Note 8 Capital Stock
On October 3, 2011, the Company issued 17,857,150 (post split) common shares to pursuant to a share subscription agreement at $0.045 per share for total proceeds of $45,000 (see Note 10).
On November 11, 2011, the former President of the Company and several shareholders entered into a stock cancellation agreement with the Company whereby 14,714,292 (post split) and 8,303,575 (post split), common shares, respectively, were returned to treasury and cancelled. Due to the fact that the shares under this agreement have been cancelled without the exchange of consideration to reduce the number of shares outstanding, the Company considered the change in capital structure from the cancellation agreement a reverse stock split. In accordance with SAB Topic 4-C, the Company recorded the cancellation retrospectively as a reduction to the par value of common stock with a corresponding increase to additional paid-in capital.