9. Subsequent events

9 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Note 9 . Subsequent events

9. Subsequent events

On April 22, 2013, our Company issued a convertible promissory note to an accredited investor totaling $100,000. The note has a term of 2 years, and bears interest at a rate of 15% per annum, with 5% payable in cash and the remaining 10% per annum payable in stock at the conversion rate of seventy cents per share; both on a quarterly basis. The note holder will also have the option to convert the outstanding balance into stock at any time during the term of the Note at an exercise price of seventy cents per share.

Effective April 29, 2013, our Company has appointed Clifton Leung as the Chief Executive Officer of the Company. Mr. Leung is also currently a member of the Board of Directors of the Company. In addition, Mr. Leung was the original President and CEO of the Company’s wholly-owned subsidiary, Sugarmade, Inc., as a private company in 2009, prior to when the Company acquired it on May 9, 2011. Also effective April 29, 2013, Scott Lantz resigned as the Chief Executive Officer. Mr. Lantz continues in his roles as President, Chief Financial Officer and a member of the Board of Directors.

On May 9, 2013, the Company entered into a Share Cancellation Agreement with Scott Lantz pursuant to which Mr. Lantz agreed to the cancellation of 1,300,000 of his shares of Company common stock. Mr. Lantz is the President, Chief Financial Officer and a Director of the Company. In consideration for the surrender, our Company agreed to pay Mr. Lantz $130.