Attached files

file filename
EX-10.1 - EXHIBIT 10.1 - San Lotus Holding Incexhibit101.htm
EX-10.7 - EXHIBIT 10.7 - San Lotus Holding Incexhibit107.htm
EX-10.3 - EXHIBIT 10.3 - San Lotus Holding Incexhibit103.htm
EX-10.9 - EXHIBIT 10.9 - San Lotus Holding Incexhibit109.htm
EX-10.8 - EXHIBIT 10.8 - San Lotus Holding Incexhibit108.htm
EX-10.6 - EXHIBIT 10.6 - San Lotus Holding Incexhibit106.htm
EX-10.4 - EXHIBIT 10.4 - San Lotus Holding Incexhibit104.htm
EX-10.5 - EXHIBIT 10.5 - San Lotus Holding Incexhibit105.htm
EX-10.10 - EXHIBIT 10.10 - San Lotus Holding Incexhibit1010.htm
EX-10.11 - EXHIBIT 10.11 - San Lotus Holding Incexhibit1011.htm
EX-10.12 - EXHIBIT 10.12 - San Lotus Holding Incexhibit1012.htm
EX-10.2 - EXHIBIT 10.2 - San Lotus Holding Incexhibit102_real.htm
 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported):  August 11, 2014

 

 

 

 

SAN LOTUS HOLDING INC.

 

 

 

 

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

Nevada

 

333-176694

 

45-2960145

(State or other jurisdiction of

 

(Commission File Number)

 

(IRS Employer

incorporation or organization)

 

 

 

Identification No.)

 

 

 

 

 

 

 

3F B302C, No. 185 Kewang Road

 

 

 

 

Longtan Township, Taoyuan County 325

Taiwan (R.O.C.)

 

 

 

 

(Address of principal executive offices)

 

(Zip code)

 

 

 

 

 

Registrant's telephone number, including area code:

 

+866-3-4072339

 

 

 

 

 

 

 

N/A

 

 

 

 

(Former name or former address, if changed since last report)

 

 

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

1 

 


 

   

 

   

Item 1.01          Entry Into A Material Definitive Agreement.

   

Transaction 1(the transaction among Green Forest Management Consulting Inc.; Lo, Fun-Ming; Yu, Chien-Yang; and Mao Ren International Inc.)

   

On August 11, 2014, our wholly-owned subsidiary, Green Forest Management Consulting Inc., a Taiwan (R.O.C.) corporation ("Green Forest"), entered into a land purchase agreement (the "LPA-1") with Lo, Fun-Ming; Yu, Chien-Yang; and Mao Ren International Inc. ( the "Sellers") to acquire 1,124,935 square meters of land in Dataoping Section of Zaoqiao Township, Miaoli County, Taiwan (R.O.C.) and 160,779 square meters of land in Laotianliao Section of Touwu Township, Miaoli County, Taiwan (R.O.C.), all of which is 1,285,713.89 square meters (the "Land-1").

   

                Green Forest purchased the Land-1 for TWD$3,369,303,693   (US$111,581,126.3) (the "Purchase Price-1"). The Purchase Price-1 was paid for through Green Forest's issuance of a promissory note (the "Promissory Note-1") payable to the Seller. Through an agreement of assignment, assumption and release (the "Assumption-1"), which we entered into with the Seller and Green Forest on August 11, 2014, we assumed the debt Green Forest owed under the Promissory Note-1, thus relieving Green Forest of its obligations thereunder.

   

                On August 11, 2014, we entered into a stock purchase agreement for the issuance of 397,935,544  shares of our common stock, par value $0.1 per share (the "Shares-1"), at a purchase price of $0.2804 per share, to the Sellers and their designees pursuant to stock purchase agreements, dated August 11, 2014 (the "Subscription Agreements-1"). The issuance of the Shares was exempt from registration pursuant to either Regulation S or Regulation D, as stated in the respective Subscription Agreements-1, depending on the location and intent of the purchaser. The Shares-1 were issued at the instruction of the Sellers and in full satisfaction of the debt we owed pursuant to the Assumption-1.

   

Transaction  2( the transaction between Green Forest Management Consulting Inc. and Chen, Kuan-Yu)

   

On August 11, 2014, our wholly-owned subsidiary, Green Forest Management Consulting Inc., a Taiwan (R.O.C.) corporation ("Green Forest"), entered into a land purchase agreement (the "LPA-2") with Chen, Kuan-Yu ( the "Seller") to acquire 453,294.86 square meters of land in Dataoping Section of Zaoqiao Township, Miaoli County, Taiwan (R.O.C.) and 10,120 square meters of land in Laotianliao Section of Touwu Township, Miaoli County, Taiwan (R.O.C.), all of which is 463,414.86 square meters (the "Land-2").

   

                Green Forest purchased the Land-2 for TWD$1,214,398,015   (US$40,957,774.7) (the "Purchase Price-2"). The Purchase Price was paid for through Green Forest's issuance of a promissory note (the "Promissory Note-2") payable to the Seller. Through an agreement of assignment, assumption and release (the "Assumption-2"), which we entered into with the Seller and Green Forest on August 11, 2014, we assumed the debt Green Forest owed under the Promissory Note-2, thus relieving Green Forest of its obligations thereunder.

   

                On August 11, 2014, we entered into a stock purchase agreement for the issuance of 202,660,931 shares of our common stock, par value $0.1 per share (the "Shares-2"), at a purchase price of $0.2021 per share, to the Sellers and their designees pursuant to stock purchase agreements, dated August 11, 2014 (the "Subscription Agreements-2"). The issuance of the Shares was exempt from registration pursuant to either Regulation S or Regulation D, as stated in the respective Subscription Agreements-2, depending on the location and intent of the purchaser. The Shares-2 were issued at the instruction of the Sellers and in full satisfaction of the debt we owed pursuant to the Assumption-2.

   

   

   

   

   

   

 

 2  

   


 
 

 

 

The following tables detail our officers and directors and their relationship to Green Forest, if any.

 

 

Name of Natural Person Affiliate

 

San Lotus Holding Inc.

 

 

Green Forest Management Consulting Inc.

 

1

Chen, Li-Hsing

 

President, Chairman and Director

 

-

2

ChenTseng, Chih-Ying

 

Chief Executive Officer

 

-

3

Lin, Mu Chen

 

Chief Financial Officer

 

-

4

Yu, Chien-Yang

 

Vice President and Director

 

Director

5

Chen, Kuan-Yu

 

Secretary and Director

 

Director

6

Lo, Fun-Ming

 

Director

 

-

7

Kwong, Edwin

 

Director

 

-

8

Wu, Tsung Lun

 

Director

 

-

9

Chang, Kai

 

Director

 

-

10

Yueh, Jung-Lin

 

Director

 

-

11

Lai, Chia Ling

 

Director

 

-

12

Chiang, Yu-Chang

 

-

 

Director / Chairman

 

 

 

 

               

 

              Finally, the following table details how the Shares were distributed to the above officers, directors and affiliates in the inTransaction 1 and Transaction 2 above.

.

 

Name of Natural Person Affiliate

 

 

A. Beneficial Ownership in San Lotus Shares Received (A = B x C)

Holding Entity 

 

B. Beneficial Ownership in Holding Entity

 

C. San Lotus Shares Received in Holding Entity

 

Chen, Li-Hsing

16,000,006

R&G INTERNATIONAL CO., LTD

50.00%

32,000,012

2,562,849

Self

-

-

ChenTseng, Chih-Ying

16,000,006

R&G INTERNATIONAL CO., LTD

50.00%

32,000,012

1,777,783

Self

-

-

Lin, Mu Chen

2,948,614

Tartars Ltd

100.00%

2,948,614

Yu, Chien-Yang

108,780,562

Ocean Reserve Ltd.

100.00%

108,780,562

5,061,466

Rocky Yu Ltd

100.00%

5,061,466

5,061,466

Jackson Yu Ltd

100.00%

5,061,466

5,061,466

Dennis Yu Ltd

100.00%

5,061,466

400,000

Golden Hen Holding Inc

100.00%

400,000

400,000

A Band Inc

100.00%

400,000

400,000

A Benbow Holding

100.00%

400,000

4,333,333

Animedia Holding Inc

100.00%

4,333,333

1,000,000

AHI Adaptation Inc

100.00%

1,000,000

1,000,000

AHI Advertising Inc

100.00%

1,000,000

1,666,667

AHI Animation Inc

100.00%

1,666,667

1,000,000

AHI Blueprint Inc

100.00%

1,000,000

1,666,667

AHI Broadcasting Inc

100.00%

1,666,667

1,000,000

AHI Diction Inc

100.00%

1,000,000

1,000,000

AHI Illustration Inc

100.00%

1,000,000

1,666,667

AHI Library Inc

100.00%

1,666,667

4,000,000

AHI Marketing Inc

100.00%

4,000,000

1,000,000

AHI Peripherals Inc

100.00%

1,000,000

1,000,000

AHI Photography Inc

100.00%

1,000,000

1,000,000

AHI Pictures Inc

100.00%

1,000,000

1,666,667

AHI Post Production Inc

100.00%

1,666,667

1,000,000

AHI Publishing Inc

100.00%

1,000,000

5,000,000

AHI Sound Inc

100.00%

5,000,000

1,000,000

AHI Talent Agency Inc

100.00%

1,000,000

1,000,000

AHI Voice Inc

100.00%

1,000,000

2,669,666

Animedia TV Inc

80.09%

3,333,333

1,666,667

AHI Content Inc

100.00%

1,666,667

1,666,667

AHI Lighting Inc

100.00%

1,666,667

3,333,333

AHI Film Inc

100.00%

3,333,333

1,666,667

AHI Records Inc

100.00%

1,666,667

400,000

App Artist Holding Inc

100.00%

400,000

1,000,000

App Artist Blueprint Inc

100.00%

1,000,000

1,666,667

App Artist Library Inc

100.00%

1,666,667

1,000,000

App Artist Marketing Inc

100.00%

1,000,000

1,000,000

App Artist Services Inc

100.00%

1,000,000

1,666,667

App Artist Software Inc

100.00%

1,666,667

400,000

A Peace World Holding Inc

100.00%

400,000

10,000,000

APW Assets Inc

100.00%

10,000,000

5,000,000

APW Construction Inc

100.00%

5,000,000

5,000,000

APW Contractor Inc

100.00%

5,000,000

5,000,000

APW Development Inc

100.00%

5,000,000

3,333,333

Genie Experiences Holding Inc

100.00%

3,333,333

1,666,667

Genie Experiences Coach Inc

100.00%

1,666,667

1,000,000

Genie Experiences Marketing Inc

100.00%

1,000,000

1,000,000

Genie Experiences Realty Inc

100.00%

1,000,000

3,333,333

Genie Experiences Services Inc

100.00%

3,333,333

400,000

Autarky Holding Inc.

100.00%

400,000

2,666,667

Autarky Consulting Inc

100.00%

2,666,667

1,000,000

Autarky Immigration Services Inc

100.00%

1,000,000

1,000,000

Autarky Library Inc

100.00%

1,000,000

1,000,000

Autarky Management Consulting Inc

100.00%

1,000,000

1,000,000

Autarky Marketing Inc

100.00%

1,000,000

1,000,000

Autarky Publishing Inc

100.00%

1,000,000

1,000,000

Autarky Services Inc

100.00%

1,000,000

1,000,000

BKPR Inc.

100.00%

1,000,000

6,666,667

Framework Capital Inc

100.00%

6,666,667

3,333,333

Axis Holding Inc

100.00%

3,333,333

400,000

Kreo Socivs Holding Inc

100.00%

400,000

81,633

Da Chuang Business Management Consultant Co., Ltd.

24.65%

331,170

32,554

Songhai Management Consulting Co. Ltd

100.00%

32,554

7,629,597

Self

-

-

Chen, Kuan-Yu

663,667

Animedia TV Inc

19.91%

3,333,333

25,301

Da Chuang Business Management Consultant Co., Ltd.

7.64%

331,170

Lo, Fun-Ming

226,491,620

Self

-

-

Kwong, Edwin

4,922,791

Show King Holdings Inc

92.22%

5,338,095

Wu, Tsung Lun

1,126

Da Chuang Business Management Consultant Co., Ltd.

0.34%

331,170

Chang, Kai

-

-

-

-

Yueh, Jung-Lin

-

-

-

-

Lai, Chia Ling

199

Da Chuang Business Management Consultant Co., Ltd.

0.06%

331,170

1,512,871

Flora Lai Ltd

100.00%

1,512,871

Chiang, Yu-Chang

4,802

Da Chuang Business Management Consultant Co., Ltd.

1.45%

331,170

 

Following the issuance of the Shares-1 and Shares-2, we entered into an agreement with the sellers noting the satisfaction of any and all obligations originally owed pursuant to the Promissory Note-1and Promissory Note-2, thus cancelling out any and all obligations that would be owed pursuant to the Assumption-1 and Assumption-2 (the "Note Cancellation Agreement-1" and "Note Cancellation Agreement-2" ).

 

A description of the specific terms and conditions of the agreements related to Transaction 1and Transaction 2 are set forth in the LPA-1and LPA-2, respectively attached hereto as Exhibit 10.1and 10.2; the Promissory Note-1and Promissory Note-2, respectively attached hereto as Exhibit 10.3 and 10.4; the Assumption-1 and Assumption-2, respectively attached hereto as Exhibit 10.5 and 10.6; the Note Cancellation Agreement-1 and Note Cancellation Agreement-2, respectively attached hereto as Exhibit 10.7 and 10.8; and the Subscription Agreements-1 and Subscription Agreements-2, respectively attached hereto as Exhibit 10.9, 10.10, 10.11, and 10.12, all of which are incorporated herein by reference.

3 

 


 
 

 

 

Item 2.01                Completion of Acquisition or Disposition of Assets.

 

                Reference is made to the disclosures concerning the acquisition set forth in Item 1.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.

 

                The Land-1 and Land-2 consists of 1,749,128.75 square meters, in the Dataoping Section of Zaoqiao Township and Laotianliao Section of Touwu Township, Miliaoli County, Taiwan (R.O.C.). The lots in Land are separately zoned as "agricultural region;" "traffic region;" "forest region;" "C-class construction land;" and "water resource region." By law, the entire title to such lots zoned as agricultural region cannot be transferred to Green Forest until Green Forest obtains a license of agricultural enterprises.

 

The entire title to the lots other than those zoned as agricultural region will be transferred to Green Forest after closing, as any previous mortgage on the Land-1 and/or Land-2 will be satisfied after closing. The appraisal report has been disclosed as Exhibit 10.8 in current reports on Form 8-K previously filed with the Securities and Exchange Commission on December 30, 2013.

 

Before our acquisition, we had the Land-1 and Land-2 appraised by an independent third-party appraisal company, Zhanmao Real Estate Appraisers Firm ("Zhanmao"), to determine the fair market value of Land-1 and Land-2. Zhanmao appraised the Land-1 at TWD$3,369,303,693  (US$111,581,126.3) and appraised the Land-2 at TWD$1,214,398,015  (US$40,957,774.7) pursuant to "Sale Price Comparison approach"; "Land Development Analysis approach" for land of the specific types-agricultural; traffic; forest; and water resource, etc.

 

               We have not yet determined our specific use for the land, although we intend to either use it to develop scenic, destination real estate or hold it for later resale when we need to raise funds. We have entered into non-binding letters of intent to acquire several other properties in Taiwan, all of which we have disclosed on current reports on Form 8-K previously filed with the Securities and Exchange Commission. Once we complete all of these acquisitions, expected by the end of 2014, we will evaluate our land holdings in their entirety and develop an overall plan on how to develop and/or utilize the properties.

 

Item 3.02                Unregistered Sale of Equity Securities.

 

               Reference is made to the disclosures set forth under Item 1.01 of this report, which are incorporated herein by reference.

 

               Our issuance of 600,596,475 shares of our common stock pursuant to the Subscription Agreements, each dated August 11, 2014, were not issued in a "public offering" as defined in Section 4(2) of the Securities Act of 1933, as amended, (the "Securities Act") and met the requirements to qualify for exemption from registration pursuant to either Regulation S or Regulation D of the Securities Act of 1933, as amended (the "Securities Act"). The sale of shares exempt from registration under Regulation S was all made outside of the U.S. to non-U.S. persons.

 

               This Current Report on Form 8-K is neither an offer to sell nor the solicitation of an offer to buy securities. The securities have not been registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an exemption from registration under the Securities Act.

 

Item 9.01                Financial Statements and Exhibits.

 

(d)           Exhibits 

 

               The following exhibits are being filed herewith:

 

Exhibit No. and Description

 

10.1    Land Purchase Agreement in Transaction 1, dated as of August 11, 2014

 

10.2    Land Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.3    Promissory Note in Transaction 1, dated as of August 11, 2014

 

10.4    Promissory Note in Transaction 2, dated as of August 11, 2014

 

10.5    Agreement of Assignment, Assumption and Release in Transaction 1, dated as of August 11, 2014

 

10.6    Agreement of Assignment, Assumption and Release in Transaction 2, dated as of August 11, 2014

 

10.7    Cancellation of Promissory Note in Transaction 1, dated as of August 11, 2014

 

10.8    Cancellation of Promissory Note in Transaction 2, dated as of August 11, 2014

 

10.9    Regulation S Stock Purchase Agreement in Transaction 1, dated as of August 11, 2014

 

10.10 Regulation S Stock Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.11 Regulation D Stock Purchase Agreement in Transaction 1, dated as of August 11, 2014

 

10.12 Regulation D Stock Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.13 Appraisal Report of Zhanmao Real Estate Appraisers Firm.

* Previously filed in our Curent Report on Form 8-K dated December 30, 2013.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

SAN LOTUS HOLDING INC.

Dated: August 11, 2014

By:        /s/ Chen, Li-Hsing________________ 

              Chen Li-Hsing

              President and Chairman of the Board

 

EXHIBIT INDEX

 

 

 

Exhibit No. and Description

 

10.1 Land Purchase Agreement in Transaction 1, dated as of August 11, 2014

 

10.2 Land Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.3 Promissory Note in Transaction 1, dated as of August 11, 2014

 

10.4 Promissory Note in Transaction 2, dated as of August 11, 2014

 

10.5 Agreement of Assignment, Assumption and Release in Transaction 1, dated as of August 11, 2014

 

10.6 Agreement of Assignment, Assumption and Release in Transaction 2, dated as of August 11, 2014

 

10.7 Cancellation of Promissory Note in Transaction 1, dated as of August 11, 2014

 

10.8 Cancellation of Promissory Note in Transaction 2, dated as of August 11, 2014

 

10.9 Regulation S Stock Purchase Agreement in Transaction 1, dated as of August 11, 2014

 

10.10Regulation S Stock Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.11Regulation D Stock Purchase Agreement in Transaction 1, dated as of August 11,2014

 

10.12Regulation D Stock Purchase Agreement in Transaction 2, dated as of August 11, 2014

 

10.13 Appraisal Report of Zhanmao Real Estate Appraisers Firm.

* Previously filed in our Curent Report on Form 8-K dated December 30, 2013.