Quarterly report pursuant to Section 13 or 15(d)

10. STOCKHOLDERS' EQUITY

v3.21.1
10. STOCKHOLDERS' EQUITY
9 Months Ended
Feb. 28, 2021
Notes  
10. STOCKHOLDERS' EQUITY

10. STOCKHOLDERS’ EQUITY 

 

Common Stock

 

The Company is authorized to issue 800,000,000 shares of stock, a par value of $0.001 per share.

 

During the nine months ended February 28, 2021, the Company issued 28,291,180 shares of the Company’s Common Stock to a consultant. The shares have an aggregated fair value of approximately $91,666 which was expensed immediately.

 

As of February 28, 2021 and May 31, 2020, there were 358,286,791 and 0 shares of Common Stock issued and outstanding, respectively.

 

Series A Convertible Preferred

 

The Company has designated 130,000 shares of preferred stock as Series A Preferred Stock, $0.001 par value per share (the “Series A Preferred”). The holders of Series A Preferred, subject to the rights of holders of shares of the Company’s Series B Preferred Stock, which shares will be pari passu with the Series A Preferred in terms of liquidation preference and dividend rights, shall be entitled to receive, at their option, immediately prior and in preference to any distribution to the holders of the Company’s common stock. $0.001 par value per share and other junior securities, a liquidation preference equal to the stated value per share. Each share of Series A Preferred shall have a stated value equal to $0.001. Each share of Series A Preferred Stock can be converted into 6,546.47 shares of the Company’s authorized but unissued shares of Common Stock.

 

Share amounts at February 28, 2021 have been retroactively restated to account for the share exchange in connection with reverse merger. As of February 28, 2021 and May 31, 2020, there were 130,000 shares of Series A Preferred Stock issued and outstanding.

 

Series B Convertible Preferred

 

The Company has designated 870,000 shares of preferred stock as Series B Preferred Stock, $0.001 par value per share (the “Series B Preferred”). The holders of Series B Preferred, subject to the rights of holders of shares of the Company’s Series A Preferred Stock which shares will be pari passu with the Series B Preferred in terms of liquidation preference and dividend rights, shall be entitled to receive, at their option, immediately prior an in preference to any distribution to the holders of the Company’s common stock. $0.001 par value per share and other junior securities, a liquidation preference equal to the stated value per share. Each share of Series B Preferred shall have a stated value equal to $0.001. Each share of Series A Preferred can be converted into 6,546.47 shares of the Company’s authorized but unissued shares of Common Stock.

 

As noted above, on October 9, 2020, the Company’s Chief Executive Officer converted 30,000 shares of Series B Preferred Stock into an aggregate of 196,394,100 shares of the Company’s common stock.

 

Share amounts at February 28, 2021 have been retroactively restated to account for the share exchange in connection with reverse merger. As of February 28, 2021 and May 31, 2020, there were 840,000 and 870,000 shares of Series B Preferred Stock issued and outstanding, respectively.

 

Warrants

 

The following is a summary of the Company’s warrant activity:

 

 

 

 

Weighted Average

 

Warrants

 

Exercise Price

Outstanding – May 31, 2020

-

$

-

Exercisable – May 31, 2020

-

$

-

Granted

1,140,956,904

$

0.002

Outstanding – February 28, 2021

1,140,956,904

$

0.002

Exercisable – February 28, 2021

1,140,956,904

$

0.002

 

 

Warrants Outstanding

 

Warrants Exercisable

 

Exercise

Price

 

Number

Outstanding

 

Weighted

Average

Remaining

Contractual

Life (in years)

 

Weighted

Average

Exercise

Price

 

Number

Exercisable

 

Weighted

Average

Exercise

Price

$

0.002

 

1,140,956,904

 

4.61

$

0.002

 

1,140,956,904

$

0.002

 

At February 28, 2021, the total intrinsic value of warrants outstanding and exercisable was $305,838,062.