PART II AND III 2 pos1.htm POS1 XTI Aircraft Company: Form 1-A Offering Circular

This Post-Qualification Offering Circular Amendment No.1 amends the offering circular of Business Lines Corp. as qualified on October 13, 2017, and as may be amended and supplemented from time to time (the “offering circular”), to add, update and/or replace information contained in the offering circular.

 

Post-Qualification Offering Circular

Amendment No.1 File No. 024-10725

 

  PART II

 

OFFERING CIRCULAR

Business Lines Corp.

100 Gordon St.

Elk Grove Village, IL 60007

Up to 3,000,000 Common Shares
Minimum purchase: 100 Common Share ($500)

We are offering up to 3,000,000 common shares on a “best efforts” basis pursuant to Reg A+ tier II. Since there is no minimum amount of securities that must be purchased, all investor funds will be available to the company upon commencement of this Offering and no investor funds will be returned.

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

Sale of these shares has not commenced and will commence within two calendar days post Post-Qualification of the Offering Circular, and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F). There is currently no trading market for our common stock.

These are speculative securities. Investing in our shares involves significant risks. You should purchase these securities only if you can afford a complete loss of your investment. See “Risk Factors” beginning on page 10.  

 

 

 

 

 

 

 

 

Underwriting

 

 

 

 

 

 

 

 

 

Number of

 

 

Price to

 

 

discount and

 

 

Proceeds to

 

 

Proceeds to

 

 

 

Shares

 

 

Public

 

 

commissions (1)

 

 

issuer (2)

 

 

other persons

 

Per Class A share

 

1

 

$

 5.00

 

$

 0.00

 

$

 5.00

 

$

 0.00

 

Total Maximum

 

3,000,000  

 

$

15,000,000  

 

$

 0.00

 

$

 15,000,000  

 

$

 0.00

 

 

 

(1)

We are not currently using commissioned sales agents or underwriters.

 

This is our offering, and no public market currently exists for our shares. The Offering price may not reflect the market price of our shares after the Offering. The Company does not intend to seek a public listing for the Shares. Moreover, our common stock is not listed for trading on any exchange or automated quotation system. The Company presently does not intend to seek such listing for its common stock, but should it hereinafter elect to do so, there can be no assurances that such listing will ever materialize.

 

The proposed sale will begin as soon as practicable after this Offering Circular has been qualified by the Securities and Exchange Commission (the “SEC”) and the relevant state regulators, as necessary. The offering will continue until the Company has sold all of the shares offered hereby or on such earlier date as the Company may terminate the Offering. The shares offered hereby are offered on a “best efforts” basis, and there is no minimum offering.


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We have made no arrangements to place subscription proceeds or funds in an escrow, trust or similar account, The funds shall be received by BUSINESS LINES CORP’s Special Account (the “Investors Account”) by transfer, the funds shall be immediately available from the sale of shares to us for use in our operation, once the funds received and accepted in the special segregated account, the funds can then be transferred directly to the Company operating account.. See “Plan of Distribution” and “Securities Being Offered” for a description of our capital stock.

 

Please note that the Company is a “shell” company in accordance with Rule 405 promulgated under the Securities Act of 1933. Accordingly, any securities sold in this offering can only be resold through registration under the Securities Act of 1933; Section 4(1), if available, for non-affiliates; or by meeting the following conditions of Rule 144(i): (a) the issuer of the securities that was formerly a shell company has ceased to be a shell company; (b) the issuer of the securities is subject to the reporting requirements of Section 13 or 15(D) of the Exchange Act of 1934; and the issuer of the securities has filed all Exchange Act reports and material required to be filed during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and at least one year has lapsed from the time that the issuer filed current Form 10 type information with the Commission reflecting its status as an entity that is not a shell company. For purposes herein, following the effectiveness of this Offering Statement, the Company will not be subject to the reporting requirements of the Exchange Act. Thus, the Company will be required to file another registration statement and become subject to the reporting requirements thereof in order to potentially provide for the application of Rule 144.

 

 

THE UNITED STATS SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO 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.

 

THE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THESE LAWS. THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE REGULATORY AUTHORITY NOR HAS THE COMMISSION OR ANY STATE REGULATORY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THIS OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

The Offering will terminate at the earlier of: (1) the date at which the maximum offering amount has been subscribed, (2) the date which is one year from this Offering Statement being qualified by the Commission, or (3) the date at which the Offering is earlier terminated by the company in its sole discretion.

We are following the “Offering Circular” format of disclosure under Regulation A.

100 Gordon St, Elk Grove Village, IL 60007

The date of this Offering Circular is September 18, 2018


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TABLE OF CONTENTS

 

 

Summary of Information in Offering Circular4 

Risk Factors10 

Dilution20 

Plan of Distribution21 

Use of Proceeds to Issuer23 

Description of Business24 

Description of Property26 

Management’s Discussion and Analysis of Financial Condition and Results of Operations27 

Directors, Executive Officers and Significant Employees30 

Compensation of Directors and Executive Officers32 

Security Ownership of Management and Certain Security Holders33 

Interest of Management and Others in Certain Transactions34 

Securities Being Offered35 

Financial Statements37 

Index to Exhibits47 

Signatures48 

 

 

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.


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1.SUMMARY OF INFORMATION IN OFFERING CIRCULAR 

 

As used in this prospectus, references to the “Company,” “we,” “our”, “us” or “Company Name” refer to Business Lines Corp. unless the context otherwise indicated.

 

You should carefully read all information in the prospectus, including the financial statements and their explanatory Shares, under the Financial Statements prior to making an investment decision.

 

The Company

 

Organization:

We were incorporated under the laws of the State of  

Delaware on July 12, 2017. Our principal office is  located at

 

Capitalization:

Our articles of incorporation provide for the issuance of up to 75,000,000 shares of common stock, par value $0.0001. As of the date of this Prospectus there are 15,000,000 shares of our common stock issued and outstanding. Our articles of incorporation do not provide for the issuance of any preferred stock or other class of equity securities.

Management:

Our Chief Executive Officer and Director is Vladislav Gasnikov.  The officer also serves as Director of the Company. There are no other officers or directors of the Company. Each of the aforementioned spends approx. 40 hours per week to the affairs of the Company.

Controlling Shareholders:

Our Officer and Director constitute our only stockholders, owning 15,000,000 shares. As such, our current Officer and Director will be able to exert a significant influence over the affairs of the Company at the present time, and will continue to do so after the completion of the offering


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Shell Company Status:

We are a “shell company” within the meaning of Rule 405, promulgated pursuant to Securities Act, because we have nominal assets and nominal operations.  Accordingly, the securities sold in this offering can only be resold through registration under Section 5 the Securities Act of 1933, Section 4(1), if available, for non-affiliates or by meeting the conditions of Rule 144(i).  A holder of our securities may not rely on the safe harbor from being deemed statutory underwriter under Section 2(11) of the Securities Act, as provided by Rule 144, to resell his or her securities. Only after we (i) are not a shell company, and (ii) have filed all reports and other materials required to be filed by section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months (or for such shorter period that we may be required to file such reports and materials, other than Form 8-K reports); and have filed current “Form 10 information” with the SEC reflecting our status as an entity that is no longer a shell company for a period of not less than 12 months, can our securities be resold pursuant to Rule 144.  “Form 10 information” is, generally speaking, the same type of information as we are required to disclose in this prospectus, but without an offering of securities.  These circumstances regarding how Rule 144 applies to shell companies may hinder your resale of your shares of the Company.

 

 

Independence:

We are not a blank check company, as such term is defined by Rule 419 promulgated under the Securities Act of 1933, as amended, as we have a specific business plan and we presently have no plans or intentions to engage in a merger or acquisition with an unidentified company, companies, entity or person.

Our Business

 

 


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Description of Operations:

Business Lines Corp. (the “Company” or “Business Lines”) was incorporated in the State of Delaware on July 12, 2017. Business Lines will execute its business plan by starting Intelligence network of warehouses-carriers-shippers, useful IT multi-platform system for businesses in b2b area. On Demand service (mobile app) to provide rapid nonstop freight delivery with no additional costs and over-payments for all 48 states.

Business Lines are implementing a special innovative smart service and mobile APP called OLIMP for the rapid freight delivery with no additional costs and overpayments. OLIMP (Operational Logistics Improvement to Mutual Performance) – is a special Web-platform and mobile APP which let all Transportation business actors increase their performance. The OLIMP’s main idea are based on smart processing of shipping orders, real-time routes optimization with counting constrains and conditions and organization of the virtual network of on-demand warehouses.

 

Historical Operations:

 

 

 

Since inception, the Company has limited to no operations consisting primarily of researching potential business opportunities in the trucking business. As of June 30th, 2018, we have generated $1,465,363 in revenue and incurred expenses of $1,462,908. Our operating expenses consist of cost of revenue, and general operational cost. As a result, our net profit for the period from inception through January 1st, 2018 to June 30, 2018 was $2,455.

 

Current Operations:

The Company has been focused on 1st stage of the project which included network of warehouses on demand with local distribution options. Service available through webpage and smart phone App. OLIMP should be considered as a Business-to-Business-to-Consumer (B2B2C) Internet model due to our servicing all transportation business actors and system users. We will be a technology facilitator by providing the conduit through which clients will communicate one each other without any additional expenses for brokerage and get the best efficiency and cost solution. See “Description of Operations”

.. See “Description of Operations”

 


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Growth Strategy:

During FY2018, and after the introduction of the OLIMP platform, Business Lines intends to advertise aggressively to build awareness of our brand quality, customer service, and depth and breadth of products and services. Our strategy will be to position our website and services as a better way of organization transportation and crossdocking with improvement efficiency and profitability for all actors of deal.
Our advertising efforts are expected to include advertisements in transportation business publications and various other regional and national publications. We also intend to advertise and promote our platform through Internet website banner advertisements, social media such as Facebook and LinkedIn, radio and television commercials. Using advertising agencies which have direct affiliations with a wide range of websites, may be a cost-effective method of achieving the broad range of impressions necessary to properly promote OLIMPWORLD.COM. and OLIMPFREIGHT.COM

Our initial marketing efforts will be concentrated in segment of trucking companies up to 25 trucks and small- and middle-size warehouses. However, as part of our long-term goals, we plan to market our services to bigger companies up to 250 trucks and logistics terminals.

Strategic alliances are crucial for the full realization of the revenue streams we anticipate. These alliances must be forged in three main areas: the banking industry, e-commerce industry and with biggest logistical companies. We will pursue relationships with affinity partners to increase our access to potential customers, build brand name recognition, and expand the products and services we can offer our customers. Typical advertising expenses for Internet start-up companies to attract new customers and building name recognition range from 48% to 285% of revenue. We believe that our focus on affinity relationships will result in lower account acquisition costs for members and lower advertising expenses versus these other Internet-based businesses. .

The Offering

 

 

Class of Securities Offered:

Common Share, face value $5

 

No. of Note being Sold in the Offering:

Up to 3,000,000 shares for a maximum offering amount of $15,000,000.

 

Offering Price:

The Company intends to offer the share at a price of $5 per share. There is a minimum purchase amount of 100 shares for an aggregate purchase of $500.

 

 


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No. of Shares Outstanding:

As of the date of this Prospectus, there are 15,000,000 shares of the Company’s common stock issued and outstanding. All of our issued and outstanding shares are owned by our officer and director.

 

No. of Shares after the Offering:

If the company have successful offering, there will 18,000,000 shares of the Company’s common stock issued and outstanding following the completion of the offering contemplated herein.

Termination of the Offering:

The offering will commence within two (2) calendar days of qualification of this Prospectus and will terminate on the sooner of the sale of the maximum number of shares sold, or 365 days from the effective date of this Offering Statement or the decision by Company management to deem the offering closed.

Offering Cost:

We estimate our total offering registration costs to be $20,000.  If we experience a shortage of funds prior to funding, our officer and director has verbally agreed to advance funds to the Company to allow us to pay for offering costs, filing fees, and correspondence with our shareholders; however our officer and director has no legal obligation to advance or loan funds to the Company.

 

 

Market for our Common Stock:

Our common stock is not listed for trading on any exchange or automated quotation system. We do not intend, upon the effectiveness of this Offering Statement to seek such a listing. We may, however, seek to obtain a listing at a later date, although there can be no guarantee that we will be able to file and later have declared effective, a registration statement made pursuant to the Exchange Act of 1934. Moreover, there can be no assurance that a market maker will not agree to file the necessary documents with the Financial Industry Regulatory Authority (FINRA), which operates the OTQB Marketplace; nor can there be any assurance that such an application for quotation will be approved.

 

Common Stock Control:

Our officers and directors currently own all the issued and outstanding common stock of the company, and will continue to own all of the common shares to control the operations of the company after this offering, irrespective of its outcome.

 

Best Efforts Offering:

We are offering our common stock on a “best efforts” basis through our Chief Executive Officer, who will not receive any discounts or commissions for selling the shares. There is no minimum number of shares that must be sold in order to close this offering.


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2 FORWARD-LOOKING STATEMENTS

 

Certain statements in this memorandum constitute forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements that address expectations or projections about the future, including statements about product development, market position, expected expenditures, and financial results, are forward-looking statements.  Some of the forward-looking statements may be identified by words like believes, expects, anticipates, plans, intends, projects, estimates, indicates, hopes, will, shall, should, could, may, future, potential, or the negatives of these words, and all similar expressions.  Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements.  These statements are not guarantees of


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future performance and involve a number of risks, uncertainties, and assumptions.  Accordingly, actual results or performance of the Company may differ significantly, positively or negatively, from forward-looking statements made herein.  Unanticipated events and circumstances are likely to occur.  Factors that might cause such differences include, but are not limited to, those discussed under the heading, RISK FACTORS, which investors should carefully consider.  This list of factors is not exclusive. Business Lines cautions you not to put undue reliance on any forward-looking statements, which speak only as of the date of this document.  Business Lines undertakes no obligation to update any forward-looking statements to reflect future events or circumstances.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 INDUSTRY AND MARKET DATA

 

The opinions, estimates and projections and other forward looking statements contained herein, as well as industry and market data and certain other information used throughout this prospectus are derived from a variety of sources, including independent industry publications, government publications or other published independent sources, which Business Lines did not participate in preparing.  Business Lines has no alternative information source to validate these estimates. Although Business Lines has not independently verified the accuracy or completeness of the third-party information included in this memorandum, based on maengagement’s knowledge and experience, Business Lines believes that these third-party sources are credible and reliable. However, Business Lines makes no guarantees as to its accuracy or completeness.  


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Investors are cautioned not to place undue reliance on such market and industry data, estimates, projections and opinions, which may be based on numerous assumptions and subject to change based on various factors, including those discussed under the section entitled RISK FACTORS.   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.    RISK FACTORS

 

Investing in our shares involves risk. In evaluating the Company and an investment in the shares, careful consideration should be given to the following risk factors, in addition to the other information included in this Offering circular. Each of these risk factors could materially adversely affect Business Lines operating results or financial condition, as well as adversely affect the value of an investment in our shares. The following is a summary of the most significant factors that make this offering speculative or substantially risky. The company is still subject to all the same risks that all companies in its industry, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as cyber-security). Additionally, early-stage companies are


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inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

 

Risks Related to the Offering

 

No Reserve for Repayment.  

 

Business Lines will not maintain a reserve to repay the shares, and Business Lines will be primarily dependent upon cash flow generated from the combined operation to repay you.  If Business Lines does not continue to generate adequate revenues from the combined operation, Business Lines may not have adequate funding to repay the shares.

 

Risks Related to the Company

 

Our having generated no revenues from operations makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance.

 

As of July 17, 2017, we have generated no revenues. As a consequence, it is difficult, if not impossible, to forecast our future results based upon our historical data.  Because of the related uncertainties, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in revenues and expenses.  If we make poor budgetary decisions as a result of unreliable data, we may never become profitable or incur losses, which may result in a decline in our stock price. 

 

The company has realized significant operating losses to date and expects to incur losses in the future

 

The company has operated at a loss since inception, and these losses are likely to continue. Business Lines’s net loss for the period ending July 17th, 2017 was $5,000. Until the company achieves profitability, it will have to seek other sources of capital in order to continue operations.

 

 

The Company has limited capitalization and a lack of working capital and as a result is dependent on raising funds to grow and expand its business.

 

The Company lacks sufficient working capital in order to execute its business plan. The ability of the Company to move forward with its objective is therefore highly dependent upon the success of the offering described herein. Should we fail to obtain sufficient working capital through this offering we may be forced to abandon our business plan.  

 

We are a recently organized corporation with a limited operating history, and we may not be able to successfully operate our business or generate sufficient operating cash flows to make or sustain distributions to our stockholders.

 

We were incorporated on July 12, 2017, and we have a limited operating history. Our financial condition, results of operations and ability to make or sustain distributions to our stockholders will depend on many factors, including:

 

 

 

our ability to execute on our growth strategy including our business plan.

 

 

   

 

our ability to absorb costs that are beyond our control, such as taxes, insurance premiums, litigation costs and compliance costs;

  

 

 

economic conditions in our markets, as well as the condition of the financial markets and the economy generally.

 

We are dependent on the sale of our securities to fund our operations.


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We are dependent on the sale of our securities to fund our operations, and will remain so until we generate sufficient revenues to pay for our operating costs.  Our officers and directors have made no written commitments with respect to providing a source of liquidity in the form of cash advances, loans and/or financial guarantees. There can be no guarantee that we will be able to successfully sell our equity or debt securities. Such liquidity and solvency problems may force the Company to cease operations if additional financing is not available. No known alternative resources of funds are available in the event we do not generate sufficient funds from operations.

 

The Company is dependent on key personnel and loss of the services of any of these individuals could adversely affect the conduct of the company's business.

 

Our business plan is significantly dependent upon the abilities and continued participation of our officers and directors. It would be difficult to replace any of them at such an early stage of development of the Company. The loss by or unavailability to the Company of their services would have an adverse effect on our business, operations and prospects, in that our inability to replace them could result in the loss of one’s investment. There can be no assurance that we would be able to locate or employ personnel to replace any of our officers, should their services be discontinued. In the event that we are unable to locate or employ personnel to replace our officers we would be required to cease pursuing our business opportunity, which would result in a loss of your investment. 

 

Our Certificate of Incorporation and Bylaws limit the liability of, and provide indemnification for, our officers and directors.

 

Our Certificate of Incorporation permits us to indemnify our officers and directors to the fullest extent authorized or permitted by law in connection with any proceeding arising by reason of the fact any person is or was an officer or director of the Company.  Furthermore, our Certificate of Incorporation provides that no director of the Company shall be personally liable to it or its shareholders for monetary damages for any breach of fiduciary duty by such director acting as a director.  Notwithstanding this indemnity, a director shall be liable to the extent provided by law for any breach of the director's duty of loyalty to the Company or its shareholders, for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, pursuant to section 174 of the General Corporation Law of Delaware (unlawful payment of a stock dividend or unlawful redemption of stock), or for any transaction from which a director derived an improper personal benefit.  Our Certificate of Incorporation permits us to purchase and maintain insurance on behalf of directors, officers, employees or agents of the Company or to create a trust fund, grant a security interest and/or use other means to provide indemnification.

 

Our Bylaws permit us to indemnify our officers and directors to the full extent authorized or permitted by law.  

 

We have been advised that in the opinion of the Securities and Exchange Commission indemnification for liabilities arising under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities is asserted by one of our directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to court of appropriate jurisdiction. We will then be governed by the court's decision.

 

The Company may not be able to attain profitability without additional funding, which may be unavailable.

 

The Company has limited capital resources. Unless the Company begins to generate sufficient revenues to finance operations as a going concern, the Company may experience liquidity and solvency problems. Such liquidity and solvency problems may force the Company to cease operations if additional financing is not available. No known alternative resources of funds are available in the event we do not generate sufficient


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funds from operations. Our profitability depends on the profitability of the combined operations. In the event, Business Lines is unable to execute on the merger plan, we cannot make a profit.  

 

Risks Relating to Our Business

 

The profitability of attempted investments is uncertain.

 

Over the next twelve months, the Company intends to execute on the proposed business plan and the implementation of our own proprietary handling fully computerized algorithms. The computerized algorithm is fully developed and available to the company at its commencement of its operation, which allows us to have a continuous flawless delivery methodology in place. We will incur certain risks, including the expenditure of funds on, and the devotion of management's time to, our technology has inherited risks and might not deliver the expected results.   

 

There are several other Competitors in the market

 

The trucking industry is wide open and other companies are entering the business and driving down pricing and revenues.

 

The costs of defending or prosecuting claims and paying damages could reduce the amounts available for distribution to our shareholders.

 

Doing business is always fraught with lawsuits and litigations. If we are named as defendant in a lawsuit or if we are compelled to institute a claim against a party, such litigation could adversely affect our ability as a going concern since our resources would be expended on litigations.

 

Our business is subject to several general economic and business factors, which affect the broader industry, exist beyond our control, and any of which could have a material adverse effect on our operating results.

 

These factors include limited or excess capacity in the trucking industry and changes in economic conditions, deficits or surpluses in the market for used equipment, interest rates, license and registration fees and insurance premiums.

 

We may be affected by pricing pressures in our industry.

 

Over the next twelve months, the Company intends to execute on the proposed business plan and the implementation of our own proprietary handling fully computerized algorithms. The computerized algorithm is fully developed, owned and available to the company at its commencement of its operation, which allows us to have a continuous flawless delivery methodology in place. We will incur certain risks, including the expenditure of funds on, and the devotion of management's time to, our technology has inherited risks and might not deliver the expected results.   

 

We may be affected by labor issues in the broader transportation industry.

 

Difficulty in attracting drivers could affect our profitability and ability to grow. Periodically, the transportation industry experiences difficulty in attracting and retaining qualified drivers, including independent contractors, resulting in intense competition for drivers. We have from time to time experienced underutilization and increased expenses due to a shortage of qualified drivers. If we are unable to attract drivers when needed or contract with independent contractors when needed, we could be required to further adjust our driver compensation packages or let trucks sit idle, which could adversely affect our growth and profitability. If we are unable to retain drivers, our business, financial condition and results of operations could be harmed.

 

The trucking industry is capital intensive.


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If we are unable to generate sufficient cash from operations in the future, we may have to limit our growth, enter into financing arrangements or operate our revenue equipment for longer periods, any of which could have a material adverse effect on our profitability.

 

The loss of any of our major customers would adversely affect our business.

 

Our customers may go out of business for various reasons. The loss of our customers would adversely affect our business.

 

Our liquidity is highly dependent on our customers.

 

We will perform on contracts that Business Lines will have with its customers. . Such contracts generally require customers to reimburse us within 30 days of invoice date. If any of our large customers were to experience a liquidity problem that resulted in the customer being unable to make timely payments, we could, in turn, develop a liquidity problem. We may be forced to borrow additional funds at rates that may not be favorable or curtail capital spending. Additionally, the phasing out of current favorable payment terms with customers may have a potential negative impact on our cash flow. This could have a material adverse effect on our business, operating results or financial condition.

 

Our growth strategy includes diversification and expansion into new geographic markets. We are subject to various risks in pursuing this growth strategy and we may have difficulty in integrating our business plan and may be subject to unexpected liabilities.

 

Our business strategy includes a growth strategy for diversification and expansion into new geographic markets. However, we may experience increased competition that limits our ability to expand our business. Our assumptions underlying estimates of expected cost savings may be inaccurate or general industry and business conditions may deteriorate. A future merger and geographical expansion involve numerous risks, including, but not limited to: difficulties in integrating the operations, technologies and products acquired; the diversion of our management's attention from other business concerns; current operating and financial systems and controls may be inadequate to deal with our growth; the risks of entering markets in which we have limited or no prior experience and the loss of key employees.

 

If these factors limit our ability to integrate the operations, successfully or on a timely basis, our expectations of future results of operations may not be met, it could have a material adverse effect on our business, financial condition and results of operations. Further, there can be no assurance that we will be able to maintain or enhance our profitability following the execution of our business plan.

 

 

Our business strategy is dependent upon, and limited by, the availability of adequate capital.

 

Our business strategy will require additional capital for, among other purposes, acquiring additional trucks and entering new markets, which may include the acquisition of existing business and the related integration costs. If cash generated internally is insufficient to fund capital requirements, we will require additional debt or equity financing. Adequate financing may not be available or, if available, may not be available on terms satisfactory to us. In addition, the terms of the revolving credit facility and term loan and the Indenture may, under certain circumstances, limit our ability to make capital expenditures. If we fail to obtain sufficient additional capital in the future or we are unable to make adequate capital expenditures, we could be forced to curtail our business strategies by reducing or delaying capital expenditures. As a result, there can be no assurance that we will be able to execute on any of our business strategies.

 

We may be adversely impacted by fluctuations in the price and availability of diesel fuel and our ability to continue to collect fuel surcharges.

 

Diesel fuel is a significant operating expense for our business. We do not hedge against the risk of diesel fuel price increases. An increase in diesel fuel prices or diesel fuel taxes, or any change in federal or state regulations that results in such an increase, could have an adverse effect on our operating results. Depending


15



on the base rate and fuel surcharge levels agreed upon by our customers, there could be a delay in reflecting increases in our surcharges to customers resulting from a rapid and significant change in the cost of diesel fuel, which could also have a material adverse effect on our operating results. We continuously monitor the components of our pricing, including base freight rates and fuel surcharges, and address individual account profitability issues with our customers when necessary. Our fuel surcharge recovery may not capture increased costs we pay for fuel, especially when prices are rising. Further, during periods of low freight volumes, customers can use their negotiating leverage to negotiate fuel surcharge policies that are less favorable to us. While we have historically been able to adjust our base rate pricing and/or fuel surcharges to offset changes to the cost of diesel fuel, there is no guarantee that we will be able to do so in the future.

 

Sustained periods of abnormal weather can have a material adverse effect on our business.

 

Our terminals may close due to heavy snow, which will negatively affect revenues on a particular business day that may not be recouped in the future. In addition, inefficiencies in our loading, unloading and transit times associated with cleaning snow off of trucks before use and cleaning snow off of revenue units before and after transporting them, increased lodging costs due to hours of service restrictions for our drivers and premium (overtime) pay required in order to complete the unit movements over weekends to make up for the inefficiencies caused by delayed delivery of on-ground customer inventories may also have a negative impact on earnings.

 

Our operations are subject to business interruptions and casualty losses.

 

Our operations are subject to numerous inherent risks, particularly unplanned events such as inclement weather, union strikes, explosions, fires, other accidents and equipment failures. While our insurance coverage could offset losses relating to some of these types of events, our business, financial condition and results of operations could be materially adversely impacted to the extent any such losses are not covered by our insurance.

 

Insurance and claims expenses could have a material adverse effect on our business, financial condition and results of operations.

 

We have insurance for liability, transportation, business and physical damage with high deductible for the risks arising out of the services we provide and the nature of our operations, including claims exposure resulting from cargo loss, personal injury, property damage and related liabilities, and workers' compensation. Workers' compensation is determined using actuarial estimates of the aggregate liability for claims incurred and an estimate of incurred but not reported claims, on an undiscounted basis.

 

We rely on our information technology systems to manage numerous aspects of our business and a disruption of these systems could adversely affect our business.

 

Our information technology, or IT, systems are an integral part of our business and a serious disruption to our IT systems could significantly limit our ability to manage and operate our business efficiently, which in turn could materially adversely impact our business, financial condition and results of operations. We depend on our IT systems for vehicle inventory management, load makeup, dispatch, delivery reporting and invoices. Our IT systems also enable us to ship products to our customers on a timely basis, maintain cost-effective operations and provide a high level of customer service. Some of our systems are not fully redundant, and our disaster recovery planning does not account for all eventualities.

 

Our information technology systems also depend upon global communications providers, satellite-based communications systems, electric utilities, and telecommunications providers. We have no control over the operation, quality or maintenance of these services or whether vendors will improve their services or continue to provide services that are essential to our business. Disruptions or failures in the services upon which our information technology platforms rely may adversely affect the services we provide, which could increase our costs or result in a loss of customers that could have a material adverse effect on our results of operation.

 


16



The security risks associated with information technology systems have increased in recent years because of the increased sophistication and activities of perpetrators of cyber-attacks. A failure in or breach of our information technology security systems, or those of our third party service providers, as a result of cyber-attacks or unauthorized access to our network could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, increase our costs and/or cause losses. We also confront the risk that a terrorist or other third parties may seek to use our property, including our information technology systems, to inflict major harm. We continually take steps to make appropriate enhancements to our information technology systems; however, our systems may be vulnerable to disruption, failure or unauthorized access which could have a material adverse effect on our consolidated financial statements.

 

 

We are subject to various environmental and employee health and safety regulations that could impose substantial costs on us and may adversely impact our operating performance.

 

Our business is subject to numerous federal, state and local laws, regulations and requirements that govern environmental and health and safety matters, including those relating to air emissions, wastewater discharges, regulated materials management, the generation, handling, storage, transportation, treatment and disposal of regulated wastes or substances, and those that impose liability for and require investigation and remediation of releases or threats of release of regulated substances, including at third-party owned off-site disposal sites, as well as laws and regulations that regulate workplace safety. In particular, under applicable environmental requirements, we may be responsible for the investigation and remediation of natural resource damages associated with, and third-party property damage or personal injury claims arising from, environmental conditions at currently and formerly owned, leased, operated or used sites and third-party owned disposal sites, regardless of fault or the legality of the activities that led to such contamination. Given the nature of the past operations conducted by us, our predecessors and others at our current and former properties, there can be no assurance that the extent of all soil and groundwater contamination has been identified and is being addressed at all of our owned or operated properties and it is possible that we could be required to conduct, or be held responsible for the cost of conducting, investigations and remediation at any of our current properties, at formerly owned or operated properties or at off-site disposal sites in the future.

 

Compliance with environmental and health and safety laws and regulations and the requirements and terms and conditions of the environmental permits, licenses and other approvals that are required for the operation of our business may cause us to incur substantial capital costs and operating expenses and may impose significant restrictions or limitations on the operation of our business. Environmental and health and safety regulations and environmental permits, licenses and other approvals may also require us to install new or updated pollution control equipment, modify our operations or perform other corrective actions at our facilities. In addition, the cost of complying with various environmental requirements is likely to increase over time, and there can be no assurance that the cost of compliance will not have a material adverse effect on our business, financial condition and results of operations. Moreover, violations of applicable environmental and health and safety laws and regulations or for the failure to have or comply with the terms and conditions of required environmental permits or other required approvals can lead to substantial fines or penalties or enforcement actions, including regulatory or judicial orders enjoining or curtailing operations or requiring remedial or corrective measures, installation of pollution control equipment or other actions.

 

Future developments, such as changes in the nature of our operations, or changes in laws and regulations (such as in response to climate change concerns) or more stringent enforcement or interpretation thereof could cause us to incur substantial losses or expenditures. In addition, future spills or releases of regulated substances or accidents or the discovery of currently unknown contamination could give rise to material losses, expenditures and environmental or health and safety liabilities, including liabilities resulting from lawsuits brought by private litigants or neighboring property owners or operators for personal injury or property damage related to the operation of our facilities or the land on which our facilities are located.

 

Concern over climate change, including the impact of global warming, has led to significant legislative and regulatory efforts to limit carbon and other greenhouse gas emissions, and some form of federal, state, or regional climate change legislation is possible in the future. We are unable to determine with any certainty the effects of any future climate change legislation. However, emission-related regulatory actions have


17



historically resulted in increased costs of revenue equipment and diesel fuel, and future legislation, if passed, could result in increases in these and other costs. Increased regulation regarding greenhouse gas emissions, including diesel engine emissions and/or total vehicle fuel economy, could impose substantial costs on us that may adversely impact our results of operations. We may also be subject to additional requirements related to customer-led initiatives or their efforts to comply with environmental programs. Until the timing, scope and extent of any future regulation or customer requirements become known, we cannot predict their effect on our cost structure or our operating results. Furthermore, although we are committed to mandatory and voluntary sustainability practices, increased awareness and any adverse publicity about greenhouse gas emissions emitted by companies in the transportation industry could harm our reputation or reduce customer demand for our services.

 

We operate in a highly regulated industry, and costs of compliance with, or liability for violations of, existing or future regulations could have a material adverse effect on our operating results.

 

Various federal and state agencies exercise broad regulatory powers over the transportation industry, generally governing such activities as operations of and authorization to engage in motor carrier freight transportation, operations of non-vessel-operating common carriers, safety, contract compliance, insurance requirements, tariff and trade policies, taxation, and financial reporting. We could become subject to new or more restrictive regulations, such as regulations relating to engine emissions, drivers' hours of service, occupational safety and health, ergonomics, or cargo security. Compliance with such regulations could substantially reduce equipment productivity, and the costs of compliance could increase our operating expenses.

 

 Our drivers also must comply with the safety and fitness regulations promulgated by the U.S. Department of Transportation, or DOT, including those relating to drug and alcohol testing and hours of service.

 

Federal Motor Carrier Safety Administration's, or FMCSA, compliance, safety, accountability program and regulations could potentially result in a loss of business to other carriers, driver shortages, and increased costs for qualified drivers, and driver and/or business suspension for noncompliance. A resulting decline in the availability of qualified drivers, coupled with additional personnel required to satisfy future revisions to hours-of-service regulations, could adversely impact our ability to hire drivers to adequately meet current or future business needs. Unsatisfactory FMCSA scores could result in a DOT intervention or audit, resulting in the assessment of fines, penalties, or a downgrade of our safety rating. Failures to comply with DOT safety regulations or downgrades in our safety rating could have a material adverse impact on our operations or financial condition. Increases in license and registration fees, bonding requirements, or taxes, including federal fuel taxes, or the implementation of new forms of operating taxes on the industry could also have an adverse effect on our operating results.

        

The ongoing development of data privacy laws may require changes to our data security policies and procedures, and the associated costs of the changes required to maintain our compliance with standards in the U.S. and other jurisdictions in which we operate could adversely affect our operating results.

        

 

Our business could be harmed by antiterrorism measures.

 

As a result of terrorist attacks on the United States, federal, state and municipal authorities have implemented and may implement in the future various security measures, including checkpoints and travel restrictions on large trucks. Although many companies would be adversely affected by any slowdown in the availability of freight transportation, the negative impact could affect our business disproportionately. If security measures disrupt the timing of deliveries, we could fail to meet the needs

 

of our customers or could incur increased costs in order to do so. New antiterrorism measures may be implemented from time to time and that such new measures could have a material adverse effect on our business, results of operations, or financial condition.

 

Current and future legal proceedings could adversely affect us and our operations.


18



We cannot predict the outcome of future legal proceedings, which could result in judgments that could negatively impact our financial condition, results of operations, liquidity or capital resources. We may incur significant legal fees and expenses in connection with such litigation, which may also divert management's attention from our business. See "Business—Legal Proceedings."

 

 

We are dependent on key personnel and the loss of one or more of those key personnel could have a material adverse effect on our operating results.

 

Competition for qualified employees and personnel in the automotive transportation industry is intense and there are a limited number of qualified persons with knowledge of and experience in the automotive transportation industry. The process of recruiting personnel with the combination of skills and attributes required to carry out our strategies is often lengthy. Our success depends to a significant degree upon our ability to attract and retain qualified management, administrative, marketing and technical personnel and upon the continued contributions of our management and personnel. In particular, our success is highly dependent upon the abilities of our senior executive management. We believe this management team, comprised of individual who have worked in the automotive transportation industry for many years. The loss of the services of one or more of them could have a material adverse effect on our operating results.

 

 Risks Related to Our Securities

 

There is no current established trading market for the Shares or Common Stock and if a trading market does not develop, purchasers of our securities may have difficulty selling their securities

 

There is currently no established public trading market for our Shares or our Common Stock and an active trading market in our securities may not develop or, if developed, may not be sustained.  While we intend to seek a quotation on a major national exchange or automated quotation system in the future, there can be no assurance that any such trading market will develop, and purchasers of the Shares may have difficulty selling their Shares. No market makers have committed to becoming market makers for our common shares and none may do so.

 

Because we are a “shell company the holders of our restricted securities will not be able to sell their securities in reliance on Rule 144 and we cannot file registration statements under Section 5 of the Securities Act using a Form S-8, until we cease being a “shell company”.

 

We are a “shell company” as that term is defined by the applicable federal securities laws.  Specifically, because of the nature and amount of our assets and our very limited operations, pursuant to applicable federal rules, we are considered a “shell company”.  Applicable provisions of Rule 144 specify that during that time that we are a “shell company” and for a period of one year thereafter, holders of our restricted securities cannot sell those securities in reliance on Rule 144. This restriction may have potential adverse effects on future efforts to form additional capital through unregistered offerings. Another implication of us being a shell company is that we cannot file registration statements under Section 5 of the Securities Act using a Form S-8, a short form of registration to register securities issued to employees and consultants under an employee benefit plan. As result, one year after we cease being a shell company, assuming we are current in our reporting requirements with the Securities and Exchange Commission and have filed current “Form 10 information” with the SEC reflecting our status as an entity that is no longer a shell company for a period of not less than 12 months, holders of our restricted securities may then sell those securities in reliance on Rule 144 (provided, however, those holders satisfy all of the applicable requirements of that rule). For us to cease being a “shell company” we must have more than nominal operations and more that nominal assets or assets which do not consist solely of cash or cash equivalents. Shares purchased in this offering, which will be immediately resalable, and sales of all of our other shares if and when applicable restrictions against resale expire, could have a depressive effect on the market price, if any, of our common stock and the shares we are offering.


19



The offering price of the Shares being offered herein has been arbitrarily determined by us and bears no relationship to any criteria of value; as such, investors should not consider the offering price or value to be an indication of the value of the shares being registered.

 

Currently, there is no public market for our Shares.  The offering price for the Shares being registered in this offering has been arbitrarily determined by us and is not based on assets, operations, book or other established criteria of value.  Thus, investors should be aware that the offering price does not reflect the market price or value of our common shares.

 

We may, in the future, issue additional shares of common stock, which would reduce investors’ percent of ownership and may dilute our share value.

 

Our Articles of Incorporation authorize the issuance of 75,000,000 shares of common stock.  As of the date of this prospectus the Company had 15,000,000 shares of common stock outstanding. Accordingly, we may issue up to an additional 60,000,000 shares of common stock. The future issuance of common stock may result in substantial dilution in the percentage of our common stock held by our then existing shareholders. We may value any common stock issued in the future on an arbitrary basis. The issuance of common stock for future services or other corporate actions may have the effect of diluting the value of the shares held by our investors, and might have an adverse effect on any trading market for our common stock.

 

We are subject to compliance with securities law, which exposes us to potential liabilities, including potential rescission rights.

 

We may offer to sell our common stock to investors pursuant to certain exemptions from the registration requirements of the Securities Act of 1933, as well as those of various state securities laws. The basis for relying on such exemptions is factual; that is, the applicability of such exemptions depends upon our conduct and that of those persons contacting prospective investors and making the offering. We may not seek any legal opinion to the effect that any such offering would be exempt from registration under any federal or state law. Instead, we may elect to relay upon the operative facts as the basis for such exemption, including information provided by investor themselves.

 

If any such offering did not qualify for such exemption, an investor would have the right to rescind its purchase of the securities if it so desired. It is possible that if an investor should seek rescission, such investor would succeed. A similar situation prevails under state law in those states where the securities may be offered without registration in reliance on the partial preemption from the registration or qualification provisions of such state statutes under the National Securities Markets Improvement Act of 1996. If investors were successful in seeking rescission, we would face severe financial demands that could adversely affect our business and operations. Additionally, if we did not in fact qualify for the exemptions upon which it has relied, we may become subject to significant fines and penalties imposed by the SEC and state securities agencies.

 

 

 

The parties subject to the subscription agreement waive their right to a trial by jury in any legal proceeding arising out of the subscription agreement.

 

The subscription agreement contains an exclusive forum provision whereby the investors and the company waives their right to a trial by jury in any legal proceeding arising out of the subscription agreement.

“EACH OF THE SUBSCRIBERS AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN ILINOIS NO OTHER PLACE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT MAY BE LITIGATED IN SUCH COURTS. EACH OF SUBSCRIBERS AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE


20



PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT. EACH OF SUBSCRIBERS AND THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 8 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT.

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF, EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.”


21



3.    DILUTION

If you invest in our shares, your interest will be diluted to the extent of the difference between the public offering price per share of our common stock and the as adjusted net tangible book value per share of our capital stock after this Offering. The following table demonstrates the dilution that new investors will experience relative to the company’s net tangible book value as of October 18th, 2018 of $0. Net tangible book value is the aggregate amount of the company’s tangible assets, less its total liabilities. The table presents three scenarios: a $5 million raise from this Offering, a $10 million raise from this Offering and a fully subscribed $15, million raise from this Offering.

 

 

$5000,000 Raise

 

 

$10,000,000 MM Raise

 

 

$15,000,000MM Raise

 

Price per Share

$

5

 

$

5

 

$

5

 

Shares Issued

 

1000,000

 

 

2,000,000

 

 

3,000,000  

 

Capital Raised

$

5,000,000

 

$

10,000,000

 

$

15,000,000

 

Less: Offering Costs

$

(20,000

)

$

(20,000

)

$

(20,000

)

Net Offering Proceeds

$

4,980,000

 

$

9,980,000

 

$

14,980,000

 

Net Tangible Book Value Pre-Financing

$

           0

 

$

0

 

$

0

 

Net Tangible Book Value Post-Financing

$

4,980,000

 

$

9,980,000

 

$

14,980,000

 

 

 

 

 

 

 

 

 

 

 

Shares Issued and Outstanding Pre-Financing as of July 17, 2017

 

15,000,000

 

 

15,000,000

 

 

15,000,000

 

Post-Financing Shares Issued and Outstanding

 

16,000,000

 

 

17,000,000

 

 

18,000,000

 

 

 

 

 

 

 

 

 

 

 

Net Tangible Book Value per Share Prior to Offering

$

.0

 

$

0

 

$

0

 

Net Tangible Book Value per Share After Offering

.3112

 

.5764

 

.8322

 

The following table summarizes the differences between the existing shareholders and the new investors with respect to the number of shares of common stock purchased, the total consideration paid, and the average price per share paid, if the maximum offering price is reached:

Maximum Offering:

 

 

Shares Purchased

 

 

Total Consideration

 

 

Average Price

 

 

 

Number

 

 

Percent

 

 

Amount

 

 

Percent

 

 

Per Share

 

Founders

 

15,000,000

 

 

80%

 

 

100

 

 

1%

 

$

 .00000667

 

New Investors

 

3,000,000

 

 

20%

 

 

18,000,000

 

 

99%

 

$

 5

 

Total

 

18,000,000

 

 

100.0%

 

 

18,000,100

 

 

100.0%

 

$

 5.000006

 

 

Another important way of assessing dilution is the dilution that happens due to future actions by the company. The investor’s stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowd funding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock.

 

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. The company has authorized and issued only one class or type of shares, common stock. Therefore, all of the company’s current shareholders and the investors in this Offering will experience the same dilution if the company decides to issue more shares in the future.


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4.    PLAN OF DISTRIBUTION

 

We are offering a maximum of 3,000,000 shares of common stock on a “best efforts” basis. All subscribers will be instructed by the company or its agents to transfer funds by wire or ACH transfer directly to the company segregated account established for this Offering or deliver checks made payable to Business Lines Corp, the company may terminate the Offering at any time for any reason at its sole discretion.

 

The funds shall be received by BUSINESS LINES CORP’s Special Account (the “Investors Account”) by transfer, the funds shall be immediately available from the sale of shares to us for use in our operation, once the funds received and accepted in the special segregated account, the funds can then be transferred directly to the Company operating account.

 

After the Offering Statement has been qualified by the Securities and Exchange Commission, the company will accept tenders of funds to purchase the shares. The company may close on investments on a “rolling” basis (so not all investors will receive their shares on the same date). The funds tendered by potential investors will be transferred directly to the Company.

We are not currently selling the shares through commissioned sales agents or underwriters. We will use third parties websites, to provide notification of the Offering. Persons who desire information may be directed to a website owned and operated by an unaffiliated third party that provides technology support to issuers engaging in Regulation A offerings. The company didn’t engage a third party platform as of yet.

The company has entered into an agreement with Mr. Andy Altahawi/Adamson Brothers for the provision of filing Reg A tier 2 and structuring for which Adamson Brothers will charge 15,000 for the successful completion of this qualification. Mr. Altahawi is not affiliated with the company or its officers and directors in any way. The company assessed an additional $20,000 cost to market its offering on several crowdfunding platforms, and hiring marketing organizations specialized in such offerings, the assessment is based on the going cost of marketing similar offerings. The company didn’t engage any third party platform as of yet.

You will be required to complete a subscription agreement in order to invest. The subscription agreement includes a representation by the investor to the effect that, if you are not an “accredited investor” as defined under securities law, you are investing an amount that does not exceed the greater of 10% of your annual income or 10% of your net worth (excluding your principal residence).

OUR OFFICERS AND DIRECTORS ARE NOT ENTITLED TO RECEIVE COMMISSIONS OR ANY OTHER REMUNERATION WITH RESPECT TO THEIR SELLING EFFORTS RELATED TO THIS OFFERING.

 

In offering the securities on our behalf, our officer will rely on the safe harbor from broker dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934.

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. Those conditions are as follows:

a.Our officers and directors are not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Act, at the time of their participation; and

b.Our officers and directors will not be compensated in connection with their participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and

c.Our officers and directors are not, nor will they be at the time of their participation in the offering, an associated person of a broker-dealer; and

d.Our officers and directors meet the conditions of paragraph (a)(4)(ii) of Rule 3a4-1 of the Exchange Act, in that they (A) primarily perform, or intend primarily to perform at the end of the offering, substantial duties for or on behalf of our Company, other than in connection with transactions in securities; and (B) are not a broker or dealer, or been associated person of a broker or dealer, within the preceding twelve months; and (C) have not participated in selling and offering securities for any Issuer more than once every twelve months other than in reliance on Paragraphs (a)(4)(i)  and (a)(4)(iii).


23



5.    USE OF PROCEEDS TO ISSUER

 

We estimate that, at a per share price of $5, the net proceeds from the sale of the 3,000,000 shares in this Offering will be approximately $14,980,000, after deducting the estimated offering expenses of up to $20,000.

The net proceeds of this Offering will be used in four key areas: (i) buying new trucks (ii) opening new terminals/wheelhouses/hubs (iii) hiring key members of the management team; and (iv) Marketing;

Accordingly, we expect to use the net proceeds, estimated as discussed above, as follows, if we raise the maximum offering amount:

 

 

Maximum Offering

 

 

 

 

 

Amount

 

 

Percentage

 

 

 

Licensing and permits

$

1,000,000

 

 

         6%

 

 

 

Product devolopment

$

4,000,000

 

 

       26%

 

 

 

Sales & Marketing

$

9,000,000

 

 

    60%

 

 

 

Working Capital (1)

$

980,000

 

 

    6%

 

 

 

Total

$

14,980,000

 

 

100.0%

 

 

 

_________________
(1) A portion of working capital will be used for officers’ salaries.

 

Because the Offering is being made on a “best-efforts” basis, without a minimum offering amount, we may close the Offering without sufficient funds for all the intended proceeds set out above.

 

If the Maximum Offering of 3,000,000 Shares is sold, the net proceeds will be approximately $14,980,000 after deducting estimated offering expenses of $20,000. In the event of an Offering of that size, we expect to use the net proceeds as follows: Approximately $5,000,000 marketing, approximately $4,000,000 for the product devolopment, approximately $1,000,000 for licensing, and $980,000 working capital. Our business plan is scalable, and if we are not able to raise the full amount we will scale back our initial operation proportionate to the amount we are able to raise, and or we shall rely on financing part of our operation.

 

If the Offering size were to be $7.5 million, the net proceeds will be approximately $7,485,000 after deducting estimated offering expenses of up to $15,000. We expect to use the net proceeds as follow: Approximately $2,500,000 for marketing, $2,500,000 product devolopment, $1000,000 licensing and marketing, and $980,000.

If the Offering size were to be $3,750,000, the net proceeds will be approximately $3,735,000 after deducting estimated offering expenses of up to $15,000. We expect to use the net proceeds as follow: Approximately $1,250,000 for marketing, $1,250,000 product devolopment, $500,000 licensing and marketing, and $745,000 working capital.

The foregoing information is an estimate based on our current business plan. We may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category or another, and we will have broad discretion in doing so. Pending these uses, we intend to invest the net proceeds of this Offering in short-term, interest-bearing securities.

The company reserves the right to change the above use of proceeds if management believes it is in the best interests of the company.


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6.    DESCRIPTION OF BUSINESS

Our Company

 

Our Company

Business Lines Corp. (the “Company” or “Business Lines”) was incorporated in the State of Delaware on July 12, 2017. Business Lines principal executive offices are located at 100 Gordon St, Elk Grove Village, IL 60007. Business Lines are implementing a special innovative smart service and mobile APP called OLIMP for the rapid freight delivery with no additional costs and overpayments. OLIMP (Operational Logistics Improvement to Mutual Performance) – is a special Web-platform and mobile APP which let all Transportation business actors increase their performance. The OLIMP’s main idea are based on smart processing of shipping orders, real-time routes optimization with counting constrains and conditions and organization of the virtual network of on-demand warehouses.

OLIMP should be considered as a Business-to-Business-to-Consumer (B2B2C) Internet model due to our servicing all transportation business actors and system users. We will be a technology facilitator by providing the conduit through which clients will communicate one each other without any additional expenses for brokerage and get the best efficiency and cost solution.

For shippers the system will calculate and offer the most efficient routes with competitive cost and best rated carriers.

For carriers OLIMP will be able to provide best priced orders based on routes splits and merges, optimized to use our build virtual warehouses-on-demand network and considering various constrains, such as limited by law drivers daily time-to-drive, truck's filling and moving direction and others.

For warehouse operators our platform lets to increase their facilities utilization by including in virtual warehouses-on-demand network to allow system algorithms create optimized routes for carriers and shippers.

Local distribution option can be useful as for big logistics terminals providing such type of service and for small local carriers working with this type of transportation.

In addition, system will allow using the simplistic mode to direct connection between users, for example, between carrier and warehouse operator for crossdocking operation or temporary cargo keeping.

After realization basic functionality and taking a significant number of clients, we will develop smart contracts functionality based on blockchain technology and BITA (BLOCKCHAIN IN TRANSPORT ALLIANCE) consortium recommendations and standards. Another direction of OLIMP evolution is including of autonomous trucks connectivity into our environment and to develop special add-ons to communicate with these coming soon vehicles.

Our initial marketing efforts will be concentrated in segment of trucking companies up to 25 trucks and small- and middle-size warehouses. However, as part of our long-term goals, we plan to market our services to bigger companies up to 250 trucks and logistics terminals.

We will be developing e-commerce relationships with partners who need high performance transportation service  and looking to online data providers (i.e. Amazon.com, etc.) for reciprocal agreements to share data and users through promotional programs. We intend to expand this affinity program and evaluate potential relationships with new affinity partners in the future as opportunities arise.


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Business Lines is well positioned to capitalize on the explosive growth expected in the LTL and truckload shipping market. Business Lines hopes to meet this demand by continuing its overall strategy: to provide high standard of transportation services and competitive pricing.

Government Regulation

 

Our business is subject to many laws and governmental regulations. Changes in these laws and regulations, or their interpretation by agencies and courts, occur frequently.

 

Investment Company Act of 1940

 

We intend to conduct our operations so that we are not required to register as an investment company under the Investment Company Act of 1940, as amended, or the 1940 Act.

 

Employees:

 

Currently, the company does not have any full-time employees. The company may hire several employees as needed after effectiveness of this offering primarily to support development efforts.

 

Legal Proceedings

 

We know of no existing or pending legal proceedings against us, nor are we involved as a plaintiff in any proceeding or pending litigation. There are no proceedings in which any of our directors, officers or any of their respective affiliates, or any beneficial stockholder, is an adverse party or has a material interest adverse to our interest.


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7.    DESCRIPTION OF PROPERTY

 

Our principal offices are located at 2195 Arthur Avenue, Elk Grove Village, IL 60007.


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8.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

 

Business Lines Corp. (the “Company” or “Business Lines”) was incorporated in the State of Delaware on July 12, 2017. Business Lines principal executive offices are located at 2195 Arthur Avenue, Elk Grove Village, IL 60007. Business Lines are implementing a special innovative smart service and mobile APP called OLIMP for the rapid freight delivery with no additional costs and overpayments. OLIMP (Operational Logistics Improvement to Mutual Performance) – is a special Web-platform and mobile APP which let all Transportation business actors increase their performance. The OLIMP’s main  idea are based on smart  processing of shipping orders, real-time routes optimization with counting constrains and conditions and organization of the virtual network of on-demand warehouses.

Most current trucking operators are independent contractors who are limited in their available duty day because of DOT rest requirements. Drivers are tracked via electronic logbook and must discontinue driving if duty time is exceeded at any given time. Both regional and larger trucking operators are experiencing operating delays due to this restriction. In addition – operators tend to charge heavily for smaller loads (4 pallets or less) – due to minimum costs of delivery - making it unfeasible for smaller businesses to ship less than a predetermined amount set by the operator.  As a result – many shippers are forced to pay a premium to go with operators, such as UPS and FedEx, to provide long haul – as well as local delivery service for smaller shipments.  If a shipper does not sign a contract – major operators are charging a 4.9% rate increase (see recent FedEx and Conway increases).  With 70% of all freight shipped via trucks - LTL shipments are drastically increasing and set to rise much higher.

 

Business Lines is well positioned to capitalize on the explosive growth expected in the LTL and truckload shipping market.  The company has demonstrated its ability to meet and exceed all government standards, operate efficiently, and retain customers – while upgrading their fleet to the most technologically advanced currently on the road.    Business Lines hopes to meet this demand by continuing their overall strategy:  to provide the highest standard of transportation services through safe & timely deliveries, fair & competitive pricing, and a safe workplace for our employees, fairness & honesty with our customers & business partners - while maintaining our integrity.  

 

Through capital infusion and investment – OLIMP should be considered as a Business-to-Business-to-Consumer (B2B2C) Internet model due to our servicing all transportation business actors and system users. We will be a technology facilitator by providing the conduit through which clients will communicate one each other without any additional expenses for brokerage and get the best efficiency and cost solution.

For shippers the system will calculate and offer the most efficient routes with competitive cost and best rated carriers.

For carriers OLIMP will be able to provide best priced orders based on routes splits and merges, optimized to use our build virtual warehouses-on-demand network and taking into account various constrains, such as limited by law drivers daily time-to-drive, truck's filling and moving direction and others.

For warehouse operators our platform lets to increase their facilities utilization by including in virtual warehouses-on-demand network to allow system algorithms create optimized routes for carriers and shippers.

Local distribution option can be useful as for big logistics terminals providing such type of service and for small local carriers working with this type of transportation.

In addition, system will allow using the simplistic mode to direct connection between users, for example, between carrier and warehouse operator for crossdocking operation or temporary cargo keeping.

After realization basic functionality and taking a significant amount of clients, we will develop smart contracts functionality based on blockchain technology and BITA (BLOCKCHAIN IN TRANSPORT


28



ALLIANCE) consortium recommendations and standards. Another direction of OLIMP evolution is including of autonomous trucks connectivity into our environment and to develop special add-ons to communicate with these coming soon vehicles.

Our initial marketing efforts will be concentrated in segment of trucking companies up to 25 trucks and small- and middle-size warehouses. However, as part of our long-term goals, we plan to market our services to bigger companies up to 250 trucks and logistics terminals.

We will be developing e-commerce relationships with partners who need high performance transportation service  and looking to online data providers (i.e. Amazon.com, etc.) for reciprocal agreements to share data and users through promotional programs. We intend to expand this affinity program and evaluate potential relationships with new affinity partners in the future as opportunities arise.

Business Lines is well positioned to capitalize on the explosive growth expected in the LTL and truckload shipping market. Business Lines hopes to meet this demand by continuing its overall strategy: to provide high standard of transportation services and competitive pricing.

Operating Results

 

As of June 30th, 2018, we have generated $1,465,363 in revenue and incurred expenses of $1,462,908. Our operating expenses consist of cost of revenue, and general operational cost. As a result, our net profit for the period from inception through January 1st, 2018 to June 30, 2018 was $2,455.

 

To meet our need for cash we are attempting to raise money from this offering. The maximum aggregate amount of this offering will be required to fully implement our business plan. If we are unable to successfully generate revenue we may quickly use up the proceeds from this offering and will need to find alternative sources. If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash or cease operations entirely. 

 

Liquidity and Capital Resources

 

As of June 30, 2018, the Company had $24,045 in cash and total liabilities of $0.0 As of June 30, 2018, the Company has incurred total expenses of $1,462,908 related entirely to operation expenses. In management’s opinion, the Company’s cash position is insufficient to maintain its operations at the current level for the next 12 months. We are attempting to raise funds to proceed with our plan of operation. The Company hopes to raise $15,000,000 in this Offering. If we are successful at raising the maximum amount of this offering, we believe that such funds will be enough to fund our expenses over the next twelve months.

 

We are highly dependent upon the success of this offering, as described herein. Therefore, the failure thereof would result in the need to seek capital from other resources such as taking loans, which would likely not even be possible for the Company. However, if such financing were available, because we are a development stage company with no operations to date, we would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing. If the Company cannot raise additional proceeds via a private placement of its equity or debt securities, or secure a loan, the Company would be required to cease business operations. As a result, investors would lose all their investment.

 

Off-Balance Sheet Arrangements

 

As of June 30th, 2018, we did not have any off-balance sheet arrangements.

 

Plan of Operations

Over the next twelve months, the Company intends to execute on the proposed business plan and the implementation of our own proprietary handling fully computerized algorithms. The computerized algorithm


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is fully developed, owned and available to the company at its commencement of its operation, which allows us to have a continuous flawless delivery methodology in place. We will incur certain risks, including the expenditure of funds on, and the devotion of management's time to, our technology has inherited risks and might not deliver the expected results.   


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9.    DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES

 

The board of directors elects our executive officers annually.  A majority vote of the directors who are in office is required to fill vacancies.  Each director shall be elected for the term of one year, and until her successor is elected and qualified, or until her earlier resignation or removal. Our directors and executive officers are as follows:

 

The table below lists our directors and executive officers, their ages, and the date of their first appointment to such positions. Each position is currently held with an indefinite term of office.

 

                 Name

                           Position

 

Date of First

 

 

 

Appointment

Vladislav Gasnikov

 

Chief Executive Officer Director

 

         July 12, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Vladislav Gasnikov/CEO

 

Mr. Gasnikov is a retired military officer. He headed transportation operations for BMW, and was the manager of assembly production of Renault in Europe. Mr. Gasnikov was the head of the logistics department for BMW outsourcing and has years of experience in connecting logistical demands. He founded VLAD with one truck and grew it current fleet of 53 dry vans and 80 dry commodity trailers. Mr. Gasnikov is dissolving VLAD to focus 100% of his time in Business Lines growth, and the company has no plan to purchase VLAD assets nor from Mr. Gasnikov.


Board Composition

 

Our Bylaws provide that the Board of Directors shall consist of no more than two (2) directors. Each director of the Company serves until his successor is elected and qualified, subject to removal by the Company’s majority shareholders. Each officer shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined by the Board of Directors, and shall hold his office until his successor is elected and qualified, or until his earlier resignation or removal.

 

Potential Conflicts of Interest


Since we do not have a compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation and audit issues that may affect management decisions. We are not aware of any other conflicts of interest with any of our executives or directors.

 

Director Independence


Our board of directors has undertaken a review of the independence of each director and considered whether any director has a material relationship with us that could compromise his ability to exercise independent judgment in carrying out his responsibilities. As a result of this review, our board of directors determined that our directors do not meet the independence requirements, according to the applicable rules and regulations of the SEC.

 

 

Corporate Governance

 

There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for that purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that


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our current business affairs are simple, any such committees are excessive and beyond the scope of our business and needs.

 

Family Relationships

 

None.

 

Involvement in Certain Legal Proceedings

 

No officer, director, or persons nominated for such positions, promoter or significant employee has been involved in the last ten years in any of the following:

 

-Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time, 

 

-Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses), 

 

-Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting her involvement in any type of business, securities or banking activities, 

 

-Being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. 

 

-Having any government agency, administrative agency, or administrative court impose an administrative finding, order, decree, or sanction against them as a result of their involvement in any type of business, securities, or banking activity. 

 

-Being the subject of a pending administrative proceeding related to their involvement in any type of business, securities, or banking activity. 

 

-Having any administrative proceeding been threatened against you related to their involvement in any type of business, securities, or banking activity. 

 

Significant Employees

None.


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10.   COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

 

The following table sets forth information about the annual compensation of each of our three highest-paid persons who were directors or executive officers during our last completed fiscal year.

 

 

Cash

Other

Total

 

Capacities in which

compensation

compensation

compensation

           Name

compensation was received

($)

($)

($)

Vladislav Gasnikov

CEO, Director

$60,000

-0-

$60,000

 

 

 

 

 

 

 

 

 

 

 

Compensation of Directors

 

We do not compensate our directors for attendance at meetings. We reimburse our officers and directors for reasonable expenses incurred during the course of their performance. We have no long-term incentive plans. We will start compensating our CEO Mr. Vladislav Gasnikov with a fixed annual salary of $60,000 post offering.


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11.   SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

 

The following tables set forth the ownership, as of the date of this prospectus, of our common stock by each person known by us to be the beneficial owner of more than 5% of our outstanding common stock, our directors, and our executive officers and directors as a group.  To the best of our knowledge, the persons named have sole voting and investment power with respect to such shares, except as otherwise noted.  There are not any pending or anticipated arrangements that may cause a change in control.

 

The information presented below regarding beneficial ownership of our voting securities has been presented in accordance with the rules of the Securities and Exchange Commission and is not necessarily indicative of ownership for any other purpose. Under these rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within 60 days through the conversion or exercise of any convertible security, warrant, option or other right. More than one person may be deemed to be a beneficial owner of the same securities. The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number of shares beneficially owned by such person, which includes the number of shares as to which such person has the right to acquire voting or investment power within 60 days, by the sum of the number of shares outstanding as of such date plus the number of shares as to which such person has the right to acquire voting or investment power within 60 days. Consequently, the denominator used for calculating such percentage may be different for each beneficial owner. Except as otherwise indicated below and under applicable community property laws, we believe that the beneficial owners of our common stock listed below have sole voting and investment power with respect to the shares shown.

 

 

 

 

 

Amount and

 

 

 

 

 

 

Amount and

 

 

nature of

 

 

 

 

 

 

nature of

 

 

beneficial

 

 

Percent

 

Name and address of beneficial

 

beneficial

 

 

ownership

 

 

of class

 

owner (1)

 

ownership (2)

 

 

acquirable

 

 

(3)

 

Vladislav Gasnikov

 

15,000,000

 

 

-0-

 

 

100%

 

All directors and officers as a
group (1 person)

 

 

 

 

-0-

 

 

100%

 

 

 

(1)

The address of those listed is 2195 Arthur Avenue, Elk Grove Village, IL 60007

 

(2)

Unless otherwise indicated, all shares are owned directly by the beneficial owner.

 

(3)

Based on 15,000,000 shares outstanding prior to this Offering.


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12.   INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS

 

During the last fiscal year, there have been no transactions, or proposed transactions, which have materially affected or will materially affect us in which any director, executive officer or beneficial holder of more than 5% of the outstanding common, or any of their respective relatives, spouses, associates or affiliates, has had or will have any direct or material indirect interest. We have no policy regarding entering into transactions with affiliated parties.

 

Conflicts of Interest and Corporate Opportunities

 

The officers and directors have acknowledged that under Delaware law that they must present to the Company any business opportunity presented to them as an individual that met Delaware's standard for a corporate opportunity:  (1) the corporation is financially able to exploit the opportunity; (2) the opportunity is within the corporation's line of business; (3) the corporation has an interest or expectancy in the opportunity; and (4) by taking the opportunity for his own, the corporate fiduciary will thereby be placed in a position inimical to their duties to the corporation. This is enforceable and binding upon the officers and directors as it is part of the Code of Ethics that every officer and director is required to execute.  However, the Company has not adopted formal written policies or procedures regarding the process for how these corporate opportunities are to be presented to the Board.  It is the Company’s intention to adopt such policies and procedures in the immediate future.


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13.   SECURITIES BEING OFFERED

 

 

Our authorized capital stock consists of seventy five million (75,000,000) shares of common Stock, par value $0.0001 per share (the common Stock”). As of July 17, 2017, we had fifteen million (15,000,000) shares of stock outstanding.

The following is a summary of the rights of our capital stock as provided in our certificate of incorporation, and bylaws. For more detailed information, please see our articles of incorporation and bylaws, which have been filed as exhibits to the Offering Statement of which this Offering Circular is a part.

Common Stock

Voting Rights. (a)Voting Rights. (i) Except as otherwise provided in the charter or the bylaws or by applicable law, the holders of shares of common Stock shall at all times vote together as one class on all matters (including the election of directors) submitted to a vote or for the consent of the stockholders of the Corporation. (ii) Each holder of shares of the common Stock shall be entitled to one (1) vote for each share of common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose. 

Dividends. Subject to preferences that may be applicable to any then-outstanding preferred stock (in the event we create preferred stock), holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds.

Liquidation Rights. In the event of our liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock that may be created in the future.

Other Rights. Holders of common stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that we may create in the future.

Transfer Agent and Registrar

TBD

Share Eligible for Future Sale

 

Prior to this offering, there was no public market for our common stock. We cannot predict the effect, if any, that market sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common stock. Sales of substantial amounts of our common stock in the public market could adversely affect the market prices of our common stock and could impair our future ability to raise capital through the sale of our equity securities.

 

We have outstanding an aggregate of 15,000,000 shares of our common stock. None of these shares will be freely tradable without restriction or further registration under the Securities Act, unless those shares are purchased by our affiliates, as that term is defined in Rule 144 under the Securities Act.


36



The 15,000,000 shares of common stock outstanding after this offering will be restricted as a result of securities laws. Restricted securities may be sold in the public market only if they have been registered or if they qualify for an exemption from registration under Rule 144 under the Securities Act.

 

The 3,000,000 shares being offered are qualified for future sale pursuant to this offering qualification per Tier 2 of Regulation A promulgated under the Securities Act of 1933

 

Rule 144

 

A person who has beneficially owned restricted shares of common stock for at least six months would be entitled to sell their shares provided that (1) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding, a sale and (2) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale. Persons who have beneficially owned restricted shares of common stock for at least six months but who are our affiliates at the time of, or any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period a number of shares that does not exceed the greater of either of the following:

•      1% of the number of shares then outstanding, which will equal 150,000 shares of common stock immediately after this offering (or 150,000 shares of common stock if the over-allotment option is exercised in full); and

•      the average weekly trading volume of the shares of common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

Sales under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about us.

 

Restrictions on the Use of Rule 144 by Shell Companies or Former Shell Companies

Rule 144 is not available for the resale of securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell company. However, Rule 144 also includes an important exception to this prohibition if the following conditions are met:

•      the issuer of the securities that was formerly a shell company has ceased to be a shell company;

•      the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;

•      the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and

•      at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.


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Picture 4 


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Picture 5 


39



Picture 6 


40



Picture 7 


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Picture 8 


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Picture 9 


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Picture 10 


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Picture 11 


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Picture 12 


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Picture 13 


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Picture 1 


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15. INDEX TO EXHIBITS

 

 

 

 

Exhibit 2.1 Certificate of Incorporation*

Exhibit 2.2 Bylaws*

Exhibit 2.3 Form of Subscription Agreement – Amended*

Exhibit 2.4 Opinion re legality*

Exhibit 2.5 Consent Accountant*

 

Previously submitted.  


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Business Lines Corp.

 

16.  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 Chicago and County of State of Illinois, on September 18, 2018.

 

Business Lines Corp.

 

 

/s/ Vladislav Gasnikov

 

By:

 

 

 

Name:

Vladislav Gasnikov

 

 

Title:

Chief Executive Officer and Director

 

 

(Principal Executive, Financial and Accounting Officer)

 

In accordance with the requirements of the Securities Act of 1933, this registration statement was signed by the following persons in the capacities and on the dates stated.

 

Signature

 

Title

 

Date

/s/ Vladislav Gasnikov

 

 

 

 September 18, 2018

Vladislav Gasnikov

 

 

 

 

 

 

Director and Chief Executive Officer (Principal Executive, Financial and Accounting Officer)

 

 


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