CORRESP 16 filename16.htm

Via Edgar

 

October 6, 2014

 

Division of Corporation Finance

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549  

 

Attention:Kathleen Krebs, Special Counsel
Kate Beukenkamp, Attorney Adviser
Larry Spirgel, Assistant Director
Claire DeLabar, Senior Staff Accountant
Terry French, Accountant Branch Chief
   
Re:Safety Quick Lighting & Fans Corp.
Amendment No. 2 to Registration Statement on Form S-1
Filed August 1, 2014, as amended August 5, 2014 and September 22, 2014
File No. 333-197821

 

Ladies and Gentlemen:

 

On behalf of Safety Quick Lighting & Fans Corp. (the “Company”), we are writing to respond to the comments raised in the letter, dated October 2, 2014, from the staff of the Securities and Exchange Commission (the “Commission”) regarding the Company’s Registration Statement on Form S-1 filed with the Commission on August 1, 2014, as amended August 5, 2014 and September 22, 2014 (the “Registration Statement”). The Company’s responses below correspond to the captions and numbers of those comments, which are reproduced below in italics. In response to your comments, the Company has amended the Registration Statement, as appropriate, and filed the amended Registration Statement with the Commission. Capitalized terms used in this letter but not otherwise defined herein have the meanings assigned to them in the Registration Statement.

 

General

 

Comment 1. We have considered your response to comment 1 from our letter dated August 28, 2014. Please tell us why you are registering all of the company’s outstanding common shares and all shares underlying convertible and exchangeable securities. For the shares being registered that were not part of the notes and warrants offerings, tell us when and how the shareholders received their shares.
Response:

In response to your first inquiry within this comment, as stated in the Registration Statement, the Company is obligated to file a registration statement covering the shares of its common stock underlying the Notes and Warrants sold in the Notes Offering pursuant to the Registration Rights Agreements entered into between the Company and the Investors. Additionally, given the Company’s intent to seek quotation on the Over-the-Counter Bulletin Board upon effectiveness of the Registration Statement, the Company determined to include in the Registration Statement all of its issued and outstanding shares of common stock in an effort to facilitate some measure of liquidity in the market for its common stock subsequent to approval by FINRA.

 

In response to your second inquiry within this comment, please see the chart attached as Exhibit A hereto, which details the requested additional information regarding all shareholders, including those that did not purchase their respective securities in the Notes Offering.

Selling Shareholders, page 22

 

Comment 2.Please revise the fourth paragraph to state that you have 35,500,000 shares outstanding as of August 31, 2014, rather than 63,485,919 shares outstanding.
   
Response:In response to your comment, the Company has revised the Registration Statement to disclose the number of shares outstanding as of August 31, 2014 as 35,500,000. Please see the Selling Shareholders section, found on page 22 of the Registration Statement.

 

Comment 3.Please identify here and under “Principal Shareholders” on page 50 the shareholders who have agreed to lock up their shares pursuant to the terms of a Lock-Up and Leak-Out Agreement. Disclose the aggregate number of shares locked-up and the date when the lock-up ends. Disclose the material terms of the Lock-Up and Leak-Out Agreement, including that shareholders may begin selling their shares prior to the end of the 24-month lock-up period upon the earlier of November 1, 2014, or the date of effectiveness of this registration statement. Explain that the ability to sell and amount of shares that shareholders may sell depends upon the then current trading price and trading volume of the company’s shares. Disclose these terms under “Lock-Up Agreements” on page 53.
Response:In response to your comment, the Company has revised the Registration Statement to specify, for each shareholder in the Selling Shareholders table and in the Principal Shareholders table, the number of shares subject to such shareholder’s Lock-Up and Leak-Out Agreement, the date the lock-up period ends, and the percentage of trading volume for each Lock-Up and Leak-Out Agreement based on the then-current price per share of the Company’s common stock. The Company has also added additional detail to its general disclosure of the Lock-Up and Leak-Out Agreements. Please see the Selling Shareholders, Principal Shareholders and Description of Securities sections, found on pages 22, 51 and 55 of the Registration Statement, respectively, and Exhibit 10.20 in the Registration Statement.

 

  
 

If you have any questions relating to any of the foregoing, please contact the undersigned, or Peter J. Gennuso, Company Counsel, at (212) 908-3958.

 

Respectfully,

 

/s/ James R. Hills

 

James R. Hills

 

cc:

Rani Kohen, Chairman, Safety Quick Lighting & Fans Corp.

Peter J. Gennuso, Esq.

  
 

EXHIBIT A

 

  (1a) (1b) (1) (2) (4) (5) (6) (7) (8) (9) (10) (11)
  Common Stock Convertible Notes Warrants Options Total
      2013 PPM   2013 PPM 2013 PPM Total  
Shareholder/Investor Source Shares Tranche 1 Tranche 2 Total Total Tranche 1 Tranche 2 Total All Warrants Total
Dov Shiff a 8,959,598   2,600,000  2,600,000      1,690,000  1,690,000  1,690,000    13,249,598 
RNBK Holdings, LLC [Rani Kohen] a 8,003,969                         -                             -                       -      8,003,969 
Motek 7 SQL, LLC [Hillel Bronstein] a, e 7,771,566                         -                             -                       -      7,771,566 
DropLight LLC                       -    1,500,000  900,000  2,400,000    975,000  585,000  1,560,000  1,560,000    3,960,000 
David S. Nagelberg 2003 Revocable Trust DTD 7/2/03                       -    1,100,000  900,000  2,000,000    715,000  585,000  1,300,000  1,300,000    3,300,000 
James R. Hills b 730,818   1,000,000  1,000,000  74,083    650,000  650,000  724,083    2,454,901 
Dutchess Opportunity Fund II LP f 1,400,000 800,000    800,000    200,000    200,000  200,000    2,400,000 
Harry Mittelman Revocable Living Trust                       -    1,000,000  400,000  1,400,000    650,000  260,000  910,000  910,000    2,310,000 
XLR-8 (Delaware) LLC [Bob Nardelli]                       -    400,000  1,000,000  1,400,000    100,000  650,000  750,000  750,000    2,150,000 
Safety Investors 2014, LLC [Steven Siegelaub]                       -      1,000,000  1,000,000      650,000  650,000  650,000    1,650,000 
Israel Kaminsky a 1,484,313                         -                             -                       -      1,484,313 
Thomas Ridge d 875,000 200,000    200,000    50,000    50,000  50,000  100,000  1,225,000 
Grannus Financial Advisors f 1,000,000                         -                             -                       -      1,000,000 
Investment 2013, LLC  [Steven Siegelaub]                       -    776,535    776,535    194,134    194,134  194,134    970,669 
301 Office Ventures, LLC [Steven Siegelaub] d 875,000                         -                             -                       -      875,000 
Enterprise 2013, LLC  [Steven Siegelaub] b 577,046                         -    185,208                         -    185,208    762,254 
Jacob Steinmetz - Steinmetz, Haring, Gurman & Co. a 576,762                         -                             -                       -      576,762 
Eugene W. Kelly                       -    200,000  200,000  400,000    50,000  50,000  100,000  100,000    500,000 
Founding Asset Management [Chris Davis]                       -    400,000    400,000    100,000    100,000  100,000    500,000 
John W. Kelly                       -    200,000  200,000  400,000    50,000  50,000  100,000  100,000    500,000 
Konrad Habsburg                       -    400,000    400,000    100,000    100,000  100,000    500,000 
Michael Perillo                       -      400,000  400,000      100,000  100,000  100,000    500,000 
Serge Kremer                       -    400,000    400,000    100,000    100,000  100,000    500,000 
Tariq Masood                       -    400,000    400,000    100,000    100,000  100,000    500,000 
Gidon Shem-Tov a 356,235                         -                             -                       -      356,235 
Eran Guzi b 230,819                         -    74,083                         -    74,083    304,902 
Keith Kurland b 230,819                         -    74,083                         -    74,083    304,902 
Laurie Satanosky b 230,818                         -    74,084                         -    74,084    304,902 
Noga Solovey b 230,818                         -    74,084                         -    74,084    304,902 
Dennis Sevel b 230,819                         -    74,083                         -    74,083    304,902 
Phillips Peter d 200,000                         -                             -                       -    100,000  300,000 
Clive Anthony Caunter                       -    200,000    200,000    50,000    50,000  50,000    250,000 
David Scher and Tatiana Scher                       -    100,000  100,000  200,000    25,000  25,000  50,000  50,000    250,000 
Dirk Horn                       -    200,000    200,000    50,000    50,000  50,000    250,000 
Dutchess Global Strategies Fund LLC                       -      200,000  200,000      50,000  50,000  50,000    250,000 
Judith F. Krandel                       -    100,000  100,000  200,000    25,000  25,000  50,000  50,000    250,000 
Ami Kohen e 200,000                         -                             -                       -      200,000 
John H. Blair III                       -    160,000    160,000    40,000    40,000  40,000    200,000 
Nisim Farchi c 175,000                         -                             -                       -      175,000 
Reuven Arie Shomrat c 175,000                         -                             -                       -      175,000 
Avishay Rubin b 115,409                         -    37,042                         -    37,042    152,451 
The Nikko Trust [P. Habsburg]                       -    120,000    120,000    30,000    30,000  30,000    150,000 
Igal Marom a 127,227                         -                             -                       -      127,227 
Debra Shore                       -    100,000    100,000    25,000    25,000  25,000    125,000 
Gregory J. Attorli and Debra Shore JTWROS                       -    100,000    100,000    25,000    25,000  25,000    125,000 
Christopher Lahiji                       -      80,400  80,400      20,100  20,100  20,100    100,500 
David Usha d 100,000                         -                             -                       -      100,000 
Murray Lee d 100,000                         -                             -                       -      100,000 
Patty Barron d 100,000                         -                             -                       -      100,000 
Pepi Kohen e 100,000                         -                             -                       -      100,000 
R. Michael Stunden                       -    80,000    80,000    12,000    12,000  12,000    92,000 
Carol Morton                       -    40,000    40,000    6,000    6,000  6,000    46,000 
Adam Feren c 20,000                         -                             -                       -      20,000 
Ayal Bitton c 20,000                         -                             -                       -      20,000 
Big Hit Exporation, LLC [Stephen Golding] c 20,000                         -                             -                       -      20,000 
Harriet Rosenberg c 20,000                         -                             -                       -      20,000 
Henry Garofalo c 20,000                         -                             -                       -      20,000 
Irene Schuster c 20,000                         -                             -                       -      20,000 
Kelsi Rosneberg c 20,000                         -                             -                       -      20,000 
Lori Feren c 20,000                         -                             -                       -      20,000 
Murray Reffsin c 20,000                         -                             -                       -      20,000 
Pamela Siegelaub c 20,000                         -                             -                       -      20,000 
Robert & Arlene Feldman c 20,000                         -                             -                       -      20,000 
Robert Wald c 20,000                         -                             -                       -      20,000 
Tramel Exploration, LLC [Martin and Meg Thirer] c 20,000                         -                             -                       -      20,000 
Jacob Nagar a 16,964                         -                             -                       -      16,964 
Max Rosneberg c 16,000                         -                             -                       -      16,000 
Betsy Siegelaub c 10,000                         -                             -                       -      10,000 
John Lawrence Sr c 10,000                         -                             -                       -      10,000 
Karen Lippman c 10,000                         -                             -                       -      10,000 
Marc Siegelaub c 10,000                         -                             -                       -      10,000 
Veronica & Bradon Godfrey c 10,000                         -                             -                       -      10,000 
                         
Total   35,500,000 8,976,535  9,080,400  18,056,935  666,750  3,672,134  5,390,100  9,062,234  9,728,984  200,000  63,485,919 

  

  
 

Columns 1a and 1b - The number of shares of common stock currently held. As indicated in Column 1a by the letters below, these shares were acquired by the shareholders:

a.from their initial investment in Safety Quick Light LLC and upon its conversion into Safety Quick Lighting & Fans, Inc.;
b.pursuant to the 2012 PPM (as discussed in Column 5);
c.pursuant to a stock purchase agreement to purchase shares from a founding shareholder;
d.as compensation for services rendered to the Company;
e.as a transfer or gift from another shareholder; or
f.pursuant to a stock purchase agreement with the Company.

Column 2 - Reflects the convertible notes issued by the Company on November 26, 2014 pursuant to the Notes Offering.

 

Column 3 - Reflects the convertible notes issued by the Company on May 8, 2014 and June 25, 2014 pursuant to the Notes Offering.

 

Column 4 - Includes the total of Columns 2 and 3.

 

Column 5 - Reflects warrants issued by the Company to certain investors who purchased shares in the Company pursuant two offerings to private investors in 2012 (collectively, the "2012 PPM"), the first of which resulted in a capital raise of $800,000 and ended on or about May 30, 2012, and the second of which resulted in a capital raise of $100,000 and ended on or

about July 25, 2012.

 

Column 6 - Reflects the warrants issued by the Company on November 26, 2014 pursuant to the Notes Offering.

 

Column 7 - Reflects the warrants issued by the Company on May 8, 2014 and June 25, 2014 pursuant to the Notes Offering.

 

Column 8 - Includes the total of Columns 6 and 7.

 

Column 9 - Includes the total of Columns 5 and 8.

 

Column 10 - Includes options issued to certain members of our Board of Directors, as more specifically described in the S-1.

 

Column 11 - Includes the total of Columns 1, 4, 9, and 10.