Item 3.02 Unregistered Sales of Equity Securities
On January 20, 2021, FOMO CORP. ("FOMO") entered into a third-party loan
agreement for $205,000, netting the Company $180,000 after OID (original issue
discount) of $20,000 and legal expenses of $5,000. Terms and conditions of the
loan and attached common stock purchase warrants are herein attached as Exhibits
10.1 and 10.2. As part of the financing, FOMO also issued the third-party lender
ten million restricted shares of common stock. The loan has a buyout option
during the six months after closing which management intends to pursue, though
there can be no assurances.
Item 3.03 Material Modification to Rights of Security Holders
On January 20, 2021, FOMO CORP. retired a $115,000 third-party loan that was
funded October 28, 2020 for $128,800, which included one year of accrued
interest as per contract. The loan had a cap on its conversion into common stock
at a per share price of $0.0007. As a result, the third-party loan and an
attached 164,285,714 common stock purchase warrants, with a strike price of
$0.0007, have been extinguished. At current market prices, this action removed
348,285,714 potential shares of dilution from the capital stack of the Company.
The third-party loan document and warrant agreement can be located in Exhibit
10.18 of the Company's Form 10-K for calendar year 2019, which was filed on the
SEC's EDGAR system on December 7, 2020.
Item 9.01. Exhibits
(a) Exhibits. The following exhibit is filed with this Current Report on Form
8-K:
Exhibit No. Description
10.1 FOMO CORP. GS Capital $205,000 Debenture - January 20, 2021
10.2 FOMO CORP. GS Capital Warrant Agreement - January 20, 2021
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