On April 21, 2017, the Company entered into a definitive Asset Acquisition Agreement with Sylios Corp, whereby the Company acquired Sylios’ wholly owned subsidiary, Bud Bank, LLC. Under the Agreement, the Company is obligated to pay Sylios a royalty of 10% of net sales proceeds generated by Bud Bank through its operations up to a total of $50,000 and thereafter for perpetuity pay a royalty of 3% of net sales proceeds generated by Bud Bank through its operations.
On June 19, 2017, the Company’s former parent Company, Sylios Corp, filed a Notice of Conversion with the State of Florida to convert Bud Bank from a limited liability company to a Florida for-profit corporation. Simultaneous with the filing of the Notice, the Company filed Articles of Incorporation for Bud Bank designating two classes of securities. The first class is common stock of which the Company is authorized to issue 250,000,000 shares and the second is Preferred stock of which the Company is authorized to issue 5,000,000. The transaction closed on June 20, 2017 and Bud Bank became a wholly owned subsidiary of the Company.
The Company is reviewing several business strategies for Bud Bank including, but not limited to: a cannabis seed bank, brick and mortar dispensary opportunities and a portal for facilitating financial transactions for the cannabis industry.