Capital Stock

6 Months Ended

Dec. 31, 2015

Capital Stock

Capital Stock

8.     CAPITAL STOCK

At December 31, 2015 the Company’s authorized stock consists of 2,000,000,000 shares of common stock, par value $0.001 per share. At December 31, 2014 the Company’s authorized stock consists of 495,000,000 shares of common stock, par value $0.001 per share The Company is also authorized to issue 5,000,000 shares of preferred stock, par value of $0.001 per share.  The rights, preferences and privileges of the holders of the preferred stock will be determined by the Board of Directors prior to issuance of such shares. The Company has designated 10,000 shares of its preferred stock as Series A Convertible Preferred Stock and 20,000 shares of its preferred stock as Series B Preferred Stock . Each share of Series A Preferred stock is convertible into 10,000 shares of the Company’s common stock. The holders of outstanding shares of Series A Preferred Stock shall be entitled to receive dividends, payable quarterly, out of any assets of the Corporation legally available therefor, at the rate of Eight dollars ($8) per share per annum, payable in preference and priority to any payment of any dividend on the Common Stock. Each share of Series B Preferred Stock shall have a stated value of $100.00 The Series B Preferred Stock is convertible into shares of fully paid and non-assessable shares of the Company's common stock by dividing the Stated Value by a conversion price of $0.004 per share. The holders of outstanding shares of the Series B Preferred Stock shall be entitled to receive dividends, payable when Series B Preferred Stock is converted to Common Stock, out of any assets of the Corporation legally available at the rate of 10% per annum based on the Share Value, The right to such dividends on the Series B Preferred Stock shall be cumulative.  At the sole option of the Holder, dividends can be converted into Common Stock at the Conversion Price.  Series B Preferred shall not be entitled to vote, as a separate class or otherwise, on any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation.

On October 1, 2015, the Company completed the acquisition of Indaba Group, LLC, a Colorado limited liability company. The Company paid two million dollars ($2,000,000) for the acquisition in the form of ten thousand (10,000) shares of the Company's Series A Convertible Preferred Stock, at a liquidation preference of two hundred dollars ($200) per share. The Company has accrued $20,000 in dividends payable as of December 31, 2015.