0001493152-22-011315.txt : 20220427 0001493152-22-011315.hdr.sgml : 20220427 20220427142436 ACCESSION NUMBER: 0001493152-22-011315 CONFORMED SUBMISSION TYPE: 1-A PUBLIC DOCUMENT COUNT: 10 FILED AS OF DATE: 20220427 DATE AS OF CHANGE: 20220427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VetaNova Inc. CENTRAL INDEX KEY: 0001280396 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 851736272 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 1-A SEC ACT: 1933 Act SEC FILE NUMBER: 024-11868 FILM NUMBER: 22858807 BUSINESS ADDRESS: STREET 1: 335 A JOSEPHINE STREET CITY: DENVER STATE: CO ZIP: 80206 BUSINESS PHONE: (303) 248-6883 MAIL ADDRESS: STREET 1: 335 A JOSEPHINE STREET CITY: DENVER STATE: CO ZIP: 80206 FORMER COMPANY: FORMER CONFORMED NAME: YUKON GOLD CORP INC DATE OF NAME CHANGE: 20040217 1-A 1 primary_doc.xml 1-A LIVE 0001280396 XXXXXXXX true VetaNova, Inc. NV 2003 0001280396 0192 85-1736272 1 0 335 A Josephine St. Denver CO 80206 303-248-6883 William T. Hart, Esq., Other 108951.00 0.00 0.00 3500000.00 3608951.00 0.00 0.00 2410325.00 1198626.00 3608951.00 0.00 0.00 0.00 -19906722.00 -0.08 -0.08 BF Borgers CPA PC Common Stock 426100053 92850H100 OTC Markets Group None. 0 000000000 N/A Convertible Notes 414687 000000000 N/A true true Tier2 Audited Equity (common or preferred stock) Option, warrant or other right to acquire another security Y N N Y N N 300000000 426100053 0.0334 10000000.00 0.00 0.00 0.00 10000000.00 Dalmore Group, LLC and selected dealers 700000.00 BF Borgers CPA PC 10000.00 Hart & Hart, LLC 35000.00 Dalmore Group, LLC 5000.00 9250000.00 true AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC VetaNova, Inc. Common Stock 233461 0 0 VetaNova, Inc. Convertible Notes 414687 0 0 Exempt from registration pursuant to Section 4(a)2 of the Securities Act of 1933. PART II AND III 2 partiiandiii.htm

 

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “SEC” OR THE “COMMISSION”). 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 COMMISSION 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 SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF THE COMPANY’S 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.

 

PRELIMINARY OFFERING CIRCULAR DATED ____, 2022

 

VETANOVA, INC.

 

335 A Josephine St.

Denver, CO 80206

 

Units

$0.03⅓ per Unit

 

OFFERING: UP TO 300,000,000 UNITS. EACH UNIT IS COMPRISED OF ONE SHARE OF COMMON STOCK, ONE SERIES III WARRANT AND ONE SERIES IV WARRANT. EACH SERIES III WARRANT ALLOWS THE HOLDER TO PURCHASE ONE SHARE OF THE COMPANY’S COMMON STOCK AT A PRICE OF $0.05 PER SHARE. EACH SERIES IV WARRANT ALLOWS THE HOLDER TO PURCHASE ONE SHARE OF THE COMPANY’S COMMON STOCK AT A PRICE OF $0.06⅔ PER SHARE. THE SERIES III AND SERIES IV WARRANTS EXPIRE ON DECEMBER 31, 2023. THE SHARES ISSUABLE UPON THE EXERCISE OF THE SERIES III AND SERIES IV WARRANTS ARE SOMETIMES REFERRED TO IN THIS OFFERING CIRCULAR AS “WARRANT SHARES”.

 

PRICE: $0.03⅓ PER UNIT

 

Title of Each Class of

Securities to be Qualified

  Price to Public   Commissions (1)   Proceeds to the Company (2) 
Units (300,000,000), each consisting of:  $10,000,000   $700,000   $9,300,000 
- One Series III Warrant               
- One Series IV Warrant               
                
Common Stock (300,000,000 shares) issuable upon exercise of Series III Warrants  $15,000,000   $1,050,000   $13,950,000 
Common Stock (300,000,000 shares) issuable upon exercise of Series IV Warrants   20,000,000   $1,400,000   $18,600,000 
Total               

 

(1) The Company has engaged Dalmore Group, LLC, member FINRA/SIPC (“Dalmore”), to act as the broker-dealer of record in connection with this Offering, but not for underwriting or placement agent services. This includes the 2% commission, but it does not include the one-time set-up fee and consulting fee payable by the Company to Dalmore. To the extent that the Company’s officers and directors make any communications in connection with the Offering they intend to conduct such efforts in accordance with an exemption from registration contained in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, therefore, the Company’s officers and directors are not required to register as a broker-dealer. See “Plan of Distribution”.

 

The Company will also pay selected dealers a commission of 5% of the amount sold by the selected dealers in this Offering. For purposes of the amount of commissions payable in connection with this Offering, the Company assumed selected dealers would sell all of the Units offered. However, the Company estimates that selected dealers will actually sell only 50% of the Units offered.

 

(2)Does not include expenses of the offering which are estimated to be $50,000.

 

The Common Shares and Warrants comprising the Units and the underlying Warrant Shares are being offered pursuant to Regulation A of the Securities Act of 1933 for Tier 2 offerings. The Common Shares and Warrants comprising of Units and the underlying Warrant Shares are only issued to purchasers who satisfy the requirements set forth in Regulation A.

 

The minimum investment required is $1,000. However, the Company in its sole discretion may accept less than the minimum investment.

 

The Offering will terminate on December 31, 2023.

 

The Offering is being conducted on a “best efforts” basis without a minimum offering amount, which means that there is no guarantee that any minimum amount will be sold in this Offering.

 

INVESTING IN THE UNITS, THE COMMON SHARES AND THE WARRANTS COMPRISING THE UNITS, AND THE WARRANT SHARES IS SPECULATIVE AND INVOLVES SUBSTANTIAL RISKS. YOU SHOULD PURCHASE THESE SECURITIES ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE “RISK FACTORS” BEGINNING ON PAGE 5 TO LEARN THE MORE SIGNIFICANT RISKS YOU SHOULD CONSIDER IN CONNECTION WITH AN INVESTMENT IN THE COMPANY’S SECURITIES.

 

THE SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF 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 COMMISSION; HOWEVER THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

GENERALLY NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A OF THE SEC. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.

 

Sales of these securities will commence within approximately two (2) days after qualification of this offering.

 

The Company is following the Form S-1 (Part I) format for this Offering Circular.

 

 

 

 


TABLE OF CONTENTS

 

SUMMARY 3
     
RISK FACTORS 5
     
DILUTION 8
     
USE OF PROCEEDS 7
     
MARKET FOR COMMON STOCK 8
     
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9
     
BUSINESS 11
     
MANAGEMENT 13
     
PRINCIPAL SHAREHOLDERS 16
     
PLAN OF DISTRIBUTION 17
     
DESCRIPTION OF SECURITIES 19
     
INDEMNIFICATION 20
     
WHERE YOU CAN FIND MORE INFORMATION 20
     
FINANCIAL STATEMENTS 21

 

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. 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. 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.

 

2

 

 

SUMMARY

 

Overview

 

The Company is a development stage company that plans to build and operate solar powered, state of the art, greenhouse facilities which will grow fruits and vegetables for distribution to local markets across the United States. The Company has acquired approximately 157 acres in southern Colorado (“Avondale Complex”), which will be its first development project. As of the date of this Offering Circular, the Company was not operating any solar powered greenhouses.

 

The Company’s principal executive offices are located at 335 A Josephine St. Denver, Colorado 80206 and its telephone number is (303) 248-6883.

 

The Offering

 

Securities offered:  

A maximum of 300,000,000 Units at an offering price of $0.03⅓ per Unit.

     
    Each Unit is comprised of one share of common stock, one Series III Warrant and one Series IV Warrant. Each Series III Warrant allows the Holder to purchase one share of the Company’s common stock at a price of $0.05 per share. Each Series IV Warrant allows the Holder to purchase one share of the Company’s common stock at a price of $0.06⅔ per share. The Series III and Series IV Warrants expire on December 31, 2023.
     
Securities outstanding before the Offering   426,100,053 shares of common stock (1)
     
Securities outstanding after the Offering:     726,103,053 Common Shares and 726,103,053 Warrants if all Units offered are sold, or 1,326,109,106 Common Shares upon the exercise of the Warrants if all Units offered are sold and all Warrants are exercised.

 

(1) Does not reflect 60,000,000 shares of common stock issuable upon conversion of outstanding convertible notes.

 

Implications of Being an Emerging Growth Company

 

As an issuer with less than $1 billion in total annual gross revenues during our last fiscal year, we qualify as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

 

  will not be required to obtain an auditor attestation on our internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;
     
  will not be required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as “compensation discussion and analysis”);
     
  will not be required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the “say-on-pay,” “say-on-frequency” and “say-on-golden-parachute” votes);
     
  will be exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;
     
  may present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A; and
     
  will be eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

 

3

 

 

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or such earlier time that we no longer meet the definition of an emerging growth company. Note that this offering, while a public offering, is not a sale of common equity pursuant to a registration statement since the offering is conducted pursuant to an exemption from the registration requirements. In this regard, the JOBS Act provides that we would cease to be an “emerging growth company” if we have more than $1.07 billion in annual revenues, have more than $700 million in market value of our Common Stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

 

In addition, Section 107 of the JOBS Act provides that an emerging growth company may utilize the extended transition period provided in Section 7(a)(2)(b) of the Securities Act of 1933, as amended (the “Securities Act”) for complying with new or revised accounting standards. We are choosing to “opt out” of such extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

 

Forward-Looking Statements

 

Some of the statements in this Offering Circular constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms or other comparable terminology.

 

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Offering Circular, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:

 

The speculative nature of our business;

 

Concerns about our ability to continue as a “going concern;”

 

Our ability to effectively execute our business plan;

 

Our ability to manage our expansion, growth and operating expenses;

 

Our ability to finance our businesses;

 

Our ability to promote our businesses;

 

Our ability to compete and succeed in highly competitive and evolving businesses;

 

Our ability to respond and adapt to changes in technology and customer behavior; and

 

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as may be required by law, to amend this Offering Circular or otherwise make public statements updating our forward-looking statements.

 

4

 

 

RISK FACTORS

 

The price of our common stock may be materially affected by a number of risk factors, including those summarized below:

 

The Company has no operating history with respect to its new business and may never be profitable.

 

Since the Company only recently began its new business, it is difficult for potential investors to evaluate the Company’s future prospects. The Company will need to raise enough capital to be able to fund its operations. There can be no assurance that the Company will be profitable or that the Company’s securities will have any value.

 

Any forecasts the Company makes concerning its operations may prove to be inaccurate. The Company’s prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in the early stage of development.

 

Our auditors have expressed doubt as to our ability to continue in business.

 

The accompanying financial statements have been prepared assuming we will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. We had a net loss of $(19,906,722) for the year ended December 31, 2021. These matters, among others, raise substantial doubt about our ability to continue as a going concern.

 

The Company needs capital to implement its business plan.

 

The Company needs additional capital in order to operate. There is no minimum amount which is required to be raised in this offering. If only a small number of Units are sold in this offering, the amount received from the sale of these Units will provide little benefit to the Company. As a result, the Company may need to raise the capital it needs in future offerings of its securities, proceeds from the exercise of the Company’s warrants, the sale and lease back of the Company’s greenhouse/ warehouse facilities or borrowings from private lenders. The Company does not know what the terms of any future capital raising may be, but any future sale of the Company’s equity securities will dilute the ownership of existing stockholders and could be at prices substantially below the market price of our common. The failure of the Company to obtain the capital which it requires may result in the slower implementation of the Company’s business plan.

 

Our business and results of operations are dependent on the availability, skill and performance of subcontractors.

 

We will use subcontractors to construct our greenhouse/ warehouse facilities. Accordingly, the timing and quality of our installations will depend on the availability and skill of our subcontractors. While we anticipate being able to obtain sufficient materials and reliable subcontractors, we do not have any contractual commitments with any subcontractors, and we can provide no assurance that skilled subcontractors will be available at reasonable rates. The inability to contract with skilled subcontractors at reasonable rates on a timely basis could have a material adverse effect on our business.

 

We may discover that our subcontractors have engaged in improper construction practices or have installed defective materials. When we discover these issues, we will use other subcontractors to make repairs as required by law. The costs of repairs in these instances may be significant and we may be unable to recover the costs of repairs from subcontractors, suppliers and insurers, which could have a material impact on our business. We may also suffer damage to our reputation from the actions of subcontractors, which are beyond our control.

 

Potential competitors could duplicate our business model.

 

There is no aspect of our business which is protected by patents, copyrights, trademarks, or trade names at this time. As a result, potential competitors could duplicate our business model with little effort.

 

5

 

 

The Company may not be able to effectively manage its growth, which would impair our results of operations.

 

The Company intends to expand the scope of its operating activities significantly. If the Company is successful in executing its business plan, it will experience business growth that could place a significant strain on operations, finances, management, and other resources.

 

The ability to effectively manage growth may require the Company to substantially expand the capabilities of administrative and operational resources and to attract, train, manage, and retain qualified management and other personnel. There can be no assurance that the Company will be successful in recruiting and retaining new employees or retaining existing employees.

 

The Company cannot provide assurances that management will be able to manage this growth effectively. The failure to successfully manage growth could materially adversely affect its business, financial condition or results of operations.

 

The Company is dependent on its management and the loss of any of its officers could harm the Company’s business.

 

The Company’s future success depends largely upon the experience, skill, and contacts of the Company’s officers. The loss of the services to these officers may have a material adverse effect upon the Company’s business.

 

Our sole officer and director controls the voting of approximately 41% of our common stock.

 

John R. McKowen, our only officer and director, owns 88,107,690 shares of our common stock and controls the voting of 147,268,425 shares of common stock owned by entities controlled by Mr. McKowen. As a result, Mr. McKowen is able to exert a significant level of control over all matters requiring stockholder approval, including the election of directors, any amendment to our articles of incorporation and approval of mergers and other transactions requiring stockholder approval.

 

We may face business disruption and related risks from the recent pandemic of the novel coronavirus 2019 (COVID-19) which could have a material adverse effect on our business.

 

Our business could be disrupted and materially adversely affected by the recent outbreak of COVID-19. As a result of measures imposed by the governments in affected regions, businesses and schools have been suspended due to quarantines intended to contain this outbreak. The spread of SARS CoV-2 from China to other countries has resulted in the Director General of the World Health Organization declaring COVID-19 a pandemic on March 11, 2020. International stock markets reflect the uncertainty associated with the slow-down in the economy. The reduced levels of international travel experienced since the beginning of January and the significant declines in the Dow Industrial Average were largely attributed to the effects of COVID-19. We are still assessing the impact COVID-19 may have on our business, but there can be no assurance that this analysis will enable us to avoid part or all of any impact from the spread of COVID-019 or its consequences, including downturns in business sentiment generally or in our sector in particular. The extent to which the COVID-19 pandemic and global efforts to contain its spread will impact our operations will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the pandemic and the actions taken to contain or treat the COVID-19 pandemic.

 

As of the date of this Offering Circular there was only a limited public market for our common stock.

 

As a result, you may be unable to sell your shares of our common stock.

 

6

 

 

Disclosure requirements pertaining to penny stocks may reduce the level of trading activity for our common stock.

 

Trades of the Company’s common stock are subject to Rule 15g-9 of the Securities and Exchange Commission, 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, brokers/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 Securities and Exchange Commission 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 prepared by the Commission 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.

 

You may have difficulty depositing your shares with a broker or selling shares of our common stock which you acquire in this offering.

 

Many securities brokers will not accept securities for deposits and will not sell securities which:

 

  are considered penny stocks or
  trade in the over-the-counter market

 

Further, for a securities broker which will, under certain circumstances, sell securities which fall under any or all of the categories listed above, the customer, before the securities broker will accept the shares for deposit, must often complete a questionnaire detailing how the customer acquired the shares, provide the securities broker with an opinion of an attorney concerning the ability of the shares to be sold in the public market, and pay a “legal review” fee which in some cases can exceed $1,000.

 

For these reasons, investors in this offering may have difficulty selling shares of our common stock.

 

We are an Emerging Growth Company, subject to less stringent reporting and regulatory requirements of other publicly held companies and this status may have an adverse effect on our ability to attract interest in our common stock.

 

We are an Emerging Growth Company as defined in the JOBS Act. As long as we remain an Emerging Growth Company, we may take advantage of certain exemptions from various reporting and regulatory requirements that are applicable to other public companies that are not emerging growth companies. We cannot predict if investors will find our common stock less attractive if we choose to rely on these exemptions. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and our stock price may be more volatile.

 

USE OF PROCEEDS

 

We will use these net proceeds from this Offering Circular for the following:

 

Units Sold  100%  75%  50%  25%
                 
Gross Offering Proceeds  $10,000,000   $7,500,000   $5,000,000   $2,500,000 
Commissions   700,000    525,000    350,000    175,000 

Offering Expenses

   

50,000

    

50,000

    

50,000

    

50,000

 
Net Offering Proceeds   9,250,000    6,925,000    4,600,000    2,275,000 
Use of Net Proceeds                    
●   Repay Bridge Notes   516,356    516,356    516,356    516,356 
●   Begin expanding/retrofitting existing greenhouse and warehouse   5,000,000    3,750,000    2,500,000    583,644 
●   Working Capital  $3,783,644    2,708,644    1,633,644    558,644 

 

7

 

 

The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. Any line item amounts not expended completely shall be held in reserve as working capital and subject to reallocation to other line-item expenditures as required for ongoing operations.

 

The expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

 

In the event we do not sell all of the Units being offered, we may seek additional financing from other sources in order to support the intended use of proceeds indicated above. If we secure additional equity funding, investors in this offering would be diluted. In all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us.

 

DILUTION

 

If you purchase Units in this offering, your ownership interest in our common stock will be diluted immediately, to the extent of the difference between the public offering price and the net tangible book value per share of our common stock after this offering.

 

Our net tangible book value per share as of December 31, 2021, was less than $0.01. Net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of our common stock outstanding as of December 31.2021.

 

The following table illustrates the per share dilution to new investors, assuming the sale of, respectively, of 100%, 75%, 50% and 25% of the Units (after deducting commissions payable and estimated offering expenses of $50,000). For purposes of the dilution calculations below, the public offering price of the Units has been allocated the shares of common stock comprising the Units:

 

Percentage of Units sold   100%   75%   50%   25%
Public offering price  $ 0.3⅓    $0.3⅓    $0.3⅓    $0.3⅓  
Net tangible book value per share as
Of December 31, 2021 (1)
  $             
Net tangible book value after this Offering  $10,448,626   $8,123,626   $5,798,626   $3,473,626 
Net tangible book value per share after this offering  $0.01   $0.01   $0.01    Nil 
Increase in net tangible book value per share attributable to new investors in this offering  $0.01   $0.01   $0.001    Nil 
Dilution per share to new investors  $ 0.02⅓   $ 0.02⅓   $ 0.02⅓   $0.03⅓ 

 

(1) Less than $0.01 per share. Based on net tangible book value as of December 31, 2021 of $1,198,626 and 426,100,053 outstanding shares of common stock.

 

MARKET FOR OUR COMMON STOCK

 

Our common stock is quoted on over-the-counter market. The following table sets forth, for the periods indicated, the high and low closing sales price of our common stock as provided by OTC Markets Group Inc. These prices reflect inter-dealer prices, without retain mark-up or commission, and may not represent actual transactions.

 

Quarter Ended  High   Low 
   $   $ 
March 31, 2022   0.15    0.062 

 

8

 

 

Quarter Ended  High   Low 
   $   $ 
December 31, 2021   0.20    0.09 
September 30, 2021   0.20    0.15 
June 30, 2021   0.70    0.07 
March 31, 2021   0.08    0.008 
December 31, 2020   0.30    0.0001 
           
September 30, 2020   0.31    0.11 
June 30, 2020   0.15    0.12 
March 31, 2020   0.58    0.12 

 

Holders of our common stock are entitled to receive dividends as may be declared by the Board of Directors. The Board of Directors is not restricted from paying any dividends but is not obligated to declare a dividend. No cash dividends have ever been declared and it is not anticipated that cash dividends will ever be paid.

 

Management’s Discussion and Analysis

of Financial Condition and Results of Operation

 

Note about Forward-Looking Statements

 

This Offering Circular contains forward-looking statements, such as statements relating to our financial condition, results of operations, plans, objectives, future performance and business operations. These statements relate to expectations concerning matters that are not historical facts. These forward-looking statements reflect our current views and expectations based largely upon the information currently available to us and are subject to inherent risks and uncertainties. Although we believe our expectations are based on reasonable assumptions, they are not guarantees of future performance and there are a number of important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including the risks described in the Risk Factors section of this Offering Circular. By making these forward-looking statements, we do not undertake to update them in any manner except as may be required by our disclosure obligations in filings we make with the Securities and Exchange Commission under the Federal securities laws. Our actual results may differ materially from our forward-looking statements.

 

Overview

 

The Company is in its development stage and intends to build and operate solar-powered, carbon-negative greenhouses utilizing Artificial Intelligence assisted technologies to control the growing environment if it can obtain financing. The Company’s revenue is expected to come from growing farm-fresh fruits and vegetables to be sold to local markets.

 

The Company intends to produce farm-fresh fruits and vegetables for local delivery in historically productive agricultural regions with high solar indexes and close to large urban areas of the United States, such as the Front Range of Colorado and Central Valley of California.

 

Results of Operations

 

Year Ended December 31, 2020

 

During the year ended December 31, 2019 we did not generate any revenue. During the year ended December 31, 2020, we recognized revenues from sub-leasing operations of $13,125. For the twelve months ended December 31, 2020, we recognized a direct cost of revenue of $13,125.

 

During the year ended December 31, 2020, expenses from operations were $297,519 compared to $4,515 for the year ended December 31, 2019. The increase in expenses was primarily due to higher general and administrative expenses resulting from the efforts to prepare us to become a fully reporting company with the SEC.

 

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Year Ended December 31, 2021

 

For the twelve months ended December 31, 2021, we did not have any revenue. During this period the Company recognized $5,078,065 in general and administrative expenses, $14,850,000 loss from land and structures acquisitions and $47,027 in interest expense. This produced a loss of $19,906,722, of which $68,370 was attributable to minority ownership; therefore, the Company’s shareholders recorded a $19,906,722 loss.

 

Liquidity and Capital Resources

 

We have begun our operations relying on external investors. Since inception and through December 31, 2021, we have raised $2,497,452 in capital.

 

To date we have only had limited revenue, which occurred the last six months of 2020 via a sublease of farming land. Therefore, presently operations are not sufficient to sustain our operations without the additional sources of capital.

 

The Company received preliminary approval from C-PACE, a Colorado specialized solar financing program developed by federal, state and county governments. The Company is in the process of developing the engineering necessary to complete the C-Pace financing application.

 

On August 17, 2020, VitaNova agreed to provide us with a $1,000,000 line of credit. Amounts drawn on the line of credit bear interest at 6% per year. We have not drawn on this line of credit as of the date of this Offering Circular.

 

We had no cash flows during the year ended December 31, 2019.

 

Between November 30, 2021 and the date of this Offering Circular, the Company sold convertible promissory notes in the principal amount of $500,000. The notes bear interest at 6% per year, are due and payable on June 30, 2022, and are unsecured. At the option of the holder, each $100 of note principal can be converted into 2,000 Company Units. Each Unit will consist of one share of the Company’s common stock, one Series III Warrant and One Series IV Warrant. Each Series III Warrant allows the holder to purchase one share of the Company’s common stock at a price of $0.05 per share. Each Series IV Warrant allows the holder to purchase one share of the Company’s common stock at a price of $0.06⅔ per share. The Series III and Series IV Warrants expire on December 31, 2023.

 

Our sources and (uses) of cash for the periods presented were:

 

   Year ended   Year Ended 
   12/31/21   12/31/20 
         
Cash Used in Operations  $(913,381   $(351,091)
Purchase of Units from VitaNova Solar Partners, LLC   (4,420)    
Sale of common stock and warrants   214,611    351,091 
Sale of Units by VitaNova Solar Partners, LLC   962,422     
Payment due to related party   (448,925)    
Sale of Convertible Notes   308,200     

 

Capital Requirements

 

Our estimated capital requirements for the twelve month period following the date of this Offering Circular are:

 

  General and administrative expenses  $625,000 
  Payments related to the purchase of land in southeastern Colorado (1)  $2,500,000 
  Retrofit/ expand existing greenhouse and warehouse (2)  $9,500,000 
  Construction of solar system to power expanded greenhouse and warehouse  $3,000,000 

 

(1) See the “Business” section of this Offering Circular regarding payments we are required to make in connection with the purchase of these properties.
   
(2) Represents the costs to retrofit an existing greenhouse and warehouse on the land we acquired in southern Colorado. See the “Business” section of this Offering Circular for information concerning our plans to pay these costs.

 

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We believe if all Units offered are sold, and with additional capital from third party investors, we will have sufficient capital to meet our anticipated cash needs for at least the next twelve months.

 

Significant Accounting Policies

 

See Note 2 to theDecember 31, 2021 Financial Statements included as part of this Offering Circular for a discussion of our significant accounting policies.

 

Impairment Policy

 

At least once every year, management examines all of our assets for proper valuation and to determine if an impairment is necessary. In terms of real estate owned, this impairment examination also includes the accumulated depreciation. Management examines market valuations and if an additional impairment is necessary for lower of cost or market, then an impairment charge is recorded.

 

Contractual Obligations

 

As of December 31, 2021, we did not have any material capital commitments.

 

Significant Accounting Policies

 

For a discussion of our significant accounting policies please see Note 2 to the audited financial statements included as part of this Offering Circular.

 

Critical Accounting Estimates

 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities and contingencies at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. As a result, management is required to routinely make judgments and estimates about the effects of matters that are inherently uncertain. Actual results may differ from these estimates under different conditions or assumptions. The following discussion pertains to accounting estimates management believes are most critical to the presentation of our financial position and results of operations that require management’s most difficult, subjective, or complex judgments.

 

BUSINESS

 

The Company intends to generate revenue from growing fruits and vegetables for sale to local markets.

 

In 2021 the Company acquired four contiguous parcels of land totaling 157 acres in Pueblo County Colorado.

 

  Parcel 1 - The Company issued 95,000,000 shares of its common stock and agreed to pay $2,368,421 by December 31, 2022 to GrowCo Partners 1, LLC for approximately 39 acres containing one fully completed 90,000 sq. ft. greenhouse, and one adjoining fully completed 15,000 sq. ft. warehouse. on the land. The shares were issued in book entry form on November 19, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid. Parcel 1 has. The completed greenhouse and warehouse have not been in operation since 2020.
     
  Parcel 2 - The Company issued 5,000,000 shares of its common stock and agreed to pay $131, 579 by December 31, 2022 to GrowCo Partners 2, LLC for 39 acres of vacant land. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.

 

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  Parcel 3 – The Company issued 5,000,000 shares of its common stock and agreed to pay $131, 579 to GrowCo, Inc. by December 31, 2022 for 39 acres of vacant land. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.
     
  Parcel 4 - The Company issued 15,000,000 shares of its common stock and agreed to pay $394,737 by December 31, 2022 to GrowCo Partners 2, LLC for 39 acres of land with a partially completed greenhouse structure. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.

 

On the land in southern Colorado the Company plans to:

 

  1. expand the existing greenhouse from two to six acres and retrofit and expand the greenhouse and warehouse so that the equipment in the greenhouse and warehouse will run on solar power as opposed to utility provided electricity and propane. (Estimated cost: $9,500,000. Estimated time to complete: eight months). Build solar system to power the greenhouse/ warehouse (Estimated cost: $3,000,000)
     
  2. construct an additional 23 acres of greenhouse and associated warehouse space (Estimated cost: $45,500,000. Estimated time to complete: 36 months), and build a solar system to power the greenhouse and warehouse facilities (Estimated cost: $6,500,000)

 

The Company has a direct or indirect interest in the three entities listed above.

 

The Company plans to finance all or a part of the cost of retrofitting/ constructing greenhouses and warehouses and acquiring solar systems through the sale of Units offered by this Offering Circular, future offering of the Company’s securities, proceeds from the exercise of the Company’s warrants or borrowings from private lenders.

 

As of the date of this Offering Circular the Company did not have any agreements with any person to purchase any of the Company’s securities or lend any funds to the Company.

 

On August 4, 2021 the Company entered in an agreement with Mastronardi Produce Limited pursuant to which Mastronardi was granted the exclusive right to sell and market all US Grade No. 1 Products produced from all of the Company’s greenhouses in North America. For each sale, Mastronardi will be paid a low double digit percentage of the gross price received for the sale of the products grown at the Company’s greenhouses, plus all costs incurred in the sale and distribution of such products.

 

Mastronardi is a fourth-generation family owned company and the leading marketer and distributor in North America of tomatoes, peppers, cucumbers, berries and leafy greens. Mastronardi has an extensive and long-tenured retail network and is nationally recognized under the primary SUNSET® brand and other brands, including Campari®, Angel Sweet®, Flavor Bombs®, Sugar Bombs®, tomatoes and WOW™ berries.

 

Solar Energy Overview

 

Solar power is energy from the sun that is converted into thermal or electrical energy. Solar energy is the cleanest and most abundant renewable energy source available. Solar technologies can harness this energy for a variety of uses, including generating electricity, providing light or a comfortable interior environment, and heating water for domestic, commercial, or industrial use.

 

There are three main ways to harness solar energy: photovoltaic, solar heating and cooling, and concentrating solar power. Photovoltaics generate electricity directly from sunlight via an electronic process and can be used to power anything from small electronics such as calculators and road signs up to homes and large commercial businesses. Solar heating and cooling (SHC) and concentrating solar power (CSP) applications both use the heat generated by the sun to provide space or water heating in the case of SHC systems, or to run traditional electricity-generating turbines in the case of CSP power plants.

 

Solar energy is a very flexible energy technology: it can be built as distributed generation (located at or near the point of use) or as a central-station, utility-scale solar power plant (similar to traditional power plants). Both of these methods can also store the energy they produce for distribution after the sun sets, using new solar and storage technologies.

 

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In the last decade alone, solar has experienced an average annual growth rate of 48%. Thanks to strong federal policies like the solar Investment Tax Credit, rapidly declining costs, and increasing demand across the private and public sector for clean electricity, there are now nearly 78 gigawatts (GW) of solar capacity installed nationwide, enough to power 14.5 million homes.

 

The cost to install solar has dropped by more than 70% over the last decade, leading the industry to expand into new markets and deploy thousands of systems nationwide. Prices as of June 2021 are at their lowest levels in history across all market segments.

 

Solar has ranked first or second in new electric capacity additions in each of the last years. In 2019, 40% of all new electric capacity added to the grid came from solar, the largest such share in history. Solar’s increasing competitiveness against other technologies has allowed it to quickly increase its share of total U.S. electrical generation - from just 0.1% in 2010 to more than 2.5% today.

 

Homeowners and businesses are increasingly demanding solar systems that are paired with battery storage. While this pairing is still relatively new, the growth over the next five years is expected to be significant. By 2025, more than 25% of all behind-the-meter solar systems will be paired with storage, compared to under 5% in 2019.

 

MANAGEMENT

 

Officers and Directors

 

Name   Age   Position
John R. McKowen   72  

Chief Executive, Financial, and Accounting Officer and a Director

 

John R. McKowen has been an officer and director of the Company since June 2018. Prior to joining the Company, Mr. McKowen served as the Chief Executive Officer and President of GrowCo Inc., a builder of greenhouses, from May 2014 to May 2016 and again since October 2017. Mr. McKowen was the Chief Executive Officer and Chairman of the Board of Directors of Two Rivers Waters and Farming Company from November 2009 to May 2016.

 

We believe Mr. McKowen is qualified to act as a director based upon his knowledge of business practices and, in particular, his experience in building greenhouses.

 

Mr. McKowen is not independent as that term is defined in Section 803 of the NYSE American Company Guide.

 

Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until their successors are elected or appointed. Our officers are appointed by our board of directors and serve at the discretion of the board.

 

We do not have a financial expert as that term is defined by the Securities and Exchange Commission.

 

Our Board of Directors does not have standing audit, nominating or compensation committees, committees performing similar functions, or charters for such committees. Instead, the functions that might be delegated to such committees are carried out by our directors, to the extent required. Our directors believe that the cost of associated with such committees, has not been justified under our current circumstances. During the year ended December 31, 2021 we did not compensate any person for serving as an officer or a director.

 

Our Board of Directors has the ultimate responsibility to evaluate and respond to risks facing us. Our Board of Directors fulfills its obligations in this regard by meeting on a regular basis and communicating, when necessary, with our officers.

 

We have not adopted a Code of Ethics which is applicable to our principal executive, financial, and accounting officers and persons performing similar functions since we only have one executive officer.

 

Holders of our common stock can send written communications to our entire Board of Directors, or to one or more Board members, by addressing the communication to “the Board of Directors” or to one or more directors, specifying the director or directors by name, and sending the communication to our corporate office. Communications addressed to the Board of Directors as whole will be delivered to each Board member. Communications addressed to a specific director (or directors) will be delivered to the director (or directors) specified.

 

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A security holder communication not sent to the Board of Directors as a whole is not relayed to Board members which did not receive the communication.

 

Executive Compensation

 

Our executive officers will be compensated through the following three components:

 

  Base Salary
     
  Short-Term Incentives (cash bonuses)
     
  Long-Term Incentives (equity-based awards)
     
  Benefits

 

These components provide a balanced mix of base compensation and compensation that is contingent upon our executive officer’s individual performance. A goal of the compensation program is to provide executive officers with a reasonable level of security through base salary and benefits. We want to ensure that the compensation programs are appropriately designed to encourage executive officer retention and motivation to create shareholder value. We believe that our shareholders are best served when we can attract and retain talented executives by providing compensation packages that are competitive but fair.

 

Base Salaries

 

Base salaries generally have been targeted to be competitive when compared to the salary levels of persons holding similar positions in other publicly traded mining companies of comparable size. The executive officer’s respective responsibilities, experience, expertise, and individual performance are considered.

 

Short-Term Incentives

 

Cash bonuses may be awarded at the sole discretion of the Board of Directors based upon a variety of factors that encompass both individual and company performance.

 

Long-Term Incentives

 

Equity incentive awards help to align the interests of our employees with those of our shareholders. Equity based awards are made under our Equity Incentive Plan. Options are granted with exercise prices equal to the closing price of our common stock on the date of grant and may be subject to a vesting schedule as determined by the Board of Directors who administer the plan.

 

We believe that grants of equity-based compensation:

 

  enhance the link between the creation of shareholder value and long-term executive incentive compensation;
     
  provide focus, motivation, and retention incentive; and
     
  provide competitive levels of total compensation

 

In addition to cash and equity compensation programs, executive officers participate in the health and welfare benefit programs available to other employees.

 

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Compensation Table

 

The following table sets forth in summary form the compensation received by our Chief Executive Officer for the two fiscal years ended December 31, 2021:

 

Name and Principal Position  Fiscal
Year
  Salary
(1)
   Bonus
(2)
   Stock
Awards
(3)
   Option
Awards
(4)
   All Other
Compensation
(5)
   Total 
                            
John R. McKowen  2021                        
Chief Executive, Financial and Accounting Officer  2020          $8,811           $8,811 
                                  
Louise Lowe  2021                        
Secretary  2020          $302           $302 

 

(1) The dollar value of base salary (cash and non-cash) earned.
   
(2) The dollar value of bonus (cash and non-cash) earned.
   
(3) The value of all stock awarded during the periods covered by the table is calculated according to ASC 718-10-30-3 which represented the grant date fair value.
   
(4) The fair value of all stock options granted during the periods covered by the table are calculated on the grant date in accordance with ASC 718-10-30-3 which represented the grant date fair value.
   
(5) All other compensation that could not be properly reported in any other column.

 

Ms. Lowe resigned as an officer on February 5, 2021.

 

Since our inception, we have not compensated any person for acting as a director.

 

The following shows the amount we expect to pay to Mr. McKowen, and the amount of time Mr. McKowen expects to devote to our business, during the year ending December 31, 2022.

 

Projected Monthly Compensation

  

Percent of Time to Be

Devoted to our Business

 
        
$     7,500    100%

 

Transactions with Related Parties

 

On December 1, 2020 John R. McKowen was issued 88,107,690 shares of the Company’s common stock and Louise Lowe was issued 3,019,455 shares of the Company’s common stock for services rendered and valued at $0.0001 per share. A total of 29,369,230 shares owned by Mr. McKowen and 1,006,485 shares owned by Mrs. Lowe are subject to repurchase by the Company for a price of $0.0001 per share if the Warrant Performance Metric described below is not satisfied. A total of 29,369,230 shares owned by Mr. McKowen and 1,006,485 shares owned by Mrs. Lowe are subject to repurchase at such price if the Secondary Performance Metric is not satisfied.

 

The “Warrant Performance Metric” will be satisfied if Warrants issued in the Company’s 2020 Private Placement are exercised to acquire at least 42,140,266 shares of the Company’s common stock. The “Secondary Performance Metric” will be satisfied if, prior to December 31, 2022, the Company completes a “sale lease back” of a solar powered property and receives gross proceed of a least $6,000,000 from the sale.

 

On July 15, 2020, the Company and VitaNova Partners, LLC entered into a consulting agreement whereby VitaNova agreed to provide management services until a private placement was completed and the shareholders of the Company could properly elect a board of directors and Company officers could be appointed. VitaNova was paid $456,000 annually for its management services. On December 15, 2020 the consulting agreement was amended to reduce payments to $19,000 a month effective January 1, 2021.

 

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On July 12,2021 the Company issued 91,072,971 of its shares of common stock, as well as warrants to purchase an additional 10,249,375 shares of its common stock to VitaNova Partners, LLC in payment of expenses (amounting to $9,108) paid by VitaNova on behalf of the Company. The warrants are exercisable at any time on or before December 31, 2022 at a price of $0.20 per share. VitaNova Partners, LLC then transferred those shares to certain members of VitaNova in exchange for the members interests in VitaNova Partners, LLC. John McKowen, the Company’s only Officer and Director and a controlling person of VitaNova, did not receive any of those shares.

 

See the “Business” section of this Offering Circular for information concerning the Company’s acquisition of land from three related parties.

 

PRINCIPAL SHAREHOLDERS

 

The following table provides information with respect to the beneficial ownership of our common stock, of (i) each person or entity that is a beneficial owner of more than 5% of our outstanding common stock, (ii) each executive officer and director and (iii) all our directors and executive officers as a group.

 

Name and Address of Beneficial Owner  Shares Owned   Percent of Outstanding Shares 
John R. McKowen   88,107,690    20.65%
335 A Josephine St.          
Denver, Colorado 80206          
           
GrowCo Partners 1, LLC   70,000,000(1)    16.41%
335 A Josephine Street          
Denver, CO 80206          
           
VitaNova Partners, LLC   107,581,262(1)    12.25%
335 A Josephine Street          
Denver, CO 80206          
           
GrowCo Partners 2, LLC   20,000,000(1)    4.69%
335 A Josephine Street          
Denver, CO 80206          
           
GrowCo Inc.   5,000,000(1)    1.17%
335 A Josephine Street          
Denver, CO 80206          
           
Prasil Family Matters, LLC   39,137,327    9.17%
7275 N. Scottsdale Road          
Paradise Valley, AZ 85253          
           
Jon D. & Linda W. Gruber Trust   36,650,603    8.59%
300 Tamal Plaza, Ste 280          
Corte Madera, CA 94925          
           
I. Wistar Morris   19,998,386    5.7%
19 Pond Lane          
Bryn Mawr, PA 19010          
           
All officers and directors as a group (one person)   290,688,952    68.8%

 

(1) This entity is controlled by Mr. McKowen.
   
(2) Includes shares issuable prior to December 31, 2022 upon the exercise of options or warrants held by:

 

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Name  Options or Warrants
Exercisable Prior to December 31, 2022
 
     
VitaNova Partners, LLC   55,312,837 
335 A Josephine Street     
Denver, CO 80206     

 

PLAN OF DISTRIBUTION

 

We are offering up to 300,000,000 Units at a price of $0.03⅓ per Unit, for a total of up to $10,000,000 in gross offering proceeds, assuming all Units offered are sold. Each Unit consists of one share of common stock, one Series III Warrant and one Series IV Warrant. Each Series III Warrant allows the holder to purchase one share of our common stock at a price of $0.05 per share. Each Series IV Warrant allows the holder to purchase one share of our common stock at a price of $0.06⅔ per share. The Series III and Series IV Warrants expire on December 31, 2023. The minimum investment for any investor is $1,000, unless such minimum is waived by the Company in its sole discretion and on a case-by-case basis. There is no minimum offering amount or escrow required as a condition to closing and we may sell significantly fewer Units than those offered.

 

The Company has engaged Dalmore Group, LLC (“Dalmore”), a broker-dealer registered with the Securities and Exchange Commission and a member of FINRA, to act as the broker-dealer of record for this Offering, but not for underwriting or placement agent services. As compensation, the Company has agreed to pay Dalmore a commission equal to 2% of the amount raised in the Offering to support the Offering on all invested funds after the issuance of a No Objection Letter by FINRA. In addition, the Company has paid Dalmore a one-time advance set up fee of $5,000 to cover reasonable out-of-pocket accountable expenses actually anticipated to be incurred by Dalmore, such as, among other things, preparing the FINRA filing. Dalmore will refund any fee related to the advance to the extent it is not used, incurred or provided to the Company. In addition, the Company will pay a one-time $20,000 consulting fee that will be due immediately after FINRA issues a No Objection Letter.

 

The Company will also pay selected dealers a commission of 5% of the amount sold by the selected dealers.

 

Investors wishing to participate in this offering should go to www.VetaNova/RegA.com, where they can find copies of this Offering Circular. You should click on the “Invest Now” button where you can fill out your subscription agreement, upload required documents, and submit payment for your subscription. The Company is accepting payments via credit card, ACH, and wire transfer. The Company will accept or reject subscriptions in its sole discretion and subscriptions will close on a monthly basis during the term of this offering.

 

If a subscription is rejected, the Company, as applicable, will return the investor’s funds to the investor following the monthly close of subscriptions. If a subscription is accepted, the Company will send issuance instructions to the Company’s transfer agent for the accepted subscriptions. Shares and Warrants purchased in this Offering will be issued to investors in book entry form and held on the records of the Company’s transfer agent.

 

As of the date of this Offering Circular, we have not entered into any arrangements with any selling agents other than Dalmore to act of the broker/dealer of record for the sale of Units; however, we may engage one or more additional selling agents to sell the securities in the future. If we elect to do so, we will file a supplement to this circular to identify them. We do not pay promotions fees to third parties; however, third party sites may highlight our offering. Statements on these sites should not be considered as coming from the Company and should not be relied upon in considering an investment in the Units. We disclaim all liability from claims made on such third party sites.

 

Our directors and officers will not register as broker-dealers under Section 15 of the Securities Exchange Act of 1934 in reliance upon Rule 3a4-1. Rule 3a4-1 sets forth those conditions under which a person associated with an issuer may participate in the offering of the issuer’s securities and not be deemed to be a broker-dealer. The conditions are that:

 

  the person is not statutorily disqualified, as that term is defined in Section 3(a)(39) of the Act, at the time of his participation; and

 

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  the person is not at the time of their participation an associated person of a broker-dealer; and
     

 

 

the person is not compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
     
  the person restricts his participation to any one or more of the following activities:
     
    (A) Preparing any written communication or delivering such communication through the mails or other means that does not involve oral solicitation by the person of a potential purchaser; provided, however, the content of such communication is approved by an officer or director of the Company;
       
    (B) Responding to inquiries of a potential purchaser in a communication initiated by the potential purchaser; provided, however, the content of such responses are limited to information contained in a registration statement filed under the Securities Act of 1933 or other offering document; or
       
    (C) Performing ministerial and clerical work involved in effecting any transaction.

 

Our officers and directors are not statutorily disqualified, are not being compensated, and are not associated with a broker-dealer. They are and will continue to hold their positions as officers or directors following the completion of the offering and have not been during the past twelve (12) months and are currently not brokers or dealers or associated with brokers or dealers. Our officers and directors will not receive a commission or otherwise be compensated for their sale of any Units.

 

Our shares and warrants are not now listed on any national securities exchange or the NASDAQ stock market. There is also no guarantee that our securities will ever trade on any listed exchange or NASDAQ stock market. Accordingly, our shares and warrants should be considered highly illiquid, which inhibits investors’ ability to resell their shares and warrants.

 

Upon this Offering Circular being qualified by the SEC, the Company may offer and sell Units from time to time. This offering will terminate on December 31, 2023. Notwithstanding the foregoing, the Company may terminate this offering at any time.

 

There can be no assurances that the Company will sell any or all of the Units. All Units will be offered on a “best efforts” basis.

 

Should any fundamental change occur regarding the status or other matters concerning the Company, we will file an amendment to this Offering Circular disclosing such matters.

 

Generally, no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, 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.

 

All subscription agreements and payments are irrevocable until accepted. A subscription agreement executed by a subscriber is not binding on the Company until it is accepted by the Company. There is no minimum offering amount and no provision to escrow or return investor funds if any minimum number of Units is not sold.

 

We will not apply for “blue sky” registration in any state. We intend to sell the Units only in the jurisdictions in which an exemption from the registration requirements is available, and purchases of Units may be made only in those jurisdictions.

 

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DESCRIPTION OF SECURITIES

 

Units

 

By means of this Offering Circular we are offering 300,000,000 Units at a price of $0.03⅓ per Unit. Each Unit is comprised of one share of common stock, one Series III Warrant and one Series IV Warrant.

 

Common Stock

 

We are authorized to issue 500,000,000 shares of common stock. Holders of our common stock are each entitled to cast one vote for each share held of record on all matters presented to the shareholders. Cumulative voting is not allowed; hence, the holders of a majority of our outstanding common shares can elect all directors.

 

Holders of our common stock are entitled to receive such dividends as may be declared by our Board of Directors out of funds legally available and, in the event of liquidation, to share pro rata in any distribution of our assets after payment of liabilities. Our Board of Directors is not obligated to declare a dividend. It is not anticipated that dividends will be paid in the foreseeable future.

 

Holders of our common stock do not have preemptive rights to subscribe to additional shares if issued. There are no conversions, sinking fund or similar provisions regarding the common stock. All outstanding shares of common stock are fully paid and non-assessable.

 

We have not paid any dividends and we do not plan on paying any dividends in the foreseeable future.

 

Warrants

 

Each Series III Warrant allows the holder to purchase one share of the Company’s common stock at a price of $0.05 per share. Each Series IV Warrant allows the holder to purchase one share of the Company’s common stock at a price of $0.06⅔ per share. The Series III and Series IV Warrants expire on December 31, 2023.

 

Other provisions of the Warrants:

 

1. Unless exercised within the time provided for exercise, the warrants will automatically expire.

 

2. The exercise price of the warrants may not be increased during the term of the warrants, but the exercise price may be decreased at the discretion of the Company’s Board of Directors by giving each warrant holder notice of such decrease. The exercise period for the warrants may be extended by the Company’s Board of Directors giving notice of such extension to each warrant holder of record.

 

3. There is no minimum number of shares which must be purchased upon exercise of the warrants.

 

4. The exercise price of the warrants, as well as the shares issuable upon the exercise of the warrants, will be proportionately adjusted in the event of any stock split, stock dividend, reclassification, capital reorganization or merger.

 

5. The holders of the warrants have no voting power and are not entitled to dividends. In the event of the liquidation or dissolution of the Company, holders of the warrants will not be entitled to participate in the distribution of the Company’s assets.

 

Transfer Agent

 

Old Monmouth Stock Transfer Co., Inc.

200 Memorial Parkway

Atlantic Highlands, NJ 07716

(732) 872-2727

 

19

 

 

LEGAL MATTERS

 

Hart and Hart, LLC of Denver, Colorado has passed upon the validity of our common stock offered by this Offering Circular.

 

EXPERTS

 

Our financial statements as of December 31, 2020 and 2019 and for the periods then ended have been audited by BF Borgers CPA PC, our independent registered public accounting firm, as set forth in their report which is part of this Offering Circular. Such financial statements have been incorporated herein in reliance on the report of such firm given upon their authority as experts in accounting and auditing.

 

INDEMNIFICATION

 

The Company’s Bylaws authorize indemnification of a director, officer, employee or agent of the Company against expenses incurred by him in connection with any action, suit, or proceeding to which he is named a party by reason of his having acted or served in such capacity, except for liabilities arising from his own misconduct or negligence in performance of his duty. In addition, even a director, officer, employee, or agent of the Company’ who was found liable for misconduct or negligence in the performance of his duty may obtain such indemnification if, in view of all the circumstances in the case, a court of competent jurisdiction determines such person is fairly and reasonably entitled to indemnification. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, or persons controlling the Company pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is therefore unenforceable.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a Regulation A Offering Statement on Form 1-A under the Securities Act with respect to the shares of common stock offered hereby. 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 about us and the common stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or 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. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Securities Exchange Act of 1934. You may read and copy this information at the SEC’s Public Reference Room, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

 

20

 

 

VETANOVA INC

 

CONDENSED AND CONSOLIDTED FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 31, 2021

 

Report of Independent Registered Public Accounting Firm   F-1
     
Balance Sheets as of December 31, 2021 and December 31, 2020   F-2
     
Statements of Operations for the Twelve Months ended December 31, 2021 and December 31, 2020   F-3
     
Statements of Cash Flows for the Twelve Months ended December 31, 2021 and December 31, 2020   F-4
     
Statements of Changes in Stockholders’ Equity for the Twelve Months ended December 31, 2021 and December 31, 2020   F-5
     
Notes to the Unaudited Financial Statements   F-6

 

21

 

 

Report of Independent Registered Public Accounting Firm

 

To the shareholders and the board of directors of VETANOVA INC

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of VETANOVA INC as of December 31, 2021 and 2020, the related statements of operations, stockholders’ equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

 

Substantial Doubt about the Company’s Ability to Continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

/s/ BF Borgers CPA PC

 

BF Borgers CPA PC

 

We have served as the Company’s auditor since 2020.

Lakewood, CO

March 29, 2022

 

F-1 

 

 

VETANOVA INC

Condensed and Consolidated Balance Sheets

 

   As of December 31, 
  2021   2020 
ASSETS        
Current Assets          
Cash and cash equivalents  $108,951   $- 
Prepaid expenses   -    13,734 
Due from related party - VitaNova Partners LLC   -    51,179 
Total Current Assets   108,951    64,913 
Long Term Assets          
Greenhouse   3,410,000   $- 
Land   90,000    - 
Total Long Term Assets   3,500,000    - 
TOTAL ASSETS  $3,608,951   $64,913 
           
LIABILITIES & STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable and accrued liabilities  $37,630   $- 
Interest payable   7,809    11,925 
Payment due to related parties for land and greenhouse acquisition   2,051,075    - 
Bridge note payable   219,292    - 
Bridge note payable to related party (net of discount)   94,519    - 
Total Current Liabilities   2,410,325    11,925 
TOTAL LIABILITIES   2,410,325    11,925 
Commitments & Contingencies (Notes 3, 4 and 6)          
Stockholders’ Equity          
Common stock, $0.0001 par value, 500,000,000 shares authorized, 426,100,053 and 194,971,866 shares issued and outstanding on September 30, 2021 and December 31, 2020, respectfully   91,835    68,694 
VitaNova Solar Partners, LLC 71,774,011 common units outstanding and 7,379,305 preferred units outstanding, 100,000,000 preferred and 100,000,000 common units authorized   604,252    - 
Additional paid-in capital   20,435,134    298,322 
Accumulated (deficit)   (20,289,120)   (314,028)
Total VETANOVA INC Equity   842,101    52,988 
Non-controlling interest in a subsidiary   356,525    - 
TOTAL STOCKHOLDERS’ EQUITY   1,198,626    52,988 
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY  $3,608,951   $64,913 

 

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

 

F-2 

 

 

VETANOVA INC

Condensed and Consolidated Statements of Operations

 

   Twelve Months ended December 31, 
   2021   2020 
Revenue  $-   $13,125 
Direct cost of revenue   -    13,125 
Gross Margin   -    - 
Operating Expenses          
General and administrative   5,078,065    297,519 
Depreciation and amortization   -    - 
Total Operating Expenses   5,078,065    297,519 
Profit (Loss) from Operations   (5,078,065)   (297,519)
Other Income (Expense)          
Loss on asset acquisitions - related party   (14,850,000)   - 
Interest expense   (47,027)   - 
Total Other Income (Expense)   (14,897,027)   - 
Minority Share of Loss   68,370      
Net Profit (Loss) Before Taxes   (19,906,722)   (297,519)
Income Tax (Provision) Benefit   -    - 
Net Profit (Loss)  $(19,906,722)  $(297,519)
           
(Loss) per Common Share - Basic  $(0.08)  $(0.01)
(Loss) per Common Share - Dilutive  $(0.08)  $(0.01)
Weighted Average Shares Outstanding:
Basic   251,906,754    19,919,780 
Dilutive   251,906,754    19,919,780 

 

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

 

F-3 

 

 

VETANOVA INC

Condensed and Consolidated Statements of Cash Flows

 

   Twelve Months Ended Dec 31, 
   2021   2020 
Cash Flows from Operating Activities:          
Net Loss  $(19,975,092)  $(297,519)
Adjustments to reconcile net (loss) to net cash used in  operating activities:          
Depreciation & amortization   5,611    - 
Loss and impairment on purchase of assets   14,850,000    - 
Stock issued for services   4,104,917      
Net change in operating assets and liabilities:          
Decrease in prepaid expenses   13,734    15,924 
Decrease (Increase) in related party receivable   51,179    (13,000)
(Decrease) in related party payable   -    (45,798)
Increase (Decrease) in accounts payable   33,514    (10,698)
VSP common units issued for services   2,756    - 
Net Cash Used in Operating Activities   (913,381)   (351,091)
Cash Flows from Investing Activities   -    - 
Purchase of VSP LLC units   (4,420)   - 
Purchase of land   -      
Net Cash Used in Investing Activities   (4,420)   - 
Cash Flows from Financing Activities          
Sale of units   205,037    351,091 
Sale of VSP LLC units   962,442    - 
Payments to related parties in connection with land acquisitions   (448,925)     
Sale of convertible debt   308,200      
Cash Flows from Financing Activities   1,026,754    351,091 
Net Change in Cash & Cash Equivalents   108,951    - 
Beginning Cash & Cash Equivalents   -    - 
Ending Cash & Cash Equivalents  $108,951   $- 

 

Non-cash transactions 
  
   For the 12 months ended December 31, 
   2021   2020 
NCI  $356,525   $- 
Purchase of land for deferred payment and issuance of shares  $300,000   $- 
Purchase of GCP1 land and infrastructure for deferred payment and issuance of shares  $6,873,568   $- 
Shares issued for prior common shares due  $4,000,000   $- 

 

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

 

F-4 

 

 

VETANOVA INC

Condensed and Consolidated Statements of Changes in Stockholders’ Equity

 

   Common Stock   VetaNova Solar Partners   Additional Paid In   Accumulated   Noncontrolling   Stockholders’ 
   Shares (000s)   Amount   (VSP)   Capital   (Deficit)   interest in VSP   Equity 
Balances, December 31, 2019   627   $49,260        $(49,260)  $(16,509)       $(16,509)
2020 Activity:                                   
Net (Loss)   -    -         -    (297,519)        (297,519)
Private placement   35,109    3,511         347,582    -         351,093 
Stock issued for services   103,623    10,362         -    -         10,362 
Stock issued to VitaNova Partners LLC   55,613    5,561         -    -         5,561 
Balances, December 31, 2020   194,972   $68,694   $-   $298,322   $(314,028)  $-   $52,988 
                                    
2021 Activity:                                   
Net (Loss)   -    -    -    -    (19,906,722)   -    (19,906,722)
Private placement - VTNA   115,961    11,624    -    193,412    -    -    205,036 
VetaNova Solar Partners   -    -    604,252    -    (68,370)   356,525    892,407 
Return of stock issued for services   (2,333)   (233)   -    -    -    -    (233)
Stock issued for services   22,500    2,250    -    4,102,900    -    -    4,105,150 
Stock issued for asset purchases   95,000    9,500    -    15,840,500    -    -    15,850,000 
Stock re-issued to VitaNova Partners   -    -    -    -    -    -    - 
Balances, December 31, 2021   426,100    91,835    604,252    20,435,134    (20,289,120)   356,525    1,198,626 

 

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

 

F-5 

 

 

VETANOVA INC

Notes to Condensed Financial Statements

For the Twelve Months Ended December 31, 2021 and December 31, 2020

 

Note 1 – Organization and Business

 

The Company is in its development stage and intends to build and operate solar-powered, carbon-negative greenhouses utilizing Artificial Intelligence assisted technologies to control the growing environment if the Company can obtain financing. The Company’s revenue is expected to come from growing farm-fresh fruits and vegetables to be sold to local markets.


The Company intends to produce farm-fresh fruits and vegetables for local delivery in historically productive agricultural regions with high solar indexes and close to large urban areas of the United States, such as the Front Range of Colorado and Central Valley of California.


In 2021 the Company acquired four contiguous parcels of land from a related party totaling 157 acres in Pueblo County Colorado.

 

  Parcel 1 - The Company issued 95,000,000 shares of its common stock and agreed to pay $2,368,421 by December 31, 2022 to GrowCo Partners 1, LLC for approximately 39 acres containing one fully completed 90,000 sq. ft. greenhouse, and one adjoining fully completed 15,000 sq. ft. warehouse. on the land. The shares were issued in book entry form on November 19, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid. Parcel 1 has. The completed greenhouse and warehouse have not been in operation since 2020.
     
  Parcel 2 - The Company issued 5,000,000 shares of its common stock and agreed to pay $131, 579 by December 31, 2022 to GrowCo Partners 2, LLC for 39 acres of vacant land. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.
     
  Parcel 3 – The Company issued 5,000,000 shares of its common stock and agreed to pay $131, 579 to GrowCo, Inc. by December 31, 2022 for 39 acres of vacant land. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.
     
  Parcel 4 - The Company issued 15,000,000 shares of its common stock and agreed to pay $394,737 by December 31, 2022 to GrowCo Partners 2, LLC for 39 acres of land with a partially completed greenhouse structure. The shares were issued in book entry form on November 29, 2021. The cash amount will bear interest at 6% per year from August 17, 2021 until paid.

 

On the land in southern Colorado the Company plans to:

 

  retrofit the existing greenhouse and warehouse so that the equipment in the greenhouse and warehouse will run on solar power as opposed to utility provided electricity and propane. (Estimated cost: $750,000. Estimated time to complete: eight months) and build solar system to power the greenhouse/ warehouse (Estimated cost: $1,125,000)
     
  construct a total 25 acres of. greenhouse and associated warehouse space (Estimated cost: $55,000,000. Estimated time to complete: 36 months), and build a solar system to power the greenhouse and warehouse facilities (Estimated cost: $9,500,000)

 

The Company has a direct or indirect interest in the three entities listed above.

 

The Company plans to finance all or a part of the cost of retrofitting/ constructing greenhouses and warehouses and acquiring solar systems through future offering of the Company’s securities, proceeds from the exercise of the Company’s warrants or borrowings from private lenders.

 

F-6 

 

 

As of December 31, 2021 the Company did not have any agreements with any person to purchase any of the Company’s securities lend any funds to the Company or purchase and lease back any of the greenhouse/ warehouse facilities which the Company plans to retrofit or construct.

 

On August 4, 2021 the Company entered in an agreement with Mastronardi Produce Limited pursuant to which Mastronardi was granted the exclusive right to sell and market all US Grade No. 1 Products produced from all of the Company’s greenhouses in North America. For each sale, Mastronardi will be paid a low double digit percentage of the gross price received for the sale of the products grown at the Company’s greenhouses, plus all costs incurred in the sale and distribution of such products.

 

Mastronardi is a fourth-generation family owned company and the leading marketer and distributor in North America of tomatoes, peppers, cucumbers, berries and leafy greens. Mastronardi has an extensive and long-tenured retail network and is nationally recognized under the primary SUNSET® brand and other brands, including Campari®, Angel Sweet®, Flavor Bombs®, Sugar Bombs®, tomatoes and WOW™ berries.

 

Going Concern

 

The Company has suffered recurring losses from initial buildout and has a significant accumulated deficit, which, as of December 31, 2021, was $20,289,120. In addition, the Company continues to experience negative cash flows from initial buildout. These factors raise substantial doubt about the Company’s ability to continue as a going concern if additional capital is not raised. Management’s plans in regard to these matters is to continue its capital raise activities, and if necessary, substantially reduce general and administrative costs along with forgoing capital expenditures. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Note 2 – Summary of Significant Accounting Policies

 

Basis of Presentation

 

The Company’s consolidated financial statements, prepared using the accrual basis of accounting, have been presented in accordance with United States generally accepted accounting principles and stated in US dollars.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates.

 

Consolidation

 

In January 2021, the Company formed VetaNova Solar Partners, LLC (“VSP”). VSP is authorized to issue 100,000,000 common and 100,000,000 preferred membership units. As of December 31, 2021, 71,744,011 common units and 7,379,305 preferred units were outstanding, representing a total of 79,153,316 units outstanding. The Company owns 44,209,020 of common units of VSP which represent approximately 55.85% of the outstanding common units of VSP. Additionally, both the Company and VSP share common management. As a result, VSP is consolidated with the Company’s financial statements.

 

Cash and cash equivalents

 

For purposes of reporting cash flows, the Company considers cash and cash equivalents to include highly liquid investments with original maturities of 90 days or less. Those are readily convertible into cash and not subject to significant risk from fluctuations in interest rates. The recorded amounts for cash equivalents approximate fair value due to the short-term nature of these financial instruments.

 

F-7 

 

 

Due from related party – VitaNova Partners, LLC

 

As of December 31, 2020, the Company has advanced funds to a related party, VitaNova Partners, LLC for a total of $51,179. As of December 31, 2021, this has been fully paid.

 

Greenhouse and associated land

 

On November 8, 2021, the Company entered into an agreement to purchase an approximately 39 acres along with a greenhouse and warehouse on adjacent property to the 188 acres acquired above. For this purchase, the Company issued 25,000,000 shares of the Company’s common stock, and $1,842105 in cash, to be paid by December 31, 2022.

 

The land and structures were acquired from a related party entity and therefore, the land and structure value was transferred at historical cost. Based on consideration paid, the Company recognized a loss of $5,818,537 from this acquisition.

 

After completing the above acquisitions, the Company commissioned an appraisal to be performed. This appraisal gave an “as-is” estimate of value at $3,500,000, which included the greenhouse and infrastructure and land. Therefore, the Company recognized an impairment of $3,673,568.

 

Income Taxes

 

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company has determined the deferred tax assets and liabilities on the basis of the differences between the financial statement and tax basis of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

 

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, it would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

 

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of its position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

 

Loss per Share

 

Basic loss per share is computed by dividing the loss attributed to the Company’s common shareholders for the period by the weighted average number of common shares outstanding for the period. Diluted loss per share is computed by dividing the net income for the period by the weighted average number of common and potential common shares outstanding during the period.

 

As of December 31, 2021, and December 31, 2020, the Company’s outstanding warrants were excluded from the fully diluted weighted average number of shares outstanding since the warrants would be anti-dilutive.

 

Accounting for Equity Raise

 

The Company recently sold common stock and warrants. Accounting Standards Codification (“ASC”) requires the Company to first analyze the warrants to determine if the warrants are a liability or an equity instrument.

 

F-8 

 

 

The warrants in the offering qualify as equity. The warrants do not obligate the Company to repurchase its shares by transferring an asset. The warrants do not obligate the Company to settle the warrants by issuing a variable number of shares if the monetary value of the obligation is based on a predetermined fixed amount, variation in something other than the issuer’s stock price, or variations inversely related to the issuers stock price. Therefore, since there is no obligation on behalf of the Company, the warrants have been classified as equity.

 

The next step is to determine the fair value of the equity unit. The Company’s offering does not meet any of the four areas of ASC 820-10-30-3A requiring a fair value calculation; therefore, fair value equals the actual transaction value. The next step is to compute the fair in order to determine the allocation of value between the common shares and the warrants issued (ASC 815). The Company performed this calculation which gave a value of 50% to the warrant and 50% to the common shares.

 

The following variables were used to calculate the warrant value:

 

  Annualized volatility of 865%
  Expected life in years of 1.02
  Discount rate – bond equivalent (US Treasury 5-year coupon rate) of 0.37%

 

The common share value was computed by evaluating each equity raise closing date to the Company’s market stock price to the price issue, which was $0.01/share.

 

Accounting for debt to equity conversions

 

For the quarter ending December 31, 2021, the Company issued bridge notes that contains a convertible. These notes mature on June 30, 2022. On, or before, maturity date, the notes can be exchanged for one share of the Company’s stock at $0.05/share. During this offering period, VTNA stock was priced at between $0.05 to $0.15/share.

In order to simplify, and provide less confusion, on accounting for debt with conversion options, FASB release ASU 2020-06 in August 2020.

 

ASU 2020-06 simplifies the accounting for convertible instruments. Therefore, the embedded conversion features no longer are separated from the debt with conversion features that are not required to be accounted for as derivatives under or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and therefor will be accounted for as a single equity instrument measured at its historical cost.

 

Note 3 – Payment due to related parties for land and structure purchases

 

On August 17, 2021, the Company acquired from a related party approximately 118 contiguous acres located near the Arkansas River in Avondale, Colorado, for 25,000,000 shares of the Company’s common stock, which were issued on October 6, 2021, and $657,895 in cash to be paid by December 31, 2022.

 

The issuance of the 25,000,000 common shares is valued at the Company’s public market traded closing price of $0.20/share on August 17, 2021, or $5,000,000.

 

On November 8, 2021, the Company acquired from a related party approximately 39 contiguous acres located next to the 118 acres purchased above and a greenhouse and warehouse, for 70,000,000 shares of the Company’s common stock, which were issued on October 6, 2021, and $1,842,105 in cash to be paid by December 31, 2022.

 

The issuance of the 25,000,000 common shares is valued at the Company’s public market traded closing price of $0.155/share on October 6, 2021, or $10,850,000.

 

During the quarter ended December 31, 2021, the Company paid $448,925 to related parties for the acquisition of land in southern Colorado by offsetting amounts owed by the related parties to the Company.

 

F-9 

 

 

Note 4 – Notes Payable

 

The following is a detail of the bridge notes payable:

 

   December 31, 2021   December 31, 2020
Note  Principle Balance   Accrued Interest   Discount   Principle Balance   Interest rate   Security
Bridge Notes  $   235,000   $1,584   $15,708   $    -    6%  Deeds of trust on certain property
Bridge Note - related party  $100,000   $1,291   $5,481   $-    6%   
Totals  $335,000   $2,874   $21,189              
Less: note discounts  $21,189                        
Total current notes due  $313,811                        

 

For the quarter ending December 31, 2021, the Company issued bridge notes that contains a convertible. These notes mature on June 30, 2022. On, or before, maturity date, the notes can be exchanged for one share of the Company’s stock at $0.05/share. During this offering period, the Company’s stock was priced at between $0.05 to $0.15/share. There are no conversion contingencies. Only the holder of the bridge notes controls the conversion rights.

 

Note 5 – Equity Transactions

 

During the twelve months ended December 31, 2021 there were the following equity transactions:

 

  115,961,484 shares to outside investors;
  22,500,000 stock issued for services;
  95,000,000 stock issued for land and structure purchases, and
  2,333,333 shares returned from a prior issuance to a consultant for services rendered.

 

During the year ended December 31, 2020 there were the following equity transactions:

 

  91,127,145 shares issued to the Company’s founders, officers and board members;
  12,495,700 shares issued to the Company’s consultants;
  55,612,837 shares issued to VitaNova Partners, LLC, and
  35,109,231 shares issued to outside investors.

 

Note 6 – Income Taxes

 

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which significantly changed U.S. tax law. The Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while also imposing a deemed repatriation tax on previously deferred foreign income. The Act also created a new minimum tax on certain future foreign earnings. The impact of the Act had no material impact on the Company’s tax liability and deferrals.

 

The Company record tax positions as liabilities in accordance with ASC 740 and adjust these liabilities when our judgement changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the recognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. As of December 31, 2021, and 2020, we have not recorded any uncertain tax positions in our financial statements. The Company has not filed tax returns for the year ended December 31, 2021, December 31, 2019 and December 31, 2018. The Company has filed tax returns for the year ended December 31, 2020. Prior to January 31, 2018, there was no financial or taxable transactions since 2011, so the company does not anticipate any material penalties.

 

F-10 

 

 

Book loss reconciliation to estimated taxable income is as follows:

 

   2021   2020 
Book loss  $(19,906,722)  $(297,519)
Tax adjustments:          
Loss on asset acquisitions   14,850,000    - 
Estimate of taxable income  $(5,056,722)  $(297,519)

 

The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. On December 31, 2021 and December 31, 2020, we had no unrecognized tax benefits in income tax expense.

 

The components of the deferred tax asset are as follows:

 

   2021   2020 
Current deferred tax asset          
Net operating loss carryforwards  $(1,379,054)  $(83,664)
Other adjustments:          
None   -    - 
Total cumulative deferred tax asset   (1,379,054)   (83,664)
Valuation allowance   1,379,054    83,664 
Effective income tax asset  $-   $- 

 

Income tax provision is summarized below (in thousands):

 

   2021   2020 
Income tax provision:        
Current benefit (expense)          
Federal  $-   $- 
State   -    - 
Total current   -    - 
Deferred benefit (expense)          
Federal   1,061,912    62,479 
State   234,126    13,127 
Total deferred   1,296,038    75,606 
Less: Valuation allowance   (1,296,038)   (75,606)
Total  $-   $- 

 

For the years ended December 31, 2021 and December 31, 2020, the deferred tax asset of $1,296,038 and $75,606, respectively, has a valuation allowance of $1,296,038 and $75,606, respectively, since management has determined the tax benefit cannot be reasonably assured of being used in the near future. The net operating loss carry forward, if not used, will begin to expire in 2045, and is severely restricted as per the Internal Revenue Code if there is a change in ownership.

 

Note 7 – Related Party Transactions

 

As of September 30, 2021 VitaNova Partners owed the Company $480,578. During the three months ended December 31, 2021 this was paid in full as an offset to the amounts owed to GrowCo Partners 2, LLC, a related party, and accrued interest owed.

 

F-11 

 

 

On July 15, 2020, the Company and VitaNova entered into a consulting agreement whereby VitaNova would provide management services to the Company. VitaNova is paid $456,000 annually for its management services. Payments are made in 12 monthly instalments of $38,000. On December 15, 2020 the consulting agreement was amended to reduce payments to $19,000 a month effective January 1, 2021.

 

On August 17, 2021, the Company acquired from a related party approximately 118 contiguous acres located near the Arkansas River in Avondale, Colorado, for 25,000,000 shares of the Company’s common stock, which were issued on October 29, 2021, and $657,895 in cash to be paid by December 31, 2022.

 

On November 8, 2021, the Company acquired from a related party approximately 39 contiguous acres located next to the 118 acres purchased above and a greenhouse and warehouse, for 70,000,000 shares of the Company’s common stock, which were issued on October 6, 2021, and $1,842,105 in cash to be paid by December 31, 2022.

 

During the year ended December 31, 2020, there were the following equity transactions involving related parties:

 

  91,127,145 shares issued to the Company’s founders, officers and board members, and
  55,612,837 shares issued to VitaNova Partners, LLC.

 

During the twelve months ended December 31, 2021 there were the following equity transactions involving related parties:

 

  17,621,538 VSP common units were issued to John McKowen, and
  95,000,000 shares of the Company’s common stock issued for land and greenhouse/warehouse purchase

 

Note 9 - Subsequent Events

 

On February 8, 2022 the Company entered into an agreement with Dalmore Group, LLC pursuant to which Dalmore Group will act as the Company’s broker/ dealer of record in connection with the Company’s future Regulation A+ Offering.

 

No money or other consideration is being solicited by means of this report, and if sent, will not be accepted. No offer to buy the Company’s securities can be accepted and no part of the purchase price can be received until the Company’s offering statement is qualified, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance is given by the Company after the qualification date. A person’s indication of interest involves no obligation or commitment of any kind.

 

F-12 

 

 

PART III- EXHIBITS

 

Index to Exhibits

 

Number   Description
2.1 (1)   Articles of Incorporation, as amended
2.3 (1)   Bylaws
3.2.1 (6)   Form of Warrant
3.2.2 (2)   Promissory Note dated August 17, 2020 due to VitaNova Partners LLC
3.2.3   Form of Series III Warrant
3.2.4   Form of Series IV Warrant
4   Subscription Agreement
6.4 (1)   Securities Purchase Agreement between VitaNova Inc and the several investors listed therein
6.5 (3)   Management Agreement between VitaNova Inc and VitaNova Partners LLC
6.6 (4)   Modification of Management Agreement between VitaNova Inc and VitaNova Partners LLC
6.7 (5)   Agreement to acquire GrowCo Partners 1, LLC (By virtue of this agreement, the Company will acquire the real property owned by GrowCo Partners 1, LLC).
6.8 (5)   Agreement to acquire real property owned by GrowCo Partners 2, LLC.
6.9 (5)   Agreement to acquire real property owned by GrowCo, Inc.
6.10(6)   Amended Agreement to acquire GrowCo Partners 1, LLC
6.11(6)   Amended Agreement to acquire real property owned by GrowCo Partners 2, LLC.
6.12(6)   Amended Agreement to acquire real property owned by GrowCo, Inc.
6.13(6)   Agreement with Mastronardi Produce Limited (Certain information has been excluded from this agreement, indicated by blacked out wording, because such information is (i) not material and (ii) would be completely harmful if publicly disclosed)
6.14   Agreement with Dalmore Group, LLC
9.1   Consent of Attorneys
9.2   Consent of Accountants
12   Legal Opinion

 

(1)Incorporated by reference to the same exhibit filed with the Company’s Registration Statement on Form 10.
  
(2)Incorporated by reference to the same exhibit filed with the Company’s report of Form 10-K for the year ended December 31, 2020.
  
(3)Incorporated by reference to Exhibit 20.1 filed with the Company’s report of Form 10-K for the year ended December 31, 2020.
  
(4)Incorporated by reference to Exhibit 20.2 filed with the Company’s report of Form 10-K for the year ended December 31, 2020.
  
(5) Incorporated by reference to the same exhibit filed with Amendment No. 1 to the Company’s registration statement on Form S-1 (File #333-258344).
   
(6) Incorporated by reference to the same exhibit filed with Amendment No. 3 to the Company’s registration statement on Form S-1 (File #333-258344)

 

22
 

 

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 Denver, Colorado on April 27, 2022.

 

(Exact name of issuer as specified in its charter): VetaNova, Inc.

 

By: /s/ John McKowen  
  John McKowen, Principal Executive Officer  
     
(Date): April 27, 2022  
     
  /s/ John McKowen  
  John McKowen, Principal Financial and Accounting Officer  
     
(Date): April 27, 2022  

 

SIGNATURES OF DIRECTORS:

 

/s/ John McKowen   April 27, 2022
John McKowen   Date

 

23
EX1A-3 HLDRS RTS 3 ex3-2_3.htm

 

EXHIBIT 3.2.3

 

VETANOVA, INC.

 

WARRANT TO PURCHASE COMMON STOCK

SERIES III

 

This is to certify that, FOR VALUE RECEIVED, ______, or registered assigns (“Holder”) is entitled to purchase, subject to the provisions of this Warrant, from VetaNova, Inc. (the “Company”), _____ shares of the common stock of the Company (“Common Stock”). This warrant may be exercised at a purchase price of $0.05. The number of shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid for a share of Common Stock may be adjusted from time to time as hereinafter set forth. The shares of Common Stock deliverable upon such exercise, as may be adjusted from time to time, are hereinafter sometimes referred to as “Warrant Stock”; and the exercise price of a share of Common Stock in effect at any time, and as may be adjusted from time to time, is hereinafter sometimes referred to as the “Exercise Price”. This Warrant will expire on December 31, 2023 (the “Expiration Date”).

 

If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Warrant may be exercised on the next succeeding day which shall not be such a day.

 

(a) Exercise of Warrants. The exercise price of this Warrant may not be increased during the term of the Warrant, but the exercise price may be decreased at the discretion of the Company’s Board of Directors by giving each Warrant holder notice of such decrease. The exercise period for the Warrant may be extended by the Company’s Board of Directors giving notice of such extension to each Warrant holder of record.

 

This Warrant may be exercised, in whole or in part, by presentation and surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Purchase Form annexed hereto duly executed and accompanied by payment of the Exercise Price for the number of Shares of Warrant Stock specified in such form, together with all Federal and state taxes applicable upon such exercise.

 

If this Warrant should be exercised in part only, the Company, upon surrender of this Warrant for cancellation, shall execute and shall deliver a new Warrant evidencing the right of the Holder to purchase the balance of the Shares of Warrant Stock purchaseable hereunder. Upon receipt by the Company of this Warrant at the office or the agency of the Company, in proper form for exercise, the Holder shall be deemed to be the Holder of record of the Shares of Warrant Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Shares of Warrant Stock shall not then be actually delivered to the Holder.

 

(b) Reservation of Shares of Warrant Stock. The Company hereby agrees that, at all times, there shall be reserved for issuance and/or delivery upon exercise of this Warrant such number of shares of its Common Stock as shall be required for issuance or delivery upon exercise of this Warrant.

 

(c) Fractional Shares. No fractional Shares of Warrant Stock or scrip representing fractional Shares of Warrant Stock shall be issued upon the exercise of this Warrant. With respect to any fraction of a Share of Warrant Stock called for upon any exercise hereof, the Company shall pay to the Holder an amount in cash equal to such fraction multiplied by the current market value of such fractional share determined as follows:

 

1

 

 

(i) If the Company’s Common Stock is publicly traded, the average daily closing prices for 30 consecutive trading days immediately preceding the date of exercise of this Warrant. The closing price for each day shall be the last sale price regular-way or, in case no such sale takes place on such date, the average of the closing bid and asked prices regular-way, on the principal national securities exchange in which the Company’s Common Stock is listed or admitted to trading, or if it is not listed or admitted to trading on any national securities exchange, the last sale price of such Common Stock on the consolidated transaction reporting system of the National Association of Securities Dealers (“NASD”), if such last sale information is reported on such system, or if not so reported, the average of the closing bid and asked prices of such Common Stock on the National Association of Securities Dealers Automatic Quotation system (“NASDAQ”), or any comparable system, or if the Common Stock is not listed on NASDAQ, or a comparable system, the average of the closing bid and asked prices as furnished by two members of the NASD selected from time to time by the Company for that purpose.

 

(ii) If the Company’s Common Stock is not publicly traded, the current value shall be an amount, not less than the book value, determined in such reasonable manner as may be prescribed by the Board of Directors of the Company, such determination to be final and binding on the Holder.

 

(d) Exchange, Assignment or Loss of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants of different denominations entitling the Holder thereof to purchase in the aggregate the same number of Shares of Warrant Stock purchasable hereunder. This Warrant may not be sold, hypothecated, assigned, or transferred prior to the date this Warrant is first exercisable. Any assignment shall be made subject to the provisions of Section (j) by surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and with funds sufficient to pay any transfer tax; whereupon, the Company, without charge, shall execute and shall deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be cancelled.

 

This Warrant may be divided or may be combined with other Warrants which carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the names and the denominations in which new Warrants are to be issued and signed by the Holder hereof. The term “Warrant” as used herein includes any Warrants issued in substitution for or replacement of this Warrant or into which this Warrant may be divided or exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Warrant, and (in the case of loss, theft, or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and will deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone.

 

(e) Rights of the Holder. The Holder, by virtue hereof, shall not be entitled to any rights of a stockholder in the Company, either at law or in equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company except to the extent set forth herein.

 

2

 

 

(f) Anti-Dilution Provisions.

 

(i) Adjustment of Price. Anything in this Section (f) to the contrary notwithstanding, if the Company shall issue, at any time, Common Stock or convertible securities by way of dividend, forward stock split or other distribution on any stock of the Company or subdivide or combine the outstanding shares of Stock, the Exercise Price shall be proportionately decreased in the case of such issuance, forward stock split, or distribution (on the day following the date fixed for determining shareholders entitled to receive such additional shares) or proportionately increased in the case of such combination (on the date that such combination shall become effective), provided, however, should the Company cancel or fail to make such dividend or other distribution or other issuance, the Exercise Price shall be forthwith adjusted to the price which would have prevailed prior to the Company setting such record date.

 

(ii) No Adjustment for Small Amounts. Anything in this Section to the contrary notwithstanding, the Company shall not be required to give effect to any adjustment in the Exercise Price unless and until the net effect of one or more adjustments, determined as above provided, shall have required a change of the Exercise Price by at least one cent, but when the cumulative net effect of more than one adjustment so determined shall be to change the actual Exercise Price by at least one cent, such change in the Exercise Price shall thereupon be given effect.

 

(iii) Number of Shares Adjusted. Upon any adjustment of the Exercise Price, the Holder of this Warrant shall thereafter (until another such adjustment) be entitled to purchase, at the new Exercise Price, the number of Units of Warrant Stock, calculated to the nearest full shares, obtained by multiplying the number of shares of Stock initially issuable upon exercise of this Warrant by the Exercise Price in effect on the date hereof and dividing the product so obtained by the new Exercise Price.

 

(g) Officer’s Certificate. Whenever the Exercise Price shall be adjusted as required by the provisions of Section (f) hereof, the Company shall forthwith file with its Secretary or an Assistant Secretary at its principal office, and with its stock transfer agent, if any, an Officer’s Certificate showing the adjusted Exercise Price, determined as herein provided, and setting forth in reasonable detail the facts requiring such adjustment. Each such Officer’s Certificate shall be made available at all reasonable times for inspection by the Holder; and the Company, after each such adjustment, shall forthwith deliver a copy of such certificate to the Holder. Such certificate shall be conclusive as to the correctness of such adjustment.

 

(h) Notices to Warrant Holders. So long as this Warrant shall be outstanding and unexercised (i) if the Company shall pay any dividend or shall make any distribution upon the Common Stock or (ii) if the Company shall offer to the holders for subscription or purchase by them any shares of stock of any class or any other rights or (iii) if any capital reorganization of the Company; reclassification of the capital stock of the Company; consolidation or merger of the Company with or into another corporation; sale, lease or transfer of all or substantially all of the property and assets of the Company to another corporation; or voluntary or involuntary dissolution, liquidation, or winding up of the Company shall be effected, then, in any such case, the Company shall cause to be delivered to the Holder, at least ten (l0) days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend, distribution, or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance, lease, dissolution, liquidation, or winding up is to take place and the date, if any, is to be fixed, as of which the holders of record shall be entitled to exchange their Shares for securities or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation, or winding up.

 

3

 

 

(i) Reclassification, Reorganization or Merger. In case of any reclassification, or capital reorganization (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of an issuance of Common Stock by way of dividend or other distribution or of a subdivision or combination), or in case of any consolidation or merger of the Company with or into another corporation (other than a merger with a subsidiary, in which merger the Company is the continuing corporation and which does not result in any reclassification, or capital reorganization) or in case of any sale or conveyance to another corporation of the property of the Company as an entirety or substantially as an entirety, the Company shall cause effective provision to be made so that the Holder shall have the right thereafter, by exercising this Warrant, to purchase the kind and amount of shares of Stock and other securities and property receivable upon such reclassification; capital reorganization; or other consolidation, merger, sale, or conveyance as may be issued or payable with respect to or in exchange for the number of Shares of the Company theretofore purchasable upon the exercise of this Warrant had such recapitalization; capital reorganization; or other consolidation, merger, sale or conveyance not taken place. Any such provisions shall include provision for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Warrant. The foregoing provisions of this Section (i) shall similarly apply to successive reclassifications; capital reorganizations; and to successive consolidations, mergers, sales, or conveyances.

 

In the event that in any such capital reorganization or reclassification, consolidation, merger, sale or conveyance, additional shares shall be issued in exchange, conversion, substitution or payment, in whole or in part, for a security of the Company other than Stock, any such issue shall be treated as an issue of Stock covered by the provisions of subsection (f) hereof with the amount of the consideration received upon the issue thereof being determined by the Board of Directors of the Company, such determination to be final and binding on the Holder.

 

(j) Transfer to Comply with the Securities Act of l933.

 

(i) This Warrant or the Warrant Stock or any other security issued or issuable upon exercise of this Warrant may not be sold, transferred, or otherwise disposed of except to a person who, in the opinion of counsel for the Company, is a person to whom this Warrant or such Warrant Stock may legally be transferred pursuant to Section (d) hereof without registration and without the delivery of a current Prospectus under the Act with respect thereto and then only against receipt of an agreement of such person to comply with the provisions of this Section (k) with respect to any resale or other disposition of such securities.

 

(ii) The Company may cause the following legend or one similar thereto to be set forth on each certificate representing Warrant Stock or any other security issued or issuable upon exercise of this Warrant not theretofore distributed to the public or sold to underwriters for distribution to the public pursuant to Section (j) hereof, unless counsel for the Company is of the opinion as to any such certificate that such legend is unnecessary:

 

The shares represented by this Certificate have not been registered under the Securities Act of l933 (the “Act”) and are “restricted securities” as that term is defined in Rule 144 under the Act. The shares may not be offered for sale, sold, or otherwise transferred except pursuant to an effective registration statement under the Act or pursuant to an exemption from registration under the Act, the availability of which is to be established to the satisfaction of the Company.

 

(k) Applicable Law. This Warrant shall be governed by and construed in accordance with the laws of Nevada.

 

  VETANOVA, INC.
     
  By
    John McKowen, Chief Executive Officer

 

4

 

 

PURCHASE FORM

 

Dated________.  

 

The undersigned hereby irrevocable elects to exercise the within Warrant to the extent of purchasing Shares of Warrant Stock and hereby makes payment of $____________ in payment of the actual exercise price thereof.

 

INSTRUCTIONS FOR REGISTRATION OF STOCK

 

Name___________________________________________  
               (Please typewrite or print in block letters)
   
Address_________________________________________  
   
________________________________________________  
   
Signature_________________________________________

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED,_____________________________

 

hereby sell, assigns, and transfers unto:

 

Name:___________________________________________  
               (Please typewrite or print in block letters)
   
Address:_________________________________________  
   

 

the right to purchase the Common Stock represented by this Warrant to the extent of__________ shares as to which such right is exercisable and does hereby irrevocably constitute and appoint___________attorney, to transfer the same on the books of the Company with full power of substitution in the premises.

 

Signature_________________________

 

Dated:______________ ..

 

5
EX1A-3 HLDRS RTS 4 ex3-2_4.htm

 

EXHIBIT 3.2.4

 

VETANOVA, INC.

 

WARRANT TO PURCHASE COMMON STOCK

SERIES IV

 

This is to certify that, FOR VALUE RECEIVED, ______, or registered assigns (“Holder”) is entitled to purchase, subject to the provisions of this Warrant, from VetaNova, Inc. (the “Company”), _____ shares of the common stock of the Company (“Common Stock”). This warrant may be exercised at a purchase price of $0.06⅔. The number of shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid for a share of Common Stock may be adjusted from time to time as hereinafter set forth. The shares of Common Stock deliverable upon such exercise, as may be adjusted from time to time, are hereinafter sometimes referred to as “Warrant Stock”; and the exercise price of a share of Common Stock in effect at any time, and as may be adjusted from time to time, is hereinafter sometimes referred to as the “Exercise Price”. This Warrant will expire on December 31, 2023 (the “Expiration Date”).

 

If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Warrant may be exercised on the next succeeding day which shall not be such a day.

 

(a) Exercise of Warrants. The exercise price of this Warrant may not be increased during the term of the Warrant, but the exercise price may be decreased at the discretion of the Company’s Board of Directors by giving each Warrant holder notice of such decrease. The exercise period for the Warrant may be extended by the Company’s Board of Directors giving notice of such extension to each Warrant holder of record.

 

This Warrant may be exercised, in whole or in part, by presentation and surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Purchase Form annexed hereto duly executed and accompanied by payment of the Exercise Price for the number of Shares of Warrant Stock specified in such form, together with all Federal and state taxes applicable upon such exercise.

 

If this Warrant should be exercised in part only, the Company, upon surrender of this Warrant for cancellation, shall execute and shall deliver a new Warrant evidencing the right of the Holder to purchase the balance of the Shares of Warrant Stock purchaseable hereunder. Upon receipt by the Company of this Warrant at the office or the agency of the Company, in proper form for exercise, the Holder shall be deemed to be the Holder of record of the Shares of Warrant Stock issuable upon such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Shares of Warrant Stock shall not then be actually delivered to the Holder.

 

(b) Reservation of Shares of Warrant Stock. The Company hereby agrees that, at all times, there shall be reserved for issuance and/or delivery upon exercise of this Warrant such number of shares of its Common Stock as shall be required for issuance or delivery upon exercise of this Warrant.

 

1

 

 

(c) Fractional Shares. No fractional Shares of Warrant Stock or scrip representing fractional Shares of Warrant Stock shall be issued upon the exercise of this Warrant. With respect to any fraction of a Share of Warrant Stock called for upon any exercise hereof, the Company shall pay to the Holder an amount in cash equal to such fraction multiplied by the current market value of such fractional share determined as follows:

 

(i) If the Company’s Common Stock is publicly traded, the average daily closing prices for 30 consecutive trading days immediately preceding the date of exercise of this Warrant. The closing price for each day shall be the last sale price regular-way or, in case no such sale takes place on such date, the average of the closing bid and asked prices regular-way, on the principal national securities exchange in which the Company’s Common Stock is listed or admitted to trading, or if it is not listed or admitted to trading on any national securities exchange, the last sale price of such Common Stock on the consolidated transaction reporting system of the National Association of Securities Dealers (“NASD”), if such last sale information is reported on such system, or if not so reported, the average of the closing bid and asked prices of such Common Stock on the National Association of Securities Dealers Automatic Quotation system (“NASDAQ”), or any comparable system, or if the Common Stock is not listed on NASDAQ, or a comparable system, the average of the closing bid and asked prices as furnished by two members of the NASD selected from time to time by the Company for that purpose.

 

(ii) If the Company’s Common Stock is not publicly traded, the current value shall be an amount, not less than the book value, determined in such reasonable manner as may be prescribed by the Board of Directors of the Company, such determination to be final and binding on the Holder.

 

(e) Exchange, Assignment or Loss of Warrant. This Warrant is exchangeable, without expense, at the option of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants of different denominations entitling the Holder thereof to purchase in the aggregate the same number of Shares of Warrant Stock purchasable hereunder. This Warrant may not be sold, hypothecated, assigned, or transferred prior to the date this Warrant is first exercisable. Any assignment shall be made subject to the provisions of Section (j) by surrender of this Warrant to the Company or at the office of its stock transfer agent, if any, with the Assignment Form annexed hereto duly executed and with funds sufficient to pay any transfer tax; whereupon, the Company, without charge, shall execute and shall deliver a new Warrant in the name of the assignee named in such instrument of assignment and this Warrant shall promptly be cancelled.

 

This Warrant may be divided or may be combined with other Warrants which carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if any, together with a written notice specifying the names and the denominations in which new Warrants are to be issued and signed by the Holder hereof. The term “Warrant” as used herein includes any Warrants issued in substitution for or replacement of this Warrant or into which this Warrant may be divided or exchanged. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Warrant, and (in the case of loss, theft, or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if mutilated, the Company will execute and will deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone.

 

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(e) Rights of the Holder. The Holder, by virtue hereof, shall not be entitled to any rights of a stockholder in the Company, either at law or in equity, and the rights of the Holder are limited to those expressed in the Warrant and are not enforceable against the Company except to the extent set forth herein.

 

(f) Anti-Dilution Provisions.

 

(i) Adjustment of Price. Anything in this Section (f) to the contrary notwithstanding, if the Company shall issue, at any time, Common Stock or convertible securities by way of dividend, forward stock split or other distribution on any stock of the Company or subdivide or combine the outstanding shares of Stock, the Exercise Price shall be proportionately decreased in the case of such issuance, forward stock split, or distribution (on the day following the date fixed for determining shareholders entitled to receive such additional shares) or proportionately increased in the case of such combination (on the date that such combination shall become effective), provided, however, should the Company cancel or fail to make such dividend or other distribution or other issuance, the Exercise Price shall be forthwith adjusted to the price which would have prevailed prior to the Company setting such record date.

 

(ii) No Adjustment for Small Amounts. Anything in this Section to the contrary notwithstanding, the Company shall not be required to give effect to any adjustment in the Exercise Price unless and until the net effect of one or more adjustments, determined as above provided, shall have required a change of the Exercise Price by at least one cent, but when the cumulative net effect of more than one adjustment so determined shall be to change the actual Exercise Price by at least one cent, such change in the Exercise Price shall thereupon be given effect.

 

(iii) Number of Shares Adjusted. Upon any adjustment of the Exercise Price, the Holder of this Warrant shall thereafter (until another such adjustment) be entitled to purchase, at the new Exercise Price, the number of Units of Warrant Stock, calculated to the nearest full shares, obtained by multiplying the number of shares of Stock initially issuable upon exercise of this Warrant by the Exercise Price in effect on the date hereof and dividing the product so obtained by the new Exercise Price.

 

(g) Officer’s Certificate. Whenever the Exercise Price shall be adjusted as required by the provisions of Section (f) hereof, the Company shall forthwith file with its Secretary or an Assistant Secretary at its principal office, and with its stock transfer agent, if any, an Officer’s Certificate showing the adjusted Exercise Price, determined as herein provided, and setting forth in reasonable detail the facts requiring such adjustment. Each such Officer’s Certificate shall be made available at all reasonable times for inspection by the Holder; and the Company, after each such adjustment, shall forthwith deliver a copy of such certificate to the Holder. Such certificate shall be conclusive as to the correctness of such adjustment.

 

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(h) Notices to Warrant Holders. So long as this Warrant shall be outstanding and unexercised (i) if the Company shall pay any dividend or shall make any distribution upon the Common Stock or (ii) if the Company shall offer to the holders for subscription or purchase by them any shares of stock of any class or any other rights or (iii) if any capital reorganization of the Company; reclassification of the capital stock of the Company; consolidation or merger of the Company with or into another corporation; sale, lease or transfer of all or substantially all of the property and assets of the Company to another corporation; or voluntary or involuntary dissolution, liquidation, or winding up of the Company shall be effected, then, in any such case, the Company shall cause to be delivered to the Holder, at least ten (l0) days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend, distribution, or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance, lease, dissolution, liquidation, or winding up is to take place and the date, if any, is to be fixed, as of which the holders of record shall be entitled to exchange their Shares for securities or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation, or winding up.

 

(i) Reclassification, Reorganization or Merger. In case of any reclassification, or capital reorganization (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of an issuance of Common Stock by way of dividend or other distribution or of a subdivision or combination), or in case of any consolidation or merger of the Company with or into another corporation (other than a merger with a subsidiary, in which merger the Company is the continuing corporation and which does not result in any reclassification, or capital reorganization) or in case of any sale or conveyance to another corporation of the property of the Company as an entirety or substantially as an entirety, the Company shall cause effective provision to be made so that the Holder shall have the right thereafter, by exercising this Warrant, to purchase the kind and amount of shares of Stock and other securities and property receivable upon such reclassification; capital reorganization; or other consolidation, merger, sale, or conveyance as may be issued or payable with respect to or in exchange for the number of Shares of the Company theretofore purchasable upon the exercise of this Warrant had such recapitalization; capital reorganization; or other consolidation, merger, sale or conveyance not taken place. Any such provisions shall include provision for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Warrant. The foregoing provisions of this Section (i) shall similarly apply to successive reclassifications; capital reorganizations; and to successive consolidations, mergers, sales, or conveyances.

 

In the event that in any such capital reorganization or reclassification, consolidation, merger, sale or conveyance, additional shares shall be issued in exchange, conversion, substitution or payment, in whole or in part, for a security of the Company other than Stock, any such issue shall be treated as an issue of Stock covered by the provisions of subsection (f) hereof with the amount of the consideration received upon the issue thereof being determined by the Board of Directors of the Company, such determination to be final and binding on the Holder.

 

(j) Transfer to Comply with the Securities Act of l933.

 

(i) This Warrant or the Warrant Stock or any other security issued or issuable upon exercise of this Warrant may not be sold, transferred, or otherwise disposed of except to a person who, in the opinion of counsel for the Company, is a person to whom this Warrant or such Warrant Stock may legally be transferred pursuant to Section (d) hereof without registration and without the delivery of a current Prospectus under the Act with respect thereto and then only against receipt of an agreement of such person to comply with the provisions of this Section (k) with respect to any resale or other disposition of such securities.

 

(ii) The Company may cause the following legend or one similar thereto to be set forth on each certificate representing Warrant Stock or any other security issued or issuable upon exercise of this Warrant not theretofore distributed to the public or sold to underwriters for distribution to the public pursuant to Section (j) hereof, unless counsel for the Company is of the opinion as to any such certificate that such legend is unnecessary:

 

The shares represented by this Certificate have not been registered under the Securities Act of l933 (the “Act”) and are “restricted securities” as that term is defined in Rule 144 under the Act. The shares may not be offered for sale, sold, or otherwise transferred except pursuant to an effective registration statement under the Act or pursuant to an exemption from registration under the Act, the availability of which is to be established to the satisfaction of the Company.

 

(k) Applicable Law. This Warrant shall be governed by and construed in accordance with the laws of Nevada.

 

  VETANOVA, INC.
     
  By
    John McKowen, Chief Executive Officer

 

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PURCHASE FORM

 

Dated________.  

 

The undersigned hereby irrevocable elects to exercise the within Warrant to the extent of purchasing Shares of Warrant Stock and hereby makes payment of $____________ in payment of the actual exercise price thereof.

 

_______

 

INSTRUCTIONS FOR REGISTRATION OF STOCK

 

Name___________________________________________  
               (Please typewrite or print in block letters)
   
Address_________________________________________  
   
________________________________________________  
   
Signature_________________________________________

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED,____________________________

 

hereby sell, assigns, and transfers unto:

 

Name:___________________________________________  
               (Please typewrite or print in block letters)
   
Address:_________________________________________  

 

the right to purchase the Common Stock represented by this Warrant to the extent of shares as to which such right is exercisable and does hereby irrevocably constitute and appoint attorney, to transfer the same on the books of the Company with full power of substitution in the premises.

 

Signature____________________

 

Dated:__________.

 

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EX1A-4 SUBS AGMT 5 ex4.htm

 

EXHIBIT 4

 

SUBSCRIPTION AGREEMENT

 

VetaNova, Inc.

 

NOTICE TO INVESTORS

 

The securities of VetaNova, Inc., a Nevada 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(f) 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.

 

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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.

 

1. Subscription.

 

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

 

(b) Investor understands that the Offered Securities are being offered pursuant to the Regulation A Offering Circular dated _____________, 2022, and its exhibits (collectively, the “Offering Circular”), as filed with the SEC. By subscribing for the Offered Securities, 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 Offered Securities.

 

(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 of the Offering, 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’ 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 Offered Securities in the manner set forth in Exhibit A hereof. Investor acknowledges that, in order to subscribe for Offered Securities, Investor must comply fully with the purchase procedure requirements set forth in Exhibit A hereof.

 

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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 Nevada. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, the Offered Securities 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 Offered Securities in accordance with this Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Offered Securities, 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.

 

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.

 

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(b) Company Offering Circular; Company Information. Investor acknowledges the public availability of the Offering Circular which can be viewed on the SEC Edgar Database, 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 Securities, 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 Securities, and to make an informed decision relating thereto. Investor has evaluated the risks of an investment in the Offered Securities, 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 Securities.

 

(d) No Registration. Investor understands that the Offered Securities 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 Securities in the Offering.

 

Investor further understands that the Offered Securities 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, since the Offered Securities are “covered securities” under the National Securities Market Improvement Act of 1996.

 

Investor covenants not to sell, transfer or otherwise dispose of any Offered Securities, unless such Offered Securities 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 no ready public market for the Offered Securities and that there is no guarantee that a market for their resale will ever exist. Investor must, therefore, bear the economic risk of the investment in the Offered Securities indefinitely and Investor acknowledges that Investor is able to bear the economic risk of losing Investor’s entire investment in the Offered Securities.

 

(f) Accredited Investor Status or Investment Limits. Investor represents that either:

 

(1)Investor is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act; or

 

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(2)that the Purchase Price, together with any other amounts previously used to purchase Offered Securities in the Offering, does not exceed ten percent (10%) of the greater of Investor’s annual income or net worth (or, in the case where Investor is a non-natural person, Investor’s revenue or net assets for such Investor’s most recently completed fiscal year end).

 

Investor represents that, to the extent Investor has any questions with respect to Investor’s status as an accredited investor, or the application of the investment limits, 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, Shares, 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 Securities, Investor will require the transferee of any such Offered Securities to agree to provide such information to the Company as a condition of such transfer.

 

(h) Valuation; Arbitrary Determination of Purchase Price by the Company. Investor acknowledges that the Purchase Price of the Offered Securities 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 Securities or any use of this Subscription Agreement, including, without limitation, (1) the legal requirements within Investor’s jurisdiction for the purchase of the Offered Securities, (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 Offered Securities. Investor’s subscription and payment for and continued beneficial ownership of the Offered Securities will not violate any applicable securities or other laws of Investor’s jurisdiction.

 

(k) Fiduciary Capacity. If Investor is purchasing the Offered Securities 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.

 

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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.

 

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 Delaware, without regard to the principles of conflicts of law thereof. 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 to the Company at: john@vtanva.com; Attention: John McKowen or to the 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. 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 john@vtanva.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 Delaware 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.

 

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9. 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 Offered Securities (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.

 

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

 

The Offering Materials do not constitute an offer or solicitation in any state or jurisdiction in which the Offered Securities 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 Offered Securities. Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the purchase of the Offered Securities shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

 

7

 

 

The undersigned has (have) executed this Subscription Agreement on this __ day of ___, 2022 at __________.

 

SUBSCRIBER

 

Signature

 

(Print name of Subscriber)

 

(Street Address)

 

(City, State, and Zip)

 

(Social Security or Tax Identification Number)

 

Number of Units:

 

Dollar Amount of Units ($____ per Unit) $

 

The foregoing subscription is hereby accepted on behalf of VetaNova, Inc., this ______ day of _________________, 2022.

 

  VETANOVA, INC.
     
  By:
     
  Name: John McKowen
     
  Title:

Chief Executive Officer

 

8

 

 

EXHIBIT A

 

Payment to be made by:

 

Check
Wire transfer to:

 

  ___________________
  ___________________
  ___________________
  ___________________

 

ACH payment to account #____________
   
Credit card

 

  Name on credit card: ____________________________  
  Card No. ____________________________  
  Expiration Date: ____________________________  
  Security Code: ____________________________  

 

9

 

EX1A-6 MAT CTRCT 6 ex6-14.htm

 

EXHIBIT 6.14

 

 

Broker-Dealer Agreement

 

This agreement (together with exhibits and schedules, the “Agreement”) is entered into by and between VetaNova Inc (“Client”), a Nevada Corporation, and Dalmore Group, LLC., a New York Limited Liability Company (“Dalmore”). Client and Dalmore agree to be bound by the terms of this Agreement, effective as of February 7, 2022 (the “Effective Date”):

 

WHEREAS, Dalmore is a registered broker-dealer providing services in the equity and debt securities market, including offerings conducted via exemptions from registration with the Securities Exchange Commission (“SEC”);

 

WHEREAS, Client is offering securities directly to the public in an offering exempt from registration under Regulation A (the “Offering”); and

 

WHEREAS, Client recognizes the benefit of having Dalmore as a broker dealer of record and service provider for investors who participate in the Offering (collectively, the “Investors”).

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1. Appointment, Term, and Termination.

 

a.Services. Client hereby engages Dalmore to perform the services listed on Exhibit A attached hereto and made a part hereof, in connection with the Offering (the “Services”). Unless otherwise agreed to in writing by the parties, the services to be performed by Dalmore are limited to those Services.
   
b.Term. The Agreement will commence on the Effective Date and will remain in effect for a period of twelve (12) months and will renew automatically for successive renewal terms of twelve (12) months each unless any party provides notice to the other party of non-renewal at least sixty (60) days prior to the expiration of the current term. If Client defaults in performing the obligations under this Agreement, the Agreement may be terminated (i) upon thirty (30) days written notice if Client fails to perform or observe any material term, covenant or condition to be performed or observed by it under this Agreement and such failure continues to be unremedied, (ii) upon written notice, if any material representation or warranty made by Client proves to be incorrect at any time in any material respect, or (iii) upon thirty (30) days’ written notice if Client or Dalmore commences a voluntary proceeding seeking liquidation, reorganization or other relief, or is adjudged bankrupt or insolvent or has entered against it a final and unappealable order for relief, under any bankruptcy, insolvency or other similar law, or either party executes and delivers a general assignment for the benefit of its creditors.

 

1

 

 

 

2. Compensation. As compensation for the Services, Client shall pay to Dalmore the following fees:

 

a.a fee equal to two percent (2%) on the aggregate amount raised by the Client (the “Offering Fee”). The Offering Fee shall only be payable after the Financial Industry Regulatory Authority (“FINRA”) department of Corporate Finance issues a no objection letter (the “No Objection Letter”) for the Offering. Client authorizes Dalmore to deduct the Offering Fee directly from the Client’s third-party escrow or payment account.
   
b.a one-time expense fee of five thousand ($5,000) for out-of-pocket expenses incurred by Dalmore (the “Expense Fee”). The Expense Fee is due and payable upon execution of this Agreement. The Expense Fee shall cover expenses anticipated to be incurred by the firm such as FINRA filings and any other expenses incurred by Dalmore in connection with the Offering. Notwithstanding the foregoing, Dalmore will refund to the Client any portion of the Expense Fee that remains unused.
   
c.A one-time consulting fee of twenty thousand ($20,000) (the “Consulting Fee”) which is due and payable within five (5) days of receipt of the No Objection Letter. In the event the Consulting Fee is not paid by the first closing, Client authorizes Dalmore to deduct the Consulting Fee directly from the Client’s third-party escrow or payment account upon the first closing.

 

3. Regulatory Compliance

 

a.Client and all its third-party providers shall at all times (i) maintain all required registrations and licenses, including foreign qualification, if necessary; (iii) pay all related fees and expenses (including all fees associated with FINRA filings), in each case that are necessary or appropriate to perform their respective obligations under this Agreement, and (iii) comply in all respects with all applicable laws and regulations.
   
  FINRA Corporate Filing Fee for this $10,000,000, best efforts offering will be $2,000 and will be a pass-through fee payable to Dalmore, from the Client, who will then forward it to FINRA as payment for the filing. This fee is due and payable prior to any submission by Dalmore to FINRA.
     
b.Client and Dalmore will each be responsible for supervising the activities and training of their respective sales employees, as well as all of their other respective employees in the performance of functions specifically allocated to them pursuant to the terms of this Agreement.
   
c.Client and Dalmore agree to promptly notify the other concerning any material communications from or with any Governmental Authority or Self Regulatory Organization with respect to this Agreement or the performance of its obligations unless such notification is expressly prohibited by the applicable Governmental Authority.

 

2

 

 

 

 

4. Role of Dalmore. Client acknowledges and agrees that Dalmore’s sole responsibilities in connection with an Offering are set forth on Exhibit A, and that Dalmore is strictly acting in an administrative and compliance capacity as the broker dealer of record, and is not being engaged by the Client to act as an underwriter or placement agent in connection with the Offering. Dalmore will use commercially reasonable efforts to perform the Services. Dalmore (i) makes no representations with respect to the quality of any investment opportunity; (ii) does not guarantee the performance of any Investor; (iii) is not soliciting or approaching investors in connection with the Offering, (iv) is not an investment adviser, does not provide investment advice and does not recommend securities transactions, (v) in performing the Services is not making any recommendation as to the appropriateness, suitability, legality, validity or profitability of the Offering, and (vi) does not take any responsibility for any documentation created and used in connection with the Offering.

 

5. Indemnification. Client shall indemnify and hold Dalmore, its affiliates and their representatives and agents harmless from, any and all actual or direct losses, liabilities, judgments, arbitration awards, settlements, damages and costs (collectively, “Losses”), resulting from or arising out of any third party suits, actions, claims, demands or similar proceedings (collectively, “Proceedings”) to the extent they are based upon (i) a breach of this Agreement by Client, (ii) the wrongful acts or omissions of Client, or (iii) the Offering.

 

6. Confidentiality. For purposes of this Agreement, the term “Confidential Information” means all confidential and proprietary information of a party, including but not limited to (i) financial information, (ii) business and marketing plans, (iii) the names of employees and owners, (iv) the names and other personally-identifiable information of users of the third-party provided online fundraising platform, (v) security codes, and (vi) all documentation provided by Client or Investor, but shall not include (i) information already known or independently developed by the recipient without the use of any confidential and proprietary information, or (ii) information known to the public through no wrongful act of the recipient. During the term of this Agreement and at all times thereafter, neither party shall disclose Confidential Information of the other party or use such Confidential Information for any purpose without the prior written consent of such other party. Without limiting the preceding sentence, each party shall use at least the same degree of care in safeguarding the other party’s Confidential Information as it uses to safeguard its own Confidential Information. Notwithstanding the foregoing, a party may disclose Confidential Information (i) if required to do by order of a court of competent jurisdiction, provided that such party shall notify the other party in writing promptly upon receipt of knowledge of such order so that such other party may attempt to prevent such disclosure or seek a protective order; or (ii) to any applicable governmental authority as required by applicable law. Nothing contained herein shall be construed to prohibit the SEC, FINRA, or other government official or entities from obtaining, reviewing, and auditing any information, records, or data. Client acknowledges that regulatory record-keeping requirements, as well as securities industry best practices, require Dalmore to maintain copies of practically all data, including communications and materials, regardless of any termination of this Agreement.

 

3

 

 

 

 

7. Notices. Any notices required by this Agreement shall be in writing and shall be addressed, and delivered or mailed postage prepaid, or faxed or emailed to the other parties hereto at such addresses as such other parties may designate from time to time for the receipt of such notices. Until further notice, the address of each party to this Agreement for this purpose shall be the following:

 

If to the Client:

 

VetaNova Inc

335 A Josephine St.

Denver, CO 80206

Attn: John R. McKowen, CEO

Tel: 303-248-6883

Email: john@vtanva.com

 

If to Dalmore:

 

Dalmore Group, LLC 525 Green Place

Woodmere, NY 11598 Attn: Etan Butler, Chairman

Tel: 917-319-3000

Email: etan@dalmorefg.com

 

8. Miscellaneous.

 

a.ANY DISPUTE OR CONTROVERSY BETWEEN THE CLIENT AND PROVIDER RELATING TO OR ARISING OUT OF THIS AGREEMENT WILL BE SETTLED BY ARBITRATION BEFORE AND UNDER THE RULES OF THE ARBITRATION COMMITIEE OF FINRA.
   
b.This Agreement is non-exclusive and shall not be construed to prevent either party from engaging in any other business activities.
   
c.This Agreement will be binding upon all successors, assigns or transferees of Client. No assignment of this Agreement by either party will be valid unless the other party consents to such an assignment in writing. Either party may freely assign this Agreement to any person or entity that acquires all or substantially all of its business or assets. Any assignment by the either party to any subsidiary that it may create or to a company affiliated with or controlled directly or indirectly by it will be deemed valid and enforceable in the absence of any consent from the other party.

 

4

 

 

 

 

d.Neither party will, without prior written approval of the other party, reference such other party in any advertisement, website, newspaper, publication, periodical or any other communication, and shall keep the contents of this Agreement confidential in accordance with the provisions set forth herein.
   
e.THE CONSTRUCTION AND EFFECT OF EVERY PROVISION OF THIS AGREEMENT, THE RIGHTS OF THE PARTIES UNDER THIS

 

AGREEMENT AND ANY QUESTIONS ARISING OUT OF THE AGREEMENT, WILL BE SUBJECT TO THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES TO THE EXTENT SUCH APPLICATION WOULD CAUSE THE LAWS OF A DIFFERENT STATE TO APPLY. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party

 

f.If any provision or condition of this Agreement is held to be invalid or unenforceable by any court, or regulatory or self-regulatory agency or body, the validity of the remaining provisions and conditions will not be affected and this Agreement will be carried out as if any such invalid or unenforceable provision or condition were not included in the Agreement.
   
g.This Agreement sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior agreement relating to the subject matter herein. The Agreement may not be modified or amended except by written agreement.
   
h.This Agreement may be executed in multiple counterparts and by facsimile or electronic means, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE(S)]

 

5

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

  CLIENT: VetaNova Inc
     
  By /s/ John R McKowen
  Name: John R. McKowen
  Its: CEO
     
  Dalmore Group, LLC:
     
  By /s/ Etan Butler
  Name: Etan Butler
  Its: Chairman

 

6

 

 

 

Exhibit A

 

Services:

 

i.Review Investor information, including KYC (Know Your Customer) data, AML (Anti-Money Laundering), OFAC compliance background checks (it being understood that KYC and AML processes may be provided by a qualified third party);
   
ii.Review each Investor’s subscription agreement to confirm such Investor’s participation in the Offering, and provide confirmation of completion of such subscription documents to Client;
   
iii.Contact and/or notify the issuer, if needed, to gather additional information or clarification on an Investor;
   
iv.

Keep Investor information and data confidential and not disclose to any third-party except as required by regulatory agencies or in our performance under this Agreement (e.g. as needed for AML and background checks);

 

v.Coordinate with third party providers to ensure adequate review and compliance;
   
vi.Provide, or coordinate the provision by a third party, of an “invest now” payment processing mechanism, including connection to a qualified escrow agent.
   
vii.Act as the Company’s broker/ dealer in all jurisdictions requiring broker/ dealer coverage.

 

 

 

EX1A-9 ACCT LTR 7 ex9-1.htm

 

EXHIBIT 9.1

 

CONSENT OF ATTORNEYS

 

Reference is made to the Offering Statement of VetaNova, Inc., whereby the Company proposes to sell shares of its common stock and warrants. Reference is also made to Exhibit 12 included as part of this Offering Statement relating to the validity of the securities proposed to be sold.

 

We hereby consent to the use of our opinion concerning the validity of the securities proposed to be issued and sold.

 

Very truly yours,

 

HART & HART, LLC

 

/s/ William T. Hart

 

Denver, Colorado

April 27, 2022

 

 

 

EX1A-9 ACCT LTR 8 ex9-2.htm

 

EXHIBIT 9.2

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

We hereby consent to the use of our report dated March 29, 2022 relating to the financial statements of VETANOVA, INC, as of December 31, 2021 and 2020 and to all references to our firm included in this notification on Form 1-A.

 

/s/ BF Borgers CPA PC

 

Certified Public Accountants

Lakewood, CO

April 26, 2022

 

 

 

EX1A-12 OPN CNSL 9 ex12.htm

 

EXHIBIT 12

 

HART & HART, LLC

ATTORNEYS AT LAW

1624 Washington Street

Denver, CO 80203

 ________

  Email: harttrinen@aol.com
  Facsimile: (303) 839-5414
  (303) 839-0061

 

April 27, 2022

 

VetaNova, Inc.

335 A Josephine St.

Denver, CO 80206

 

By means of the Company’s Offering Circular, the Company is offering:

 

up to 300,000,000 shares of its common stock;
   
Series III warrants to purchase an additional 300,000,000 shares of its common stock;
   
Series IV warrants to purchase an additional 300,000,000 shares of its common stock; and
   
Shares of common stock issuable upon the exercise of the Series III and Series IV warrants.

 

We have examined the Certificate of Incorporation, the Bylaws and the minutes of the Board of Directors of the Company, the applicable laws of the State of Nevada, and a copy of the Company’s Offering Statement and Offering Circular. Based upon the foregoing, in our opinion:

 

the shares of common stock mentioned above, when sold in the manner described in the Company’s Offering Statement and Offering Circular, will be legally issued and these shares will represent fully paid and non-assessable shares of the Company’s common stock;
   
the warrants, when sold in the manner described in the Company’s Offering Statement and Offering Circular, will be legally issued, fully paid and non-assessable and will be the binding obligations of the Company in accordance with the terms thereof; and
   
the shares of common stock issuable upon the exercise of the warrants, when sold in the manner described in the Company’s Offering Statement and Offering Circular, will be legally issued and will represent fully paid and non-assessable shares of the Company’s common stock.

 

 

Very truly yours,
   
  HART & HART, LLC
   
  /s/ William T. Hart
  William T. Hart

 

 

 

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