claims,\ue000 which\ue000 was\ue000 conducted\ue000 in\ue000 November,\ue000 2007.\ue000 The\ue000 Co\ue000 mpany\ue000 received\ue000 a\ue000 geologist\ue000 report\ue000 on\ue000 February\ue000 6,\ue000 2008,\ue000 the\ue000 results
of\ue000 which\ue000 were\ue000 not\ue000 as\ue000 expected,\ue000 and\ue000 the\ue000 Company\ue000 re-evaluated\ue000 proceeding\ue000 with\ue000 a\ue000 Phase\ue000 2\ue000 work\ue000 program,\ue000 which\ue000 would\ue000 cost
CDN$15,000.\ue000 Given\ue000 the\ue000 prospects,\ue000 management\ue000 determined\ue000 to\ue000 allow\ue000 the\ue000 claims\ue000 to\ue000 lapse\ue000 on\ue000 July\ue000 29,\ue000 2008.
Please\ue000 see\ue000 our\ue000 annual\ue000 report\ue000 on\ue000 Form\ue000 10-KSB\ue000 for\ue000 the\ue000 year\ue000 ended\ue000 June\ue000 30,\ue000 2008\ue000 for\ue000 more\ue000 information\ue000 relating\ue000 to\ue000 our\ue000 business
prior\ue000 to\ue000 the\ue000 acquisition\ue000 of\ue000 Omnicity\ue000 Indiana.
The\ue000 Omnicity\ue000 Indiana\ue000 Acquisition
On\ue000 February\ue000 16,\ue000 2009,\ue000 we\ue000 closed\ue000 the\ue000 acquisition\ue000 (the\ue000 "Acquisition")\ue000 of\ue000 Omnicity\ue000 Indiana,\ue000 effected\ue000 by\ue000 way\ue000 of\ue000 merger\ue000 pursuant
to\ue000 an\ue000 Agreement\ue000 and\ue000 Plan\ue000 of\ue000 Merger\ue000 (the\ue000 "Agreement"),\ue000 dated\ue000 December\ue000 29,\ue000 2008,\ue000 among\ue000 Omnicity\ue000 Corp.,\ue000 Omnicity
Indiana,\ue000 and\ue000 MergerSub,\ue000 our\ue000 wholly-owned\ue000 subsidiary\ue000 incorporated\ue000 under\ue000 the\ue000 laws\ue000 of\ue000 the\ue000 State\ue000 of\ue000 Indiana\ue000 in\ue000 connection\ue000 with
the\ue000 Acquisition\ue000 ("MergerSub").\ue000 The\ue000 merger\ue000 was\ue000 effective\ue000 on\ue000 February\ue000 17,\ue000 2009\ue000 and\ue000 time\ue000 at\ue000 which\ue000 the\ue000 merger\ue000 became
effective\ue000 is\ue000 referred\ue000 to\ue000 herein\ue000 as\ue000 the\ue000 "Effective\ue000 Time".\ue000 At\ue000 the\ue000 Effective\ue000 Time,\ue000 MergerSub\ue000 merged\ue000 with\ue000 and\ue000 into\ue000 Omnicity
Indiana,\ue000 pursuant\ue000 to\ue000 which\ue000 the\ue000 identity\ue000 and\ue000 separate\ue000 corporate\ue000 existence\ue000 of\ue000 MergerSub\ue000 ceased\ue000 and\ue000 Omnicity\ue000 Indiana\ue000 became
the\ue000 surviving\ue000 corporation\ue000 in\ue000 the\ue000 merger\ue000 (the\ue000 "Surviving\ue000 Corporation")\ue000 and\ue000 a\ue000 wholly-owned\ue000 subsidiary\ue000 of\ue000 the\ue000 Company.
-\ue000 3\ue000 -
Omnicity\ue000 Indiana\ue000 convened\ue000 a\ue000 special\ue000 meeting\ue000 of\ue000 its\ue000 shareholders\ue000 on\ue000 January\ue000 17,\ue000 2009\ue000 to\ue000 obtain\ue000 approval\ue000 of\ue000 the\ue000 adoption\ue000 of
the\ue000 Agreement,\ue000 the\ue000 Acquisition\ue000 and\ue000 all\ue000 other\ue000 transactions\ue000 contemplated\ue000 thereby\ue000 (the\ue000 "Special\ue000 Meeting").\ue000 At\ue000 the\ue000 Special
Meeting,\ue000 Omnicity\ue000 Indiana\ue000 obtained\ue000 the\ue000 required\ue000 approvals\ue000 of\ue000 the\ue000 holders\ue000 of\ue000 a\ue000 majority\ue000 of\ue000 its\ue000 common\ue000 shares.
Under\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 Agreement,\ue000 at\ue000 closing,\ue000 (i)\ue000 all\ue000 of\ue000 the\ue000 issued\ue000 and\ue000 outstanding\ue000 Omnicity\ue000 Indiana\ue000 shares,\ue000 totaling\ue000 8,256,240,
were\ue000 converted\ue000 and\ue000 exchanged\ue000 for\ue000 23,000,000\ue000 shares\ue000 of\ue000 the\ue000 Company,\ue000 or\ue000 2.7858\ue000 common\ue000 shares\ue000 of\ue000 the\ue000 Company\ue000 for\ue000 each
Omnicity\ue000 Indiana\ue000 share\ue000 held;\ue000 each\ue000 common\ue000 share\ue000 issued\ue000 had\ue000 a\ue000 deemed\ue000 fair\ue000 value\ue000 of\ue000 $0.35\ue000 per\ue000 share,\ue000 in\ue000 accordance\ue000 with\ue000 the
procedures\ue000 set\ue000 out\ue000 in\ue000 the\ue000 Agreement,\ue000 (ii)\ue000 each\ue000 share\ue000 of\ue000 Omnicity\ue000 Indiana\ue000 issued\ue000 and\ue000 outstanding\ue000 immediately\ue000 prior\ue000 to\ue000 the
Effective\ue000 Time\ue000 and\ue000 owned\ue000 by\ue000 Omnicity\ue000 Corp.\ue000 or\ue000 MergerSub\ue000 was\ue000 cancelled\ue000 and\ue000 extinguished\ue000 without\ue000 any\ue000 conversion\ue000 thereof
and\ue000 no\ue000 payment\ue000 was\ue000 made\ue000 with\ue000 respect\ue000 thereto,\ue000 and\ue000 (iii)\ue000 all\ue000 issued\ue000 and\ue000 outstanding\ue000 shares\ue000 of\ue000 common\ue000 stock\ue000 of\ue000 MergerSub
held\ue000 by\ue000 Omnicity\ue000 Corp.\ue000 immediately\ue000 prior\ue000 to\ue000 the\ue000 Effective\ue000 Time\ue000 were\ue000 converted\ue000 into\ue000 and\ue000 became\ue000 one\ue000 validly\ue000 issued,\ue000 fully\ue000 paid
and\ue000 non-assessable\ue000 share\ue000 of\ue000 common\ue000 stock\ue000 of\ue000 Omnicity\ue000 Indiana.
Pursuant\ue000 to\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 Agreement\ue000 on\ue000 and\ue000 after\ue000 the\ue000 Effective\ue000 Time,\ue000 (i)\ue000 until\ue000 surrendered\ue000 for\ue000 exchange,\ue000 each\ue000 outstanding
share\ue000 certificate\ue000 representing\ue000 shares\ue000 of\ue000 Omnicity\ue000 Indiana's\ue000 common\ue000 stock\ue000 (except\ue000 for\ue000 shares\ue000 cancelled\ue000 pursuant\ue000 to\ue000 the
provisions\ue000 of\ue000 the\ue000 Agreement)\ue000 are\ue000 deemed\ue000 to\ue000 evidence\ue000 ownership\ue000 of\ue000 and\ue000 represent\ue000 the\ue000 number\ue000 of\ue000 shares\ue000 of\ue000 the\ue000 Company\ue000 into
which\ue000 such\ue000 Omnicity\ue000 Indiana\ue000 common\ue000 shares\ue000 shall\ue000 convert\ue000 pursuant\ue000 to\ue000 the\ue000 Agreement,\ue000 and\ue000 (ii)\ue000 each\ue000 holder\ue000 of\ue000 such\ue000 outstanding
certificates\ue000 representing\ue000 shares\ue000 of\ue000 Omnicity\ue000 Indiana's\ue000 common\ue000 stock\ue000 are\ue000 entitled\ue000 to\ue000 vote\ue000 on\ue000 any\ue000 matters\ue000 on\ue000 which\ue000 the\ue000 holders
of\ue000 record\ue000 of\ue000 the\ue000 Company's\ue000 common\ue000 shares\ue000 having\ue000 voting\ue000 rights\ue000 are\ue000 entitled\ue000 to\ue000 vote.
At\ue000 closing,\ue000 (i)\ue000 all\ue000 the\ue000 property,\ue000 rights,\ue000 privileges,\ue000 powers\ue000 and\ue000 franchises\ue000 of\ue000 Omnicity\ue000 Indiana\ue000 and\ue000 MergerSub\ue000 vested\ue000 in\ue000 the
Surviving\ue000 Corporation,\ue000 and\ue000 all\ue000 debts,\ue000 liabilities\ue000 and\ue000 duties\ue000 of\ue000 Omnicity\ue000 Indiana\ue000 and\ue000 MergerSub\ue000 became\ue000 the\ue000 debts,\ue000 liabilities\ue000 and
duties\ue000 of\ue000 the\ue000 Surviving\ue000 Corporation,\ue000 (ii)\ue000 the\ue000 articles\ue000 of\ue000 incorporation\ue000 of\ue000 MergerSub\ue000 became\ue000 the\ue000 articles\ue000 of\ue000 incorporation\ue000 of\ue000 the
Surviving\ue000 Corporation,\ue000 (iii)\ue000 the\ue000 bylaws\ue000 of\ue000 MergerSub\ue000 became\ue000 the\ue000 bylaws\ue000 of\ue000 the\ue000 Surviving\ue000 Corporation,\ue000 and\ue000 (v)\ue000 the\ue000 name\ue000 of\ue000 the
Surviving\ue000 Corporation\ue000 became\ue000 "Omnicity,\ue000 Incorporated".
The\ue000 Company\ue000 is\ue000 in\ue000 the\ue000 process\ue000 of\ue000 raising\ue000 approximately\ue000 US$315,000\ue000 by\ue000 way\ue000 of\ue000 a\ue000 private\ue000 placement\ue000 of\ue000 units\ue000 of\ue000 the\ue000 Company
at\ue000 a\ue000 price\ue000 of\ue000 $0.35\ue000 per\ue000 unit\ue000 (the\ue000 "Private\ue000 Placement").\ue000 In\ue000 addition,\ue000 prior\ue000 to\ue000 closing,\ue000 certain\ue000 investors\ue000 (the\ue000 "Company\ue000 Creditors")
acquired\ue000 convertible\ue000 debentures\ue000 directly\ue000 from\ue000 Omnicity\ue000 Indiana\ue000 in\ue000 the\ue000 amount\ue000 of\ue000 US$60,000.\ue000 Under\ue000 the\ue000 terms\ue000 of\ue000 a\ue000 debt
conversion\ue000 agreement\ue000 to\ue000 be\ue000 entered\ue000 into\ue000 with\ue000 the\ue000 Company\ue000 Creditors,\ue000 all\ue000 amounts\ue000 owing\ue000 to\ue000 the\ue000 Company\ue000 Creditors\ue000 will\ue000 be
converted\ue000 to\ue000 units\ue000 of\ue000 the\ue000 Company\ue000 having\ue000 the\ue000 same\ue000 terms\ue000 as\ue000 the\ue000 units\ue000 issued\ue000 under\ue000 the\ue000 Private\ue000 Placement.\ue000 Each\ue000 unit\ue000 will
consist\ue000 of\ue000 one\ue000 common\ue000 share\ue000 of\ue000 the\ue000 Company\ue000 and\ue000 one-half\ue000 of\ue000 one\ue000 non-transferable\ue000 share\ue000 purchase\ue000 warrant.\ue000 Each\ue000 whole
warrant\ue000 will\ue000 be\ue000 exercisable\ue000 for\ue000 one\ue000 common\ue000 share\ue000 of\ue000 the\ue000 Company\ue000 at\ue000 a\ue000 price\ue000 of\ue000 $0.50\ue000 per\ue000 share\ue000 for\ue000 a\ue000 period\ue000 of\ue000 two\ue000 years
from\ue000 the\ue000 date\ue000 of\ue000 issuance.
Following\ue000 the\ue000 closing,\ue000 but\ue000 prior\ue000 to\ue000 issuing\ue000 securities\ue000 to\ue000 the\ue000 vendors\ue000 in\ue000 the\ue000 asset\ue000 acquisitions\ue000 discussed\ue000 under\ue000 "Recent\ue000 Events"
and\ue000 under\ue000 the\ue000 Private\ue000 Placement\ue000 and\ue000 debt\ue000 conversions\ue000 when\ue000 closed\ue000 subsequently,\ue000 Omnicity\ue000 Corp.\ue000 shareholders\ue000 owned
Processed and formatted by SEC Watch - Visit SECWatch.com
Leave a Comment