American Exploration Corporation (OTCPK: AEXP) entered into a letter of intent to acquire 90% stake in Celtic Biotech Ltd. in May 2013. American Exploration made a deposit of $0.003 million in May 2013 and further made a deposit of $0.006 million in August 2013.

In a related transaction, Spotlight Innovation acquired American Exploration Corporation in a reverse merger transaction on December 10, 2013. As of December 31, 2013, Spotlight Innovation, Inc. (OTCPK: STLT) made deposits of $0.012 million to acquire 90% stake in Celtic Biotech. Spotlight Innovation will issue as full consideration under the acquisition agreement, 0.116 million Class B Preferred Shares of Spotlight Innovation, Inc.'s available preferred stock. The transaction is expected to close during the six months ended June 30, 2014.

Spotlight Innovation, Inc. entered into a share exchange agreement to acquire 95% stake in Celtic Biotech Ltd. for $2.2 million on June 4, 2014. Spotlight Innovation, Inc. issued 0.47 million shares of its Preferred B Stock as consideration. The preferred shares issued are convertible into common shares of Spotlight Innovation, Inc. on a one for one basis and are redeemable at Spotlight's option in five years at the stated par value of $5 per share. The transaction is subject to approval by the 95% shareholders of Celtic Biotech, resignations signed for all existing officers and Directors of Celtic Biotech and carrying due diligence review of Celtic Biotech.