Published On: Wed, Jun 29th, 2016

Carolco Pictures Inc (OTCMKTS:CRCO) Signs Stock Purchase Agreement With South Center Inc

Carolco Pictures Inc (OTCMKTS:CRCO) has announced that it has entered into a stock purchase agreement with South Center Inc. As such, CRCO would issue a total of 5 million shares of its series A preferred stock to the CEO of South Center, Tarek Kirschen. Each share carries a purchase price of $0.0001.

Although the agreement would provide the company with $500 in proceeds, Mr. Kirschen would be allowed to sell the series A preferred shares to South Center for a total of $150,000. Furthermore, South Center would also become the controlling shareholder of the Carolco Pictures. However, the agreement is still subject to certain closing conditions. First and foremost, Mr. Kirschen was to be awarded a total of 1 million series B preferred shares, which would also carry a share price of $0.0001.

It should be noted here that Carolco Pictures owes Mr. Kirschen an estimated $438,000. As per the release and issuance agreement, signed prior to the stock purchase agreement, Mr. Kirschen would forgive the debt; in return for the series B preferred shares. Furthermore, each of the series B preferred stock is convertible into two shares of the company’s common stock. On the other hand, each of the series A shares carries voting rights equal to a hundred common shares. On the completion of the transaction, South Center would have 62.42% of the voting power.

Given that David Cohen is the sole shareholder of South Center Inc and South Center would control majority of the voting power, Mr. Cohen was named the CEO and a director of the company. The new appointment was also closely followed by the departure of Leonard Lauren and Mr. Kirschen, from the board of directors. It should be noted here that their departure was not associated with any disagreements with the company or the changes in management.

Carolco Pictures Inc (OTCMKTS:CRCO) recorded a loss of 20% in terms of its share value, during the June 28 trading session. The stock closed at a share price of $0.0004, after having a trade volume of 26.85 million, during the trading session.

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