock is entitled to one vote for each share of Common Stock standing in such holder’s name on the records of the Corporation on each matter submitted to a vote of the stockholders, except as otherwise required by law.

 

(B) Provisions Relating to the Preferred Stock. The following shall constitute the designations of the Corporation’s Preferred Stock:

 

(1) Designation of Series A Convertible Preferred Stock. 10,000,000 shares of the Corporation’s authorized shares of Preferred Stock are hereby designated as “Series A Convertible Preferred Stock” (the “Series A Stock”) and having the following characteristics:

 

(a) Voting. The Series A Stock shall possess no voting rights.

 

(b) Conversion. The Series A Stock shall be convertible without the payment of any additional consideration by the holder thereof, at the option of the holder thereof, at any time after six months after the date of issuance of such shares at the office of the Corporation or any transfer agent for the Series A Stock. Each share of Series A Stock shall be convertible into one (1) fully-paid and non-assessable share of Corporation Common Stock (the “Series A Conversion Ratio”).

 

Conversion Procedure. Upon written notice to the Corporation, the holder shall effect conversions by surrendering the certificate(s) representing the Series A Stock to be converted to the Corporation, together with a form of conversion notice satisfactory to the Corporation, which notice shall be irrevocable. Not later than five (5) business days after the conversion date, the Corporation shall deliver to the holder a certificate or certificates, on which shall be affixed applicable restrictive legends, representing the number of shares of Common Stock being issued upon the conversion; provided, however, that the Corporation shall not be obligated to issue any such certificate(s) until the certificate(s) representing the Series A Stock shall have been delivered to the Corporation. Should the Corporation fail to deliver such certificate(s) by the date required, the holder shall be entitled to be issued an additional 100,000 shares of Common Stock for each week that the Corporation shall fail to so deliver certificate(s) to the holder.

 

 

 

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Adjustments on Stock Splits, Dividends and Distributions. If the Corporation, at any time while any Series A Stock is outstanding, (1) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock payable in shares of its capital stock (whether payable in shares of its Common Stock or of capital stock of any class), (2) subdivide outstanding shares of Common Stock into a larger number of shares, (3) combine outstanding shares of Common Stock into a smaller number of shares or (4) issue reclassification of shares of Common Stock for any shares of capital stock of the Corporation, the Series A Conversion Ratio shall be adjusted by multiplying the number of shares of Common Stock issuable by a fraction of which the numerator shall be the number of shares of Common Stock of the Corporation outstanding after such event and of which the denominator shall be the number of shares of Common Stock outstanding before such event. Any adjustment made pursuant to this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification. Whenever the Series A Conversion Ratio is adjusted pursuant to this paragraph, the Corporation shall notify the holder of such revision to the Series A Conversion Ratio, setting forth a brief statement of the facts requiring such adjustment.

 

Adjustments on Reclassifications, Consolidations and Mergers. In case of reclassification of the Common Stock, any consolidation or merger of the Corporation with or into another person, the sale or transfer of all or substantially all of the assets of the Corporation or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, then each holder of Series A Stock then outstanding shall have the right thereafter to convert such Series A Stock only into the shares of stock and other securities and property receivable upon or deemed to be held by holders of Common Stock following such reclassification, consolidation, merger, sale, transfer or share exchange, and the holder shall be entitled upon such event to receive such amount of securities or property as the shares of the Common Stock into which such Series A Stock could have been converted immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange would have been entitled. The terms of any such consolidation, merger, sale, transfer or share exchange shall include such terms so as to continue to give to the holder the right to receive the securities or property set forth in this paragraph upon any conversion following such consolidation, merger, sale, transfer or share exchange. This provision shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers or share exchanges.

 

Fractional Shares; Issuance Expenses. Upon a conversion of Series A Stock, the Corporation shall not be required to issue stock certificates representing fractions of shares of Common Stock, but shall issue that number of shares of Common Stock rounded to the nearest whole number. The issuance of certificates for shares of Common Stock on conversion of Series A Stock shall be made without charge to the holder for any documentary, stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the holder, and the Corporation shall not be required to issue or deliver such certificates, unless or until the person or persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

 

  (c) Liquidation Rights. In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, after setting apart or paying in full the preferential amounts due to holders of senior capital stock, including the Series B Stock, the holders of Series A Stock and parity capital stock, if any, shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of junior capital stock, including the Common Stock, an amount equal to $.0001 per share (the “Series A Liquidation Preference”). If upon such liquidation, dissolution or winding up of the Corporation, the assets of the Corporation available for distribution to the holders of the Series A Stock and parity capital stock, if any, shall be insufficient to permit in full the payment of the Series A Liquidation Preference, then all such assets of the Corporation shall be distributed ratably among the holders of the Series A Stock and parity capital stock, if any. Neither the consolidation or merger of the Corporation nor the sale, lease or transfer by the Corporation of all or a part of its assets shall be deemed a liquidation, dissolution or winding up of the Corporation for purposes of this paragraph.

 

 

 

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  (d) Dividends. The Series A Stock is not entitled to receive any dividends.

 

(2) Designation of Convertible Series B Preferred Stock. 10,000,000 shares of the Corporation’s authorized shares of Preferred Stock are hereby designated as “Series B Convertible Preferred Stock” (the “Series B Stock”) and having the following characteristics:

 

(a) Voting. Except as otherwise expressly provided herein or as required by law, the holders of shares of the Series B Stock shall be entitled to vote on any and all matters considered and voted upon by the Corporation’s Common Stock. Each share of the Series B Stock shall be entitled to a number of votes equal to four (4) times the sum of all shares of Common Stock outstanding and all other shares of Preferred Stock outstanding, divided by the outstanding number of shares of the Series B Stock.

 

(b) Conversion. The Series B Stock shall be convertible without the payment of any additional consideration by the holder thereof, at the option of the holder thereof, at any time after the date of issuance of such shares at the office of the Corporation or any transfer agent for the Series B Stock. Each share of Series B Stock shall be convertible into a number of shares equal to four (4) times the sum of all shares of Common Stock outstanding and all other shares of Preferred Stock outstanding, divided by the outstanding number of shares of Series B Stock (the “Series B Conversion Ratio”).

 

Conversion Procedure. Upon written notice to the Corporation, the holder shall effect conversions by surrendering the certificate(s) representing the Series B Stock to be converted to the Corporation, together with a form of conversion notice satisfactory to the Corporation, which notice shall be irrevocable. Not later than five (5) business days after the conversion date, the Corporation shall deliver to the holder a certificate or certificates, on which shall be affixed applicable restrictive legends, representing the number of shares of Common Stock being issued upon the conversion; provided, however, that the Corporation shall not be obligated to issue any such certificate(s) until the certificate(s) representing the Series B Stock shall have been delivered to the Corporation. Should the Corporation fail to deliver such certificate(s) by the date required, the holder shall be entitled to be issued an additional 1,000,000 shares of Common Stock for each week that the Corporation shall fail to so deliver certificate(s) to the holder.

 

Adjustments on Stock Splits, Dividends and Distributions. If the Corporation, at any time while any Series B Stock is outstanding, (1) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock payable in shares of its capital stock (whether payable in shares of its Common Stock or of capital stock of any class), (2) subdivide outstanding shares of Common Stock into a larger number of shares, (3) combine outstanding shares of Common Stock into a smaller number of shares or (4) issue reclassification of shares of Common Stock for any shares of capital stock of the Corporation, the Series B Conversion Ratio shall be adjusted by multiplying the number of shares of Common Stock issuable by a fraction of which the numerator shall be the number of shares of Common Stock of the Corporation outstanding after such event and of which the denominator shall be the number of shares of Common Stock outstanding before such event. Any adjustment made pursuant to this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification. Whenever the Series B Conversion Ratio is adjusted pursuant to this paragraph, the Corporation shall notify the holder of such revision to the Series B Conversion Ratio, setting forth a brief statement of the facts requiring such adjustment.

 

 

 

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Adjustments on Reclassifications, Consolidations and Mergers. In case of reclassification of the Common Stock, any consolidation or merger of the Corporation with or into another person, the sale or transfer of all or substantially all of the assets of the Corporation or any compulsory share exchange pursuant to which the Common Stock is converted into other securities, cash or property, then each holder of Series B Stock then outstanding shall have the right thereafter to convert such Series B Stock only into the shares of stock and other securities and property receivable upon or deemed to be held by holders of Common Stock following such reclassification, consolidation, merger, sale, transfer or share exchange, and the holder shall be entitled upon such event to receive such amount of securities or property as the shares of the Common Stock into which such Series B Stock could have been converted immediately prior to such reclassification, consolidation, merger, sale, transfer or share exchange would have been entitled. The terms of any such consolidation, merger, sale, transfer or share exchange shall include such terms so as to continue to give to the holder the right to receive the securities or property set forth in this paragraph upon any conversion following such consolidation, merger, sale, transfer or share exchange. This provision shall similarly apply to successive reclassifications, consolidations, mergers, sales, transfers or share exchanges.

 

Fractional Shares; Issuance Expenses. Upon a conversion of Series B Stock, the Corporation shall not be required to issue stock certificates representing fractions of shares of Common Stock, but shall issue that number of shares of Common Stock rounded to the nearest whole number. The issuance of certificates for shares of Common Stock on conversion of Series B Stock shall be made without charge to the holder for any documentary, stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the holder, and the Corporation shall not be required to issue or deliver such certificates, unless or until the person or persons requesting the issuance thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

 

Reservation of Shares of Common Stock. The Corporation covenants that it will at all times reserve and keep available out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of Series B Stock as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the holders of Series B Stock, such number of shares of Common Stock as shall be issuable upon the conversion of the outstanding Series B Stock. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all outstanding Series B Stock, the Corporation will take such corporate action necessary to increase its authorized shares of Common Stock to such number as shall be sufficient for such purpose. The Corporation covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid and non-assessable.

 

(c) Liquidation Rights. In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, after setting apart or paying in full the preferential amounts due to holders of senior capital stock, if any, the holders of Series B Stock and parity capital stock, if any, shall be entitled to receive, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the Holders of junior capital stock, including the Series A Stock and Common Stock, an amount equal to $.0001 per share (the “Series B Liquidation Preference”). If upon such liquidation, dissolution or winding up of the Corporation, the assets of the Corporation available for distribution to the holders of the Series B Stock and parity capital stock, if any, shall be insufficient to permit in full the payment of the Series B Liquidation Preference, then all such assets of the Corporation shall be distributed ratably among the holders of the Series B Stock and parity capital stock, if any. Neither the consolidation or merger of the Corporation nor the sale, lease or transfer by the Corporation of all or a part of its assets shall be deemed a liquidation, dissolution or winding up of the Corporation for purposes of this paragraph.

 

(d) Dividends. The Series B Stock is not entitled to receive any dividends.

 

 

 

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ARTICLE V. BOARD OF DIRECTORS

 

(A) Number. The number of directors constituting the entire Board of Directors shall be as fixed from time to time by vote of a majority of the entire Board of Directors; provided, however, that the number of directors shall not be reduced so as to shorten the term of any director at the time in office.

 

(B) Vacancies. Vacancies on the Board of Directors shall be filled by the affirmative vote of the majority of the remaining directors, though less than a quorum of the Board of Directors, or by election at an annual meeting or at a special meeting of the stockholders called for that purpose.

 

(C) No Written Ballot Required. The election of directors need not be by written ballot.

 

ARTICLE VI. BYLAWS

 

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, alter, amend or repeal the Bylaws of the Corporation.

 

ARTICLE VII. LIABILITY

 

To the fullest extent permitted by Colorado law as the same exists or as may hereafter be amended, no director of the Corporation shall be personally liable to the Corporation or its stockholders for or with respect to any acts or omissions in the performance of his or her duties as a director of the Corporation. Any amendment or repeal of this Article VII will not eliminate or reduce the affect of any right or protection of a director of the Corporation existing immediately prior to such amendment or repeal.

 

ARTICLE VIII. STOCKHOLDER MEETINGS

 

Meetings of stockholders may be held within or without the State of Colorado as the Bylaws may provide. The books of the Corporation may be kept outside the State of Colorado at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

 

ARTICLE IX. AMENDMENTS

 

The Corporation reserves the right to amend, alter, change or repeal any provision contained in these Amended and Restated Articles of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

 

I, THE UNDERSIGNED, being the Chief Executive Officer of Performance Drink Group, Inc., hereby declare and certify, under penalties of perjury, that this is my act and deed and the facts herein stated are true, and, accordingly, have hereunto set my hand this 4th day of January, 2022.

 

/s/ David Lovatt
David Lovatt

Chief Executive Officer

Performance Drink Group, Inc.

 

 

 

 

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Exhibit 2.12

 

Bylaws

of

Performance Drink Group, Inc.

A Colorado corporation

 

ARTICLE 1 -- SHAREHOLDERS

 

1.1  Annual Meeting. A meeting of shareholders shall be held each year at such time and on such date as determined by the Board of Directors.

 

1.2  Special Meeting. Special meetings of the shareholders, for any purpose or purposes, shall be held when directed by the board of directors.

 

1.3  Place of Meeting. The board of directors may designate any place, either within or without the state of Florida, as the place of meeting for any annual or special meeting of the shareholders.

 

1.4  Action Without a Meeting. Action required or permitted to be taken at any meeting of the shareholders may be taken without a meeting, without prior notice, and without a vote if the action is taken by the holders of outstanding shares of each voting group entitled to vote on it having not less than the minimum number of votes with respect to each voting group that would be necessary to authorize or take such action at a meeting at which all voting groups and shares entitled to vote were present and voted. To be effective, the action must be evidenced by one or more written consents describing the action taken, dated and signed by approving shareholders having the requisite number of votes of each voting group entitled to vote, and delivered to the corporation at its principal office in Florida or its principal place of business, or to the corporate Chief Executive or another officer or agent of the corporation having custody of the book in which proceedings of meetings of shareholders are recorded. No written consent shall be effective to take corporate action unless, within 60 days of the date of the earliest dated consent delivered in the manner required by this section, written consents signed by the number of holders required to take action are delivered to the corporation.

 

Any written consent may be revoked before the date that the corporation receives the required number of consents to authorize the proposed action. No revocation is effective unless in writing and until received by the corporation at its principal office or its principal place of business, or received by the corporate Chief Executive or other officer or agent of the corporation having custody of the book in which proceedings of meetings of shareholders are recorded.

 

Within 10 days after obtaining authorization by written consent, notice must be given to those shareholders who have not consented in writing or who are not entitled to vote on the action. The notice shall fairly summarize the material features of the authorized action and, if the action is one for which dissenters' rights are provided under the articles of incorporation or by law, the notice shall contain a clear statement of the right of dissenting shareholders to be paid the fair value of their shares on compliance with applicable law.

 

A consent signed as required by this section has the effect of a meeting vote and may be described as such in any document.

 

Whenever action is taken as provided in this section, the written consent of the shareholders consenting or the written reports of inspectors appointed to tabulate such consents shall be filed with the minutes of proceedings of shareholders.

 

1.5  Notice of Meeting. Except as provided by Florida law, written notice stating the place, day, and hour of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than 10 nor more than 60 days before the date of the meeting, either personally or by first-class mail, by, or at the direction of, the president or the Chief Executive, or the officer or other persons calling the meeting, to each shareholder of record entitled to vote at the meeting. If the notice is mailed at least 30 days before the date of the meeting, it may be effected by a class of United States mail other than first-class. If mailed, the notice shall be effective when mailed, if mailed postage prepaid and correctly addressed to the shareholder's address shown in the current record of shareholders of the corporation.

 

 

 

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When a meeting is adjourned to another time or place, it shall not be necessary to give any notice of the adjourned meeting if the time and place to which the meeting is adjourned are announced at the meeting at which the adjournment is taken. At the adjourned meeting any business may be transacted that might have been transacted on the original date of the meeting. If, however, after the adjournment the board of directors fixes a new record date for the adjourned meeting, a notice of the adjourned meeting shall be given as provided in this section to each shareholder of record on the new record date entitled to vote at such meeting.

 

1.6  Waiver of Notice of Meeting. Whenever any notice is required to be given to any shareholder, a waiver in writing signed by the person or persons entitled to such notice, whether signed before, during, or after the time of the meeting and delivered to the corporation for inclusion in the minutes or filing with the corporate records, shall be equivalent to the giving of such notice. Attendance of a person at a meeting shall constitute a waiver of (a) lack of or defective notice of the meeting, unless the person objects at the beginning of the meeting to the holding of the meeting or the transacting of any business at the meeting, or (b) lack of defective notice of a particular matter at a meeting that is not within the purpose or purposes described in the meeting notice, unless the person objects to considering the matter when it is presented.

 

1.7  Fixing of Record Date. In order that the corporation may determine the shareholders entitled to notice of, or to vote at, any meeting of shareholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or to demand a special meeting, the board of directors may fix, in advance, a record date, not more than 70 days before the date of the meeting or any other action. A determination of shareholders of record entitled to notice of, or to vote at, a meeting of shareholders shall apply to any adjournment of the meeting unless the board fixes a new record date, which it must do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.

 

If no prior action is required by the board, the record date for determining shareholders entitled to take action without a meeting is the date the first signed written consent is delivered to the corporation under Section 1.4 of these bylaws.

 

1.8  Shareholders' List. After fixing a record date for a meeting of shareholders, the corporation shall prepare an alphabetical list of the names of all its shareholders entitled to notice of the meeting, arranged by voting group with the address of, and the number, class, and series, if any, of shares held by, each shareholder. The shareholders' list must be available for inspection by any shareholder for 10 days before the meeting or such shorter time as exists between the record date and the meeting and continuing through the meeting at the corporation's principal office, at a place identified in the meeting notice in the city where the meeting will be held, or at the office of the corporation's transfer agent or registrar. Any shareholder of the corporation or the shareholder's agent or attorney is entitled on written demand to inspect the shareholders' list (subject to the requirements of Florida Law during regular business hours and at the shareholder's expense, during the period it is available for inspection.

 

The corporation shall make the shareholders' list available at the meeting of shareholders, and any shareholder or the shareholder's agent or attorney is entitled to inspect the list at any time during the meeting or any adjournment.

 

1.9  Voting Per Share. Except as otherwise provided in the articles of incorporation or by Florida Law, each shareholder is entitled to one vote for each outstanding share held by him or her on each matter voted at a shareholders' meeting.

 

1.10  Voting of Shares. Shares standing in the name of another corporation, domestic or foreign, may be voted by the officer, agent, or proxy designated by the bylaws of the corporate shareholder or, in the absence of any applicable bylaw, by a person or persons designated by the board of directors of the corporate shareholder. In the absence of any such designation or, in case of conflicting designation by the corporate shareholder, the chair of the board, the president, any vice president, the Chief Executive, and the treasurer of the corporate shareholder, in that order, shall be presumed to be fully authorized to vote the shares.

 

Shares held by an administrator, executor, guardian, personal representative, or conservator may be voted by him or her, either in person or by proxy, without a transfer of such shares into his or her name. Shares standing in the name of a trustee may be voted by the trustee, either in person or by proxy, but no trustee shall be entitled to vote shares held by him or her without a transfer of such shares into his or her name or the name of his or her nominee.

 

 

 

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Shares held by, or under the control of, a receiver, a trustee in bankruptcy proceedings, or an assignee for the benefit of creditors may be voted by such person without the transfer into his or her name.

 

If shares stand of record in the names of two or more persons, whether fiduciaries, members of a partnership, joint tenants, tenants in common, tenants by the entirety, or otherwise, or if two or more persons have the same fiduciary relationship respecting the same shares, unless the Chief Executive of the corporation is given notice to the contrary and is furnished with a copy of the instrument or order appointing them or creating the relationship wherein it is so provided, then acts with respect to voting shall have the following effect: (a) if only one of the persons votes, in person or by proxy, that act binds all; (b) if more than one votes, in person or by proxy, the act of the majority so voting binds all; (c) if more than one votes, in person or by proxy, but the vote is evenly split on any particular matter, each faction is entitled to vote the share or shares in question proportionally; or (d) if the instrument or order so filed shows that any such tenancy is held in unequal interest, a majority or a vote evenly split for purposes hereof shall be a majority or a vote evenly split in interest. The principles of this paragraph shall apply, as far as possible, to execution of proxies, waivers, consents, or objections and for the purpose of ascertaining the presence of a quorum.

 

1.11  Proxies. Any shareholder of the corporation, other person entitled to vote on behalf of a shareholder under Florida Law, or attorney-in-fact for such persons, may vote the shareholder's shares in person or by proxy. Any shareholder may appoint a proxy to vote or otherwise act for him or her by signing an appointment form, either personally or by an attorney-in-fact. An executed telegram or cablegram appearing to have been transmitted by such person, or a photographic, photostatic, or equivalent reproduction of an appointment form, shall be deemed a sufficient appointment form.

 

An appointment of a proxy is effective when received by the Chief Executive of the corporation or such other officer or agent authorized to tabulate votes, and shall be valid for up to 11 months, unless a longer period is expressly provided in the appointment form.

 

The death or incapacity of the shareholder appointing a proxy does not affect the right of the corporation to accept the proxy's authority unless notice of the death or incapacity is received by the Chief Executive or other officer or agent authorized to tabulate votes before the proxy exercises authority under the appointment.

 

An appointment of a proxy is revocable by the shareholder unless the appointment form conspicuously states that it is irrevocable and the appointment is coupled with an interest.

 

1.12  Quorum. Shares entitled to vote as a separate voting group may take action on a matter at a meeting only if a quorum of those shares exists with respect to that matter. Except as otherwise provided in the articles of incorporation or by law, a majority of the shares entitled to vote on the matter by each voting group, represented in person or by proxy, shall constitute a quorum at any meeting of shareholders.

 

Once a share is represented for any purpose at a meeting, it is deemed present for quorum purposes for the remainder of the meeting and for any adjournment of that meeting unless a new record date is or must be set for that adjourned meeting.

 

1.13  Effect of Action. If a quorum is present, action on a matter (other than the election of directors) by a voting group is approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless a greater or lesser number of affirmative votes is required by the articles of incorporation or by law.

 

1.14  Voting for Directors. Directors will be elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present.

 

1.15  Inspectors of Election. Before each shareholders' meeting, the board of directors or president shall appoint one or more inspectors of election. On appointment, each inspector shall take and sign an oath to faithfully execute the duties of inspector at the meeting with strict impartiality and to the best of his or her ability. Inspectors shall determine the number of shares outstanding, the number of shares present at the meeting, and whether a quorum is present. The inspectors shall receive votes and ballots and determine all challenges and questions as to the right to vote. The inspectors shall count and tabulate all votes and ballots and determine the result. Inspectors shall perform other duties as are proper to conduct elections of directors and votes on other matters with fairness to all shareholders. Inspectors shall make a certificate of the results of elections of directors and votes on other matters. No inspector shall be a candidate for election as a director of the corporation.

 

 

 

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ARTICLE 2 -- BOARD OF DIRECTORS

 

2.1  General Powers. Except as provided in the articles of incorporation and by law, all corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation shall be managed under the direction of, its board of directors.

 

2.2  Number, Terms, Classification, and Qualification. The board of directors of the corporation shall consist of a minimum of one and a maximum of nine persons. The number of directors may at any time and from time to time be increased or decreased by action of either the shareholders or the board of directors, but no decrease in the number of directors shall have the effect of shortening the term of any incumbent director. A director must be a natural person of at least 18 years of age, but need not be a citizen of the United States of America, a resident of Florida, or a shareholder of the corporation. Each director shall hold office until a successor has been elected and qualified or until an earlier resignation, removal from office, or death.

 

2.3  Regular Meetings. An annual regular meeting of the board of directors shall be held without notice immediately after, and at the same place as, the annual meeting of the shareholders and at such other time and place as may be determined by the board of directors. The board may, at any time and from time to time, provide by resolution the time and place, either within or without the state of Florida, for the holding of the annual regular meeting or additional regular meeting of the board without other notice than the resolution.

 

2.4  Special Meetings. Special meetings of the board of directors may be called by the chair of the board, the president, or any two directors.

 

The person or persons authorized to call special meetings of the board may designate any place, either within or without the state of Florida, as the place for holding any special meeting of the board called by them. If no designation is made, the place of the meeting shall be the principal office of the corporation in Florida.

 

Notice of any special meeting of the board may be given by any reasonable means, oral or written, and at any reasonable time before the meeting. The reasonableness of notice given in connection with any special meeting of the board shall be determined in light of all pertinent circumstances. It shall be presumed that notice of any special meeting given at least two days before the meeting either orally (by telephone or in person), or by written notice delivered personally or mailed to each director at his or her business or residence address, is reasonable. If mailed, the notice of any special meeting shall be deemed to be delivered on the second day after it is deposited in the United States mail, so addressed, with postage prepaid. If notice is given by telegram, it shall be deemed to be delivered when the telegram is delivered to the telegraph company. Neither the business to be transacted at, nor the purpose or purposes of, any special meeting need be specified in the notice or in any written waiver of notice of the meeting.

 

2.5  Waiver of Notice of Meeting. Notice of a meeting of the board of directors need not be given to any director who signs a written waiver of notice before, during, or after the meeting. Attendance of a director at a meeting shall constitute a waiver of notice of the meeting and a waiver of any and all objections to the place of the meeting, the time of the meeting, and the manner in which it has been called or convened, except when a director states, at the beginning of the meeting or promptly on arrival at the meeting, any objection to the transaction of business because the meeting is not lawfully called or convened.

 

2.6  Quorum. Each director including the Chairman of the Board of Directors [if any] shall be entitled to one Board Vote. A majority vote of the number of directors fixed by, or in the manner provided in, these bylaws shall constitute a quorum for the transaction of business; provided, however, that whenever, for any reason, a vacancy occurs in the board of directors, a quorum shall consist of a majority of the remaining directors until the vacancy has been filled.

 

2.7  Effect of Action. The act of a majority of the directors present at a meeting at which a quorum is present when the vote is taken shall be the act of the board of directors.

 

2.8  Presumption of Assent. A director of the corporation who is present at a meeting of the board of directors or a committee of the board when corporate action is taken shall be presumed to have assented to the action taken, unless he or she objects at the beginning of the meeting, or promptly on arrival, to holding the meeting or transacting specific business at the meeting, or he or she votes against or abstains from the action taken.

 

 

 

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2.9  Action Without a Meeting. Any action required or permitted to be taken at a meeting of the board of directors or a committee of it may be taken without a meeting if a consent in writing, stating the action so taken, is signed by all the directors. Action taken under this section is effective when the last director signs the consent, unless the consent specifies a different effective date. A consent signed under this section shall have the effect of a meeting vote and may be described as such in any document.

 

2.10  Meetings by Means of Conference Telephone Call or Similar Electronic Equipment. Members of the board of directors may participate in a meeting of the board by means of a conference telephone call or similar communications equipment if all persons participating in the meeting can hear each other at the same time. Participation by such means constitutes presence of person at a meeting.

 

2.11  Resignation. Any director may resign at any time by giving written notice to the corporation, the board of directors, or its chair. The resignation of any director shall take effect when the notice is delivered unless the notice specifies a later effective date, in which event the board may fill the pending vacancy before the effective date if it provides that the successor does not take office until the effective date.

 

2.12  Removal. Any director, or the entire board of directors, may be removed at any time, with or without cause, by action of the shareholders. If a director was elected by a voting group of shareholders, only the shareholders of that voting group may participate in the vote to remove that director. The notice of the meeting at which a vote is taken to remove a director must state that the purpose or one of the purposes of the meeting is the removal of the director or directors.

 

2.13  Vacancies. Any vacancy in the board of directors, including any vacancy created by an increase in the number of directors, may be filled by the affirmative vote of a majority of the remaining directors although less than a quorum of the board of directors, or by the shareholders.

 

2.14  Compensation. Each director may be paid the expenses, if any, of attendance at each meeting of the board of directors, and may be paid a stated salary as a director or a fixed sum for attendance at each meeting of the board of directors or both, as may from time to time be determined by action of the board of directors. No such payment shall preclude any director from serving the corporation in any other capacity and receiving compensation for those services.

 

ARTICLE 3 -- COMMITTEES OF THE BOARD OF DIRECTORS

 

The board of directors, by resolution adopted by a majority of the full board, may designate from among its members an executive committee and one or more other committees, each of which, to the extent provided in the resolution, shall have and may exercise all the authority of the board of directors, except as prohibited by Florida Law.

 

Each committee must have two or more members who serve at the pleasure of the board. The board of directors, by resolution adopted in accordance with this article, may designate one or more directors as alternate members of any committee, who may act in the place and stead of any absent member or members at any meeting of the committee.

 

ARTICLE 4 -- OFFICERS

 

4.1  Officers. The officers of the corporation shall be a chief executive officer, a president, a vice president, a Chief Executive, a treasurer, and any other officers and assistant officers as may be deemed necessary, and as shall be approved, by the board of directors. Any two or more offices may be held by the same person.

 

4.2  Appointment and Term of Office. The officers of the corporation shall be appointed annually by the board of directors at the first meeting of the board held after the shareholders' annual meeting. If the appointment of officers does not occur at this meeting, the appointment shall occur as soon thereafter as practicable. Each officer shall hold office until a successor has been duly appointed and qualified, or until an earlier resignation, removal from office, or death.

 

 

 

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4.3  Resignation. Any officer of the corporation may resign from his or her respective office or position by delivering notice to the corporation. The resignation is effective when delivered unless the notice specifies a later effective date. If a resignation is made effective at a later date and the corporation accepts the future effective date, the board of directors may fill the pending vacancy before the effective date if the board provides that the successor does not take office until the effective date.

 

4.4  Removal. Any officer of the corporation may be removed from his or her respective office or position at any time, with or without cause, by the board of directors.

 

4.5  President. The president shall be the chief executive officer of the corporation and shall, subject to the control of the board of directors, generally supervise and control all of the business and affairs of the corporation, and preside at all meetings of the shareholders, the board of directors, and all committees of the board of directors on which he or she may serve. In addition, the president shall possess, and may exercise, such power and authority, and shall perform such duties, as may from time to time be assigned to him or her by the board of directors, and as are incident to the offices of president and chief executive officer.

 

4.6  Vice Presidents. Each vice president shall possess, and may exercise, such power and authority, and shall perform such duties, as may from time to time be assigned to him or her by the board of directors.

 

4.7  Chief Executive. The Chief Executive shall keep the minutes of the proceedings of the shareholders and of the board of directors in one or more books provided for that purpose; see that all notices are duly given in accordance with the provisions of these bylaws or as required by law; be custodian of the corporate records and the seal of the corporation; and keep a register of the post office address of each shareholder of the corporation. In addition, the Chief Executive shall possess, and may exercise, such power and authority, and shall perform the duties, as may from time to time be assigned to him or her by the board of directors and as are incident to the office of Chief Executive.

 

4.8  Treasurer. The treasurer shall have charge and custody of, and be responsible for, all funds and securities of the corporation; receive and give receipts for money due and payable to the corporation from any source whatsoever; and deposit all such money in the name of the corporation in such banks, trust companies, or other depositaries as shall be used by the corporation. In addition, the treasurer shall possess, and may exercise, such power and authority, and shall perform such duties, as may from time to time be assigned to him or her by the board of directors and as are incident to the office of treasurer.

 

4.9  Other Officers, Employees, and Agents. Each and every other officer, employee, and agent of the corporation shall possess, and may exercise, such power and authority, and shall perform such duties, as may from time to time be assigned to him or her by the board of directors, the officer appointing him or her, and the officer or officers who may from time to time be designated by the board to exercise supervisory authority.

 

4.10  Compensation. The compensation of the officers of the corporation shall be fixed from time to time by the board of directors.

 

ARTICLE 5 -- CERTIFICATES OF STOCK

 

5.1  Certificates for Shares. The board of directors shall determine whether shares of the corporation shall be uncertificated or certificated. If certificated shares are issued, certificates representing shares in the corporation shall be signed (either manually or by facsimile) by the president or vice president and the Chief Executive or an assistant Chief Executive and may be sealed with the seal of the corporation or a facsimile thereof. A certificate that has been signed by an officer or officers who later cease to hold such office shall be valid.

 

5.2  Transfer of Shares; Ownership of Shares. Transfers of shares of stock of the corporation shall be made only on the stock transfer books of the corporation, and only after the surrender to the corporation of the certificates representing such shares. Except as provided by Florida Law, the person in whose name shares stand on the books of the corporation shall be deemed by the corporation to be the owner thereof for all purposes, and the corporation shall not be bound to recognize any equitable or other claim to, or interest in, such shares on the part of any other person, whether or not it shall have express or other notice thereof.

 

 

 

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5.3  Lost Certificates. The corporation shall issue a new stock certificate in the place of any certificate previously issued if the holder of record of the certificate (a) makes proof in affidavit form that the certificate has been lost, destroyed, or wrongfully taken; (b) requests the issuance of a new certificate before the corporation has notice that the lost, destroyed, or wrongfully taken certificate has been acquired by a purchaser for value in good faith and without notice of any adverse claim; (c) at the discretion of the board of directors, gives bond in such form and amount as the corporation may direct, to indemnify the corporation, the transfer agent, and the registrar against any claim that may be made on account of the alleged loss, destruction, or theft of a certificate; and (d) satisfies any other reasonable requirements imposed by the corporation.

 

ARTICLE 6 -- ACTIONS WITH RESPECT TO SECURITIES

OF OTHER CORPORATIONS

 

Unless otherwise directed by the board of directors, the president or a designee of the president shall have power to vote and otherwise act on behalf of the corporation, in person or by proxy, at any meeting of shareholders of, or with respect to any action of shareholders of, any other corporation in which this corporation may hold securities and to otherwise exercise any and all rights and powers that the corporation may possess by reason of its ownership of securities in other corporations.

 

ARTICLE 7 – AMENDMENTS

 

These bylaws may be altered, amended, or repealed, and new bylaws may be adopted, by action of the board of directors. The shareholders of the corporation may alter, amend, or repeal these bylaws or adopt new bylaws even though these bylaws also may be amended or repealed by the board of directors.

 

ARTICLE 8 -- CORPORATE SEAL

 

The board of directors shall provide for a corporate seal that shall be circular and shall have the name of the corporation, the year of its incorporation, and the state of incorporation inscribed on it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exhibit 3.1

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH MAY BE THE LEGAL COUNSEL OPINION (AS DEFINED IN THE PURCHASE AGREEMENT)), IN A GENERALLY ACCEPTABLE FORM, THAT IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO AN APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

FIRST AMENDED PROMISSORY NOTE

 

Principal Amount: $75,000 New York, New York
Purchase Price: $75,000 March 24, 2021

amended as of December 21, 2021

 

FOR VALUE RECEIVED, Performance Drink Group, Inc., a Colorado corporation (the “Company”), hereby promises to pay to the order of Elliott Polatoff (the “Payee”), at the address specified for notice below, or such other place as the Payee may designate to Company in writing from time to time, the principal sum of $75,000 in lawful money of the United States of America on September 1, 2021 (the “Maturity Date”), in addition to all other amounts provided in this convertible promissory note (this “Note”).

 

1.            Purchase Price. The Purchase Price of this Note shall be $75,000. Upon execution and delivery of this Note, the sum of $75,000 shall be remitted and delivered to, or on behalf of, the Company by the Payee.

 

2.            Payment Terms.

 

(a)           Interest. This Note shall not bear interest.

 

(b)            Payment of Principal. The principal of this Note shall be payable in $25,000 installments on each of July 1, 2021, August 1, 2021, and September 1, 2021, the Maturity Date.

 

(c)             Prepayment. The Company shall have the right to prepay this Note prior to the Maturity Date subject to 3-day prior notice to the Payee (“Pre-pay Notice”). During the Pre-pay Notice period, the Payee shall retain the ability to exercise the rights set forth in Sections 2(d) and 2(e) below. In the event that any scheduled payment date hereunder is a day on which banks in the State of New York are required or authorized to be closed, then the payment that would be due on such day shall instead be due and payable on the next day in which banks in the State of New York are open, with additional interest for such delay at the rate then in effect hereunder.

 

(d)            Right to Convert. The Payee shall have the right, at any time from the later of the date on the signature page attached hereto or the date that the Purchase Price is received by the Company (the “Issue Date”), so long as there are amounts outstanding under the Note, to convert all or any portion of the then outstanding and unpaid Principal Amount and any Default Interest into fully paid and non-assessable shares of Common Stock (the “Conversion Shares”), as set forth in Section 2(e); provided, however, that, in no event, shall the Payee be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Payee and his affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of Conversion Shares issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Payee and its affiliates of more than 4.99% of the then outstanding shares of Common Stock. For purposes of the proviso set forth in the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, however, that the limitations on conversion may be waived (up to 9.99%) by the Payee upon, at the election of the Payee, not less than 10-days’ prior notice to the Company, and the provisions of the conversion limitation shall continue to apply until such 10th day (or such later date, as determined by the Payee, as may be specified in such notice of waiver).

 

 

 

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The number of Conversion Shares to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the Conversion Price (as defined in Section 2(e), in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Company or Company’s transfer agent by the Payee; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Company or Company’s transfer agent before 11:59 p.m., New York, New York, time on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the Principal Amount of this Note to be converted in such conversion plus all other amounts due under this Note, if any.

 

(e)           Right to Qualification. Payee shall have the right, which may be exercised at Payee’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended, of the Company during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be determined by dividing the converted amount of this Note by the then-current offering price (the “Conversion Price”) of the applicable Regulation A Offering Statement. In conjunction with the rights granted to Payee under this Section 2(e), the Company shall, while any amount due under this Note remains outstanding, (1) identify Payee as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of its Common Stock to repay the remaining balance under the Note in full.

 

(g)           Authorized Shares. The Company represents that, upon issuance, the Conversion Shares will be duly and validly issued, fully paid and non- assessable. In addition, if the Company shall issue any securities or make any change to its capital structure which would change the number of Conversion Shares into which this Note shall be convertible at the then current Conversion Price, the Company shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of this Note. The Company acknowledges that it has irrevocably instructed its transfer agent to reserve the Conversion Shares and agrees that this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates or electronically issue shares of Common Stock to execute and issue the necessary certificates for the Conversion Shares in accordance with the terms and conditions of this Note.

 

3.           Default. It shall be an event of default (“Event of Default”), and the entire unpaid principal of this Note shall become immediately due and payable upon the occurrence of any of the following events:

 

(a)           any failure on the part of the Company to make any payment under this Note when due, and such failure continues for 90 days after the due date;

 

(b)           the Company’s commencement (or take any action for the purpose of commencing) of any proceeding under any bankruptcy, or for the reorganization of any party liable hereon, whether as maker, endorser, guarantor, surety or otherwise, or for the readjustment of any of the debts of any of the foregoing parties, under the Federal Bankruptcy Code, as amended, or any part thereof, or under any other laws, whether state or Federal, for the relief of debtors, now or hereafter existing, by any of the foregoing parties, or against any of the foregoing parties;

 

(c)            a proceeding shall be commenced against the Company under any bankruptcy, reorganization, arrangement, readjustment of debt, moratorium or similar law or statute and relief is ordered against such party, or the proceeding is controverted but is not dismissed within thirty (30) days after the commencement thereof;

 

(d)           the appointment of a receiver, trustee, or custodian for all or substantially all of the assets of the Company, which appointment remains in place for at least one hundred twenty (120) days, the dissolution or liquidation of the Company; or

 

(e)            the admission by the Company of its inability to pay its debts as they mature, or an assignment for the benefit of the creditors of the Company.

 

 

 

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4.            Waiver.

 

(a)            The Company and every endorser or guarantor, if any, of this Note regardless of time, order, or place of signing waive demand, presentment, protest, notice of protest, notice of dishonor with respect to this Note and notices of every kind and assent to any one or more extensions or postponements of the time of payment or any other indulgences, to any substitutions and to any additions or releases of any other parties or persons primarily or secondarily liable with respect to this Note.

 

(b)            The parties hereto agree that a waiver of rights under this Note shall not be deemed to be made by a party hereto unless such waiver shall be in writing, duly signed by the applicable party, and each such waiver, if any, shall apply only with respect to the specific instance involved and shall in no way impair the rights of the parties hereto in any other respect at any other time.

 

(c)            IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, THE COMPANY WAIVES, TO THE FULL EXTENT PERMITTED BY LAW, ALL RIGHT TO A TRIAL BY JURY.

 

5.            GOVERNING LAW. This Note shall be governed by the laws of the State of Colorado without regard to conflicts of law principles.

 

6.            Assignment of Note. The Company may not assign or transfer this Note or any of its obligations under this Note in any manner whatsoever (including, without limitation, by the consolidation or merger with or into another corporation) without the prior written consent of Payee. The Note may be assigned at any time by the Payee.

 

7.            Miscellaneous.

 

(a)            This Note may be altered only by prior written agreement signed by the party against whom enforcement of any waiver, change, modification, or discharge is sought. This Note may not be modified by an oral agreement, even if supported by new consideration.

 

(b)            Subject to the covenants, terms, and conditions contained in this Note apply to and bind the heirs, successors, executors, administrators and assigns of the parties.

 

(c)            This Note and the agreements and documents referred to herein and therein constitute a final written expression of all the terms of the agreement between the parties regarding the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, and representations between the parties with respect to this Note. If any provision or any word, term, clause, or other part of any provision of this Note shall be invalid for any reason, the same shall be ineffective, but the remainder of this Note shall not be affected and shall remain in full force and effect.

 

(d)            The term “Payee” shall include the initial party to whom payment is designated to be made and, in the event of an assignment of this Note, the successor assignee or assignees, and, as to each successive additional assignment, such successor assignee or assignees.

 

(e)            Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested (or by the most nearly comparable method if mailed from or to a location outside of the United States of America) or by FedEx, Express Mail, or similar internationally recognized overnight delivery or courier service, or delivered in person or by facsimile, email, or similar telecommunications equipment, against receipt therefore at the address of such party set forth in this Section 7(e) (or to such other address as the party shall have furnished in writing in accordance with the provisions of this Section 7(e)).

 

 

 

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  Payee: Elliott Polatoff
    909 Plainview Avenue
    Far Roackaway, New York 11691
    E-mail: elliott@devildonutz.com
     
  Company: Performance Drink Group, Inc.
    David Lovatt, Chief Executive Officer
    11427 West I-70 Frontage Road North
    Wheat Ridge, Colorado 80033
    E-mail: david.lovatt@supplementgrp.com

 

Such addresses may be changed by notice given as provided in this subsection. Notices shall be effective upon the date of receipt; provided, however, that a notice (other than a notice of a changed address) sent by certified or registered U.S. mail, with postage prepaid, shall be presumed received not later than three (3) business days following the date of sending.

 

(f)            Time is of the essence under this Note.

 

(g)           All agreements herein made are expressly limited so that in no event whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to the Payee for the use of the money advanced or to be advanced hereunder exceed the maximum rate of interest allowed to be charged under applicable law (the “Maximum Legal Rate”). If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby shall involve the payment of interest in excess of the Maximum Legal Rate, then the obligation to pay interest hereunder shall be reduced to the Maximum Legal Rate; and if from any circumstance whatsoever, the Payee shall ever receive interest, the amount of which would exceed the amount collectible at the Maximum Legal Rate, such amount as would be excessive interest shall be applied to any other indebtedness of the Company to the Payee. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between the Company and the Payee with respect to the indebtedness evidenced hereby.

 

(h)           The Company represents and warrants that the issuance of this Note has been duly authorized by all necessary corporate and shareholder actions and the execution, delivery and repayment of this Note does not and will not violate any agreement to which it is a party.

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Note as of the date first set forth above.

 

  COMPANY:
   
  PERFORMANCE DRINK GROUP, INC.
   
   
  By: /s/ David Lovatt
          David Lovatt
           Chief Executive Officer

 

 

Agreed to and Accepted By:

 

 

/s/ Elliott Polatoff

Elliott Polatoff

 

 

 

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EXHIBIT A

 

NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_______principal amount of the Note (defined below) into that number of shares of common stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Performance Drink Group, Inc., a Colorado corporation (the “Borrower”), according to the conditions of the First Amended Promissory Note of the Borrower dated March 24, 2021, as amended December 21, 2021 (the “Note”), as of the date written below. No fee will be charged to the undersigned for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

  The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent At Custodian (“DWAC Transfer”).

 

Name of DTC Prime Broker:________________________________
Account Number:_______________________________________

 

  The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

 

 

  Name:  
     
  Address  
     
     
  E-Mail  

 

 

Date of Conversion:_______

 

Applicable Conversion Price: $_______

 

Number of shares of common stock to be issued pursuant to conversion of the Note: _________________

 

Amount of Principal Balance due remaining under the Note after this conversion: _______

 

 

  By: ___________________
  Name: _________________
  Title: __________________

 

 

Date:

 

 

 

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Exhibit 4.1

 

SUBSCRIPTION AGREEMENT

 

Performance Drink Group, Inc.

 

NOTICE TO INVESTORS

 

The securities of Performance Drink Group, Inc., a Colorado corporation (the “Company”), to which this Subscription Agreement relates, represent an investment that involves a high degree of risk, suitable only for persons who can bear the economic risk for an indefinite period of time and who can afford to lose their entire investments. Investors should further understand that this investment is illiquid and is expected to continue to be illiquid for an indefinite period of time. No public market exists for the securities to which this Subscription Agreement relates.

 

The securities offered hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities or blue sky laws and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and state securities or blue sky laws. Although an Offering Statement has been filed with the Securities and Exchange Commission (the “SEC”), that Offering Statement does not include the same information that would be included in a Registration Statement under the Securities Act. The securities offered hereby have not been approved or disapproved by the SEC, any state securities commission or other regulatory authority, nor have any of the foregoing authorities passed upon the merits of the offering to which this Subscription Agreement relates or the adequacy or accuracy of this Subscription Agreement or any other materials or information made available to prospective investors in connection with the offering to which this Subscription Agreement. Any representation to the contrary is unlawful.

 

The securities offered hereby cannot be sold or otherwise transferred, except in compliance with the Securities Act. In addition, the securities offered hereby cannot be sold or otherwise transferred, except in compliance with applicable state securities or “blue sky” laws. Investors who are not “accredited investors” (as that term is defined in Section 501 of Regulation D promulgated under the Securities Act) are subject to limitations on the amount they may invest, as described in Section 4(g) of this Subscription Agreement.

 

To determine the availability of exemptions from the registration requirements of the Securities Act as such may relate to the offering to which this Subscription Agreement relates, the Company is relying on each investor’s representations and warranties included in this Subscription Agreement and the other information provided by each investor in connection herewith.

 

Prospective investors may not treat the contents of this Subscription Agreement, the Offering Circular or any of the other materials provided by the Company (collectively, the “Offering Materials”), or any prior or subsequent communications from the Company or any of its officers, employees or agents (including “Testing the Waters” materials), as investment, legal or tax advice. In making an investment decision, investors must rely on their own examinations of the Company and the terms of the offering to which this Subscription Agreement relates, including the merits and the risks involved. Each prospective investor should consult such investor’s own counsel, accountants and other professional advisors as to investment, legal, tax and other related matters concerning such investor’s proposed investment in the Company.

 

The Offering Materials may contain forward-looking statements and information relating to, among other things, the Company, its business plan, its operating strategy and its industries. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to, the Company’s management. When used in the Offering Materials, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements, which constitute forward looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

 

 

 

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SUBSCRIPTION AGREEMENT

 

This subscription agreement (the “Subscription Agreement” or the “Agreement”) is entered into by and between Performance Drink Group, Inc., a Colorado corporation (the “Company”), and the undersigned investor (“Investor”), as of the date set forth on the signature page hereto. Any term used but not defined herein shall have the meaning set forth in the Offering Circular (defined below).

 

RECITALS

 

WHEREAS, the Company is offering for sale a maximum of 1,000,000,000 shares of its common stock (the “Offered Shares”), pursuant to Tier 1 of Regulation A promulgated under the Securities Act (the “Offering”) at a fixed price of $____[0.005-.02] per share (the “Share Purchase Price”), on a best-efforts basis.

 

WHEREAS, Investor desires to acquire that number of Offered Shares (the “Subject Offered Shares”) as set forth on the signature page hereto at the Share Purchase Price.

 

WHEREAS, the Offering will terminate at the earlier of: (a) the date on which all of the securities offered in the Offering shall have been sold, (b) the date which is one year from the Offering having been qualified by the SEC or (c) the date on which the Offering is earlier terminated by the Company, in its sole discretion (in each case, the “Termination Date”).

 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows:

 

INVESTOR INFORMATION

Name of Investor

 

SSN or EIN

 

Street Address

 

City

 

State

 

Zip Code

 

Phone

 

E-mail

 

State/Nation of Residency

 

Name and Title of Authorized Representative, if investor is an entity or custodial account

 

Type of Entity or Custodial Account (IRA, Keogh, corporation, partnership, trust, limited liability company, etc.)

 

Jurisdiction of Organization

 

Date of Organization Account Number
CHECK ONE:   Individual Investor   Custodian Entity   Tenants-in-Common  
    Community Property   Corporation   Joint Tenants  
    LLC   Partnership   Trust  
                             

If the Subject Offered Shares are intended to be held as Community Property, as Tenants-In-Common or as Joint Tenancy, then each party (owner) must execute this Subscription Agreement.

 

 

 

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1.       Subscription.

 

(a)       Investor hereby irrevocably subscribes for, and agrees to purchase, the Subject Offered Shares set forth on the signature page hereto at the Share Purchase Price, upon the terms and conditions set forth herein. The aggregate purchase price for the Subject Offered Shares subscribed by Investor (the “Purchase Price”) is payable to the Company in the manner provided in Section 2(a).

 

(b)       Investor understands that the Offered Shares are being offered pursuant to the Offering Circular dated __________, 2022, and its exhibits (collectively, the “Offering Circular”), as filed with the SEC. By subscribing for the Subject Offered Shares, Investor acknowledges that Investor has received and reviewed a copy of the Offering Circular and any other information required by Investor to make an investment decision with respect to the Subject Offered Shares.

(c)       This Subscription Agreement may be accepted or rejected in whole or in part, for any reason or for no reason, at any time prior to the Termination Date, by the Company in its sole and absolute discretion. The Company will notify Investor whether this Subscription Agreement is accepted or rejected. If rejected, Investor’s payment shall be returned to Investor without interest and all of Investor’s obligations hereunder shall terminate, except for Section 5 hereof, which shall remain in force and effect.

 

(d)       The terms of this Subscription Agreement shall be binding upon Investor and Investors’s permitted transferees, heirs, successors and assigns (collectively, the “Transferees”); provided, however, that for any such transfer to be deemed effective, the proposed Transferee shall have executed and delivered to the Company, in advance, an instrument in form acceptable to the Company in its sole discretion, pursuant to which the proposed Transferee shall acknowledge and agree to be bound by the representations and warranties of Investor and the terms of this Subscription Agreement. No transfer of this Agreement may be made without the consent of the Company, which consent may be withheld by the Company in its sole and absolute discretion.

 

2.      Payment and Purchase Procedure. The Purchase Price shall be paid simultaneously with Investor’s delivery of this Subscription Agreement. Investor shall deliver payment of the Purchase Price of the Subject Offered Shares in the manner set forth in Section 8 hereof. Investor acknowledges that, in order to subscribe for Offered Shares, Investor must comply fully with the purchase procedure requirements set forth in Section 8 hereof.

 

3.       Representations and Warranties of the Company. The Company represents and warrants to Investor that each of the following is true and complete in all material respects as of the date of this Subscription Agreement:

 

(a)       the Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Colorado. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, the Subject Offered Shares and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business;

 

(b)       The issuance, sale and delivery of the Subject Offered Shares in accordance with this Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Subject Offered Shares, when issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable; and

 

(c)       the acceptance by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby are within the Company’s powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon the Company’s acceptance of this Subscription Agreement, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (1) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (2) as limited by general principles of equity that restrict the availability of equitable remedies.

 

 

 

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4.       Representations and Warranties of Investor. Investor represents and warrants to the Company that each of the following is true and complete in all material respects as of the date of this Subscription Agreement:

 

(a)       Requisite Power and Authority. Investor has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement and to carry out the provisions hereof. Upon due delivery hereof, this Subscription Agreement will be a valid and binding obligation of Investor, enforceable in accordance with its terms, except (1) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (2) as limited by general principles of equity that restrict the availability of equitable remedies.

 

(b)       Company Offering Circular; Company Information. Investor acknowledges the public availability of the Offering Circular which can be viewed on the SEC Edgar Database, under CIK number 0001902930, and that Investor has reviewed the Offering Circular. Investor acknowledges that the Offering Circular makes clear the terms and conditions of the Offering and that the risks associated therewith are described. Investor has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities. Investor has also had the opportunity to ask questions of, and receive answers from, the Company and its management regarding the terms and conditions of the Offering. Investor acknowledges that, except as set forth herein, no representations or warranties have been made to Investor, or to any advisor or representative of Investor, by the Company with respect to the business or prospects of the Company or its financial condition.

 

(c)       Investment Experience; Investor Suitability. Investor has sufficient experience in financial and business matters so as to be capable of evaluating the merits and risks of an investment in the Offered Shares, and to make an informed decision relating thereto. Alternatively, Investor has utilized the services of a purchaser representative and, together, they have sufficient experience in financial and business matters so as to be capable of evaluating the merits and risks of an investment in the Offered Shares, and to make an informed decision relating thereto. Investor has evaluated the risks of an investment in the Offered Shares, including those described in the section of the Offering Circular entitled “Risk Factors”, and has determined that such an investment is suitable for Investor. Investor has adequate financial resources for an investment of this character. Investor is capable of bearing a complete loss of Investor’s investment in the Offered Shares.

 

(d)       No Registration. Investor understands that the Offered Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A promulgated under the Securities Act, and that reliance on such exemption is predicated, in part, on the truth and accuracy of Investor’s representations and warranties, and those of the other purchasers of the Offered Shares in the Offering.

 

Investor further understands that the Offered Shares are not being registered under the securities laws of any state, on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state.

 

Investor covenants not to sell, transfer or otherwise dispose of any Offered Shares, unless such Offered Shares have been registered under the Securities Act and under applicable state securities laws, or exemptions from such registration requirements are available.

 

(e)       Illiquidity and Continued Economic Risk. Investor acknowledges and agrees that there is a limited public market for the Offered Shares and that there is no guarantee that a market for their resale will continue to exist. Investor must, therefore, bear the economic risk of the investment in the Subject Offered Shares indefinitely and Investor acknowledges that Investor is able to bear the economic risk of losing Investor’s entire investment in the Subject Offered Shares.

 

 

 

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(f)       Investor Status. Investor represents that either:

 

(1)       Investor has a a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings; or

 

(2)       Investor has a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

Investor represents that, to the extent Investor has any questions with respect to Investor’s satisfying the standards set forth in subparagraphs (1) and (2), Investor has sought professional advice.

 

(g)       Investor Information. Within five (5) days after receipt of a request from the Company, Investor hereby agrees to provide such information with respect to Investor’s status as a Company shareholder and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is, or may become, subject, including, without limitation, the need to determine the accredited investor status of the Company’s shareholders. Investor further agrees that, in the event Investor transfers any Offered Shares, Investor will require the transferee of any such Offered Shares to agree to provide such information to the Company as a condition of such transfer.

 

(h)       Valuation; Arbitrary Determination of Share Purchase Price by the Company. Investor acknowledges that the Share Purchase Price of the Offered Shares in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to value. Investor further acknowledges that future offerings of securities of the Company may be made at lower valuations, with the result that Investor’s investment will bear a lower valuation.

 

(i)       Domicile. Investor maintains Investor’s domicile (and is not a transient or temporary resident) at the address provided herein.

 

(j)       Foreign Investors. If Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Investor hereby represents that Investor is in full compliance with the laws of Investor’s jurisdiction in connection with any invitation to subscribe for the Offered Shares or any use of this Subscription Agreement, including, without limitation, (1) the legal requirements within Investor’s jurisdiction for the purchase of the Subject Offered Shares, (2) any foreign exchange restrictions applicable to such purchase, (3) any governmental or other consents that may need to be obtained, and (4) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Subject Offered Shares. Investor’s subscription and payment for and continued beneficial ownership of the Subject Offered Shares will not violate any applicable securities or other laws of Investor’s jurisdiction.

 

(k)       Fiduciary Capacity. If Investor is purchasing the Subject Offered Shares in a fiduciary capacity for another person or entity, including, without limitation, a corporation, partnership, trust or any other juridical entity, Investor has been duly authorized and empowered to execute this Subscription Agreement and all other related documents. Upon request of the Company, Investor will provide true, complete and current copies of all relevant documents creating Investor, authorizing Investor’s investment in the Company and/or evidencing the satisfaction of the foregoing.

 

5.       Indemnity. The representations, warranties and covenants made by Investor herein shall survive the consummation of this Subscription Agreement. Investor agrees to indemnify and hold harmless the Company and its officers, directors and agents, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys’ fees, including attorneys’ fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by Investor to comply with any covenant or agreement made by Investor herein or in any other document furnished by Investor to any of the foregoing in connection with the transaction contemplated hereby.

 

 

 

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6.       Governing Law; Jurisdiction; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of the Offering Circular, including, without limitation, this Subscription Agreement, shall be governed by and construed and enforced in accordance with the internal laws of the State of Colorado, without regard to the principles of conflicts of law thereof. The Company and Investor agree that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Subscription Agreement and any documents included within the Offering Circular (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Denver, Colorado. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Denver, Colorado, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the documents included within the Offering Circular), and hereby irrevocably waives, and agrees not to assert in any action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Subscription Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party hereto shall commence an action or proceeding to enforce any provisions of the documents included within the Offering Circular, then the prevailing party in such action or proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. In any action, suit or proceeding in any jurisdiction brought by any party against any other party, each of the parties each knowingly and intentionally, to the greatest extent permitted by applicable law, hereby absolutely, unconditionally, irrevocably and expressly waives forever trial by jury.

 

7.       Notices. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) e-mailed on the date of such delivery to the address of the respective parties as follows, if to the Company, to Performance Drink Group, Inc., 11427 West I-70 Frontage Road North, Wheat Ridge, Colorado 80033, Attention: David Lovatt, CEO. If to Investor, at Investor’s address supplied in connection herewith, or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by email shall be confirmed by letter given in accordance with (a) or (b) above.

 

8.       Purchase Procedure. Investor acknowledges that, in order to subscribe for the Subject Offered Shares, Investor must, and Investor does hereby, deliver (in a manner described below) to the Company:

 

(a)       a single executed counterpart of the Subscription Agreement, which shall be delivered to the Company either by (1) physical delivery to: Performance Drink Group, Inc., Attention: David Lovatt, CEO, 11427 West I-70 Frontage Road North, Wheat Ridge, Colorado 80033; (2) e-mail to: david.lovatt@supplementgrp.com; and

 

(b)       payment of the Purchase Price, which shall be delivered in the manner set forth in Annex I attached hereto and made a part hereof.

 

 

 

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9.       Miscellaneous. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require. Other than as set forth herein, this Subscription Agreement is not transferable or assignable by Investor. The representations, warranties and agreements contained herein shall be deemed to be made by, and be binding upon, Investor and Investor’s heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns. None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Investor. In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never in this Subscription Agreement. This Subscription Agreement supersedes all prior discussions and agreements between the Company and Investor, if any, with respect to the subject matter hereof and contains the sole and entire agreement between the Company and Investor with respect to the subject matter hereof. The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person. The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof. In the event that either party hereto shall commence any suit, action or other proceeding to interpret this Subscription Agreement, or determine to enforce any right or obligation created hereby, then such party, if it prevails in such action, shall recover its reasonable costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorneys’ fees and expenses and costs of appeal, if any. All notices and communications to be given or otherwise made to Investor shall be deemed to be sufficient if sent by e-mail to such address provided by Investor herein. Unless otherwise specified in this Subscription Agreement, Investor shall send all notices or other communications required to be given hereunder to the Company via e-mail at david.lovatt@supplementgrp.com. Any such notice or communication shall be deemed to have been delivered and received on the first business day following that on which the e-mail has been sent (assuming that there is no error in delivery). As used in this Section 9, the term “business day” shall mean any day other than a day on which banking institutions in the State of Colorado are legally closed for business. This Subscription Agreement may be executed in one or more counterparts. No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

10.     Consent to Electronic Delivery of Notices, Disclosures and Forms. Investor understands that, to the fullest extent permitted by law, any notices, disclosures, forms, privacy statements, reports or other communications (collectively, “Communications”) regarding the Company, Investor’s investment in the Company and the Subject Offered Shares (including annual and other updates and tax documents) may be delivered by electronic means, such as by e-mail. Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, Investor acknowledges that e-mail messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. Investor also acknowledges that an e-mail from the Company may be accessed by recipients other than Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. Neither the Company, nor any of its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act (collectively, the “Company Parties”), gives any warranties in relation to these matters. Investor further understands and agrees to each of the following: (a) other than with respect to tax documents in the case of an election to receive paper versions, none of the Company Parties will be under any obligation to provide Investor with paper versions of any Communications; (b) electronic Communications may be provided to Investor via e-mail or a website of a Company Party upon written notice of such website’s internet address to such Investor. In order to view and retain the Communications, Investor’s computer hardware and software must, at a minimum, be capable of accessing the Internet, with connectivity to an internet service provider or any other capable communications medium, and with software capable of viewing and printing a portable document format (“PDF”) file created by Adobe Acrobat. Further, Investor must have a personal e-mail address capable of sending and receiving e-mail messages to and from the Company Parties. To print the documents, Investor will need access to a printer compatible with his or her hardware and the required software; (c) if these software or hardware requirements change in the future, a Company Party will notify the Investor through written notification. To facilitate these services, Investor must provide the Company with his or her current e-mail address and update that information as necessary. Unless otherwise required by law, Investor will be deemed to have received any electronic Communications that are sent to the most current e-mail address that the Investor has provided to the Company in writing; (d) none of the Company Parties will assume liability for non-receipt of notification of the availability of electronic Communications in the event Investor’s e-mail address on file is invalid; Investor’s e-mail or Internet service provider filters the notification as “spam” or “junk mail”; there is a malfunction in Investor’s computer, browser, internet service or software; or for other reasons beyond the control of the Company Parties; and (e) solely with respect to the provision of tax documents by a Company Party, Investor agrees to each of the following: (1) if Investor does not consent to receive tax documents electronically, a paper copy will be provided, and (2) Investor’s consent to receive tax documents electronically continues for every tax year of the Company until Investor withdraws its consent by notifying the Company in writing.

 

 

 

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Investor certifies that Investor has read this entire Subscription Agreement and that every statement made by Investor herein is true and complete.

 

The Company may not be offering the Offered Shares in every state. The Offering Materials do not constitute an offer or solicitation in any state or jurisdiction in which the Offered Shares are not being offered. The information presented in the Offering Materials was prepared by the Company solely for the use by prospective investors in connection with the Offering. Nothing contained in the Offering Materials is or should be relied upon as a promise or representation as to the future performance of the Company.

 

The Company reserves the right, in its sole discretion and for any reason whatsoever, to modify, amend and/or withdraw all or a portion of the Offering and/or accept or reject, in whole or in part, for any reason or for no reason, any prospective investment in the Offered Shares. Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the purchase of the Offered Shares shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the date set forth below.

 

Dated: _______________________.

 

  INDIVIDUAL INVESTOR  
 

 

 

     
  (Signature)   (Subscription Amount)  
         
  (Printed Name)   (Number of Offered Shares Subscribed)  
  CORPORATION/LLC/TRUST INVESTOR  
 

 

 

 

 

 

  (Name of Corporation/LLC/Trust)   (Subscription Amount)
 
  (Signature)      
      (Number of Offered Shares Subscribed)  
  (Printed Name)      
         
  (Title)      
  PARTNERSHIP INVESTOR  
 

 

 

 

 

$

 
  (Name of Partnership)   (Subscription Amount)  
 
  (Signature)      
      (Number of Offered Shares Subscribed)  
  (Printed Name)      
         
  (Title)      
  COMPANY ACCEPTANCE  
                     

 

The foregoing subscription for ________ Offered Shares, a Subscription Amount of $_________, is hereby accepted on behalf of Performance Drink Group, Inc., a Colorado corporation, this _____ day of ________, 202__.

 

PERFORMANCE DRINK GROUP, INC.

 

By: _______________________

Name: _____________________

Title: ______________________

 

 

 

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Exhibit 12.1

 

NEWLAN LAW FIRM, PLLC

2201 Long Prairie Road – Suite 107-762

Flower Mound, Texas 75022

940-367-6154

 

 

January 6, 2021

 

 

Performance Drink Group, Inc.

11427 West I-70 Frontage Road North

Wheat Ridge, Colorado 80033

 

Re:       Offering Statement on Form 1-A

 

Gentlemen:

 

We have been requested by Performance Drink Group, Inc. a Colorado corporation (the “Company”), to furnish you with our opinion as to the matters hereinafter set forth in connection with its offering statement on Form 1-A (the “Offering Statement”) relating to the qualification of shares of the Company’s common stock under Regulation A promulgated under the Securities Act of 1933, as amended. Specifically, this opinion relates to 1,000,000,000 shares of the Company’s $.00001 par value common stock (the “Company Shares”).

 

In connection with this opinion, we have examined the Offering Statement, the Company’s Articles of Incorporation and Bylaws (each as amended to date), copies of the records of corporate proceedings of the Company and such other documents as we have deemed necessary to enable us to render the opinion hereinafter expressed.

 

For purposes of this opinion, we have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of all documents submitted to us as copies. We have also assumed the legal capacity of all natural persons, the genuineness of the signatures of persons signing all documents in connection with which this opinion is rendered, the authority of such persons signing on behalf of the parties thereto other than the Company and the due authorization, execution and delivery of all documents by the parties thereto other than the Company. We have not independently established or verified any facts relevant to the opinions expressed herein, but have relied upon statements and representations of officers and other representatives of the Company and others.

 

Based upon and subject to the foregoing qualifications, assumptions and limitations and the further limitations set forth below, we are of the opinion that the 1,000,000,000 Company Shares being offered by the Company will, when issued in accordance with the terms set forth in the Offering Statement, be legally issued, fully paid and non-assessable shares of common stock of the Company.

 

Our opinion expressed above is subject to the qualification that we express no opinion as to the applicability of, compliance with, or effect of any laws except the Nevada Revised Statutes (including the statutory provisions and reported judicial decisions interpreting the foregoing).

 

We hereby consent to the use of this opinion as an exhibit to the Offering Statement and to the reference to our name under the caption “Legal Matters” in the Offering Statement and in the offering circular included in the Offering Statement. We confirm that, as of the date hereof, we own no shares of the Company’s common stock, nor any other securities of the Company.

 

Sincerely,

 

/s/ Newlan Law Firm, PLLC

 

NEWLAN LAW FIRM, PLLC