Item 1.01. Entry into a Material Definitive Agreement.
On January 13, 2022, Gabbit Corp., a Nevada corporation ("Gabbit") entered into
a Stock Purchase, Loan and Security Agreement Binding Term Sheet (the "Term
Sheet "), by and among Gabbit and Odlum Data Investments LLC, a Delaware limited
liability company ("Odlum"), pursuant to which Gabbit agreed to issue shares of
common stock representing eighty percent (80%) of the total outstanding shares
of Gabbit on a fully diluted basis, to Odlum in exchange for the issuance of
$10,000,000.00 USD in debt in the form of a letter of credit (the "Loan") made
by Odlum for the benefit of Gabbit, to be used by Gabbit exclusively for the
purchase of Bitcoin mining hardware, to pay Odlum's legal and other expenses
related to the Loan, and for other purposes determined by the Gabbit Board of
Directors.
The Loan accrues interest at 6.5% per annum, is secured by a first lien on all
Gabbit's current and future assets, including but not limited to, the Bitcoin
mining hardware to be purchased with the proceeds of the Loan. The Loan matures
on the earlier of the six-month anniversary of the Loan, an equity or debt
refinancing or change of control of Gabbit, with all accrued interest, together
with principal being due and payable at maturity.
Under the terms of the Term Sheet in consideration for the Loan, Gabbit has
agreed to issue to Odlum (and certain of his designees) 16,000,000 shares of
Gabbit's common stock, par value $0.001.
The parties expect to enter a definitive agreement which contains
representations and warranties customary for transactions of this type,
including repayment terms, grant of liens and security interests in Gabbit
assets, anti-dilution provisions for Gabbit shareholders, other than Odlum and
representations and warranties by Odlum and Gabbit.
In addition, on January 18, 2022, Messrs. Adam Laufer and Nader Panahpour
resigned as co-CEOs of Gabbit and Mr. Pavan Charan, resigned as CFO of Gabbit
and as a member of Gabbit's Board of Directors. Contemporaneous with Messrs.
Laufer, Panahpour and Charan's resignations and in accordance with Nevada
Revised Statues (NRS) sec.78.335, Mr. Andrew Dover was appointed as CEO of
Gabbit and as chairman of Gabbit's Board of Directors.
In connection with the issuance of Gabbit shares to Odlum, Mr. Laufer shall
cancel certain shares owned by him personally, to effect the agreed upon
ownership structure of Gabbit.
Item 2.01. Completion of Acquisition or Disposition of Assets.
The information set forth in Item 1.01 of this Current Report on Form 8-K is
incorporated into this Item 2.01 by reference.
Item 3.02. Unregistered Sales of Equity Securities.
The information set forth in Item 1.01 of this Current Report on Form 8-K is
incorporated into this Item 3.02 by reference.
Item 5.01. Changes in Control of Registrant.
The information set forth in Items 1.01 and 5.02 of this Current Report on Form
8-K is incorporated into this Item 5.01 by reference.
2
Departure of Directors or Certain Officers; Election of Directors;
Item 5.02. Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
In connection with and subsequent to the Loan by and between Gabbit and Odlum
and contemporaneous to Messrs. Laufer and Panahpour's resignation as co-CEO's of
Gabbit and Mr. Charan's resignation as CFO and from Gabbit's Board of Directors.
The Gabbit Board of Directors in accordance with Nevada Revised Statues (NRS)
sec.78.335, appointed Andrew Dover, President and Chief Executive Officer of
Gabbit and as Chairman of Gabbit's the Board of Directors.
Andrew Dover. Mr. Dover is the founder and managing partner of Odlum Capital,
where he is responsible for setting the firm's global asset strategy and
managing the firm. Since founding Odlum Capital, Mr. Dover has also founded the
Appalachian EB-5 Regional Center, an economic development program. Prior to
founding Odlum, Mr. Dover was the CEO of the Joe Torre Foundation in New York
City. Before his tenure at the foundation, he served as a senior vice-president
at UBS. He started his investment career at Merrill Lynch. Mr. Dover holds a BA
in Philosophy from Yale University, an MPA from Harvard University's John F.
Kennedy School of Government, and a Diploma in Organizational Leadership from
the University of Oxford. In addition, he was a Fellow of the Center for Social
Innovation (CSI) at the Stanford
Family Relationships
There are no familial relationships between Mr. Dover and Messrs. Laufer, Nader
and or Mr. Charan
Transactions with Related Persons, Promoters and Certain Control Persons
Other than with respect to the transactions disclosed herein, we have not been a
party to any transaction, proposed transaction, or series of transactions in
which the amount involved exceeds the lesser of $120,000 or one percent of our
average total assets for the last two fiscal years, and in which, to our
knowledge, with Messrs.
There are presently no material plans, contracts or arrangements (whether or not
written) that provide for any grant or award to Mr. Dover or any of the
registrant's officers or directors.
© Edgar Online, source Glimpses