Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Agreements of Certain Officers
Effective September 30, 2020, a change of control occurred with respect to Arial
Clean Energy Inc., a Delaware corporation ("Company"). Pursuant to a Securities
Purchase Agreement ("Agreement") dated September 30, 2020 by and among Mr. Yu
Yang, an individual, as Buyer, Nexus BioFuel, Inc., a British Columbia
corporation ("Nexus BioFuel") and SeaMorri Financial Partners, LLC, a Texas
limited liability company ("SeaMorri"), as "Sellers" and the Company, Mr. Yang
acquired all of the shares of Class A common stock of the Sellers as indicated
below ("Acquired Shares");
Seller # of Acquired Shares
SeaMorri 80,000,000
Nexus BioFuel 13,531,000
93,531,000
The Acquired Shares represent82.55% of the total issued and outstanding Class A
common stock of the Company.
In addition pursuant to the Agreement, BioNexus assigned to Mr. Yang all of its
rights, titles and interests in and to certain loans made by BioNexus to the
Company totaling $86,250, plus accrued interest. These amounts include certain
outstanding payables made by BioNexus at closing. The total consideration paid
by Mr. Yang was $330,000 which were funds from Buyer. The Agreement contained
customary representations, warranties, covenants and conditions by the Company.
On the Closing Date, Mr. Delbert Seabrook, the sole officer of the Company,
resigned in all officer capacities from the Company and Mr. Yang was appointed
Chief (Principal) Executive Officer, President, Chief (Principal) Financial
Officer and Treasurer the Company. In addition, Mr. Yang was be appointed a
director of the Company.
Effective upon the 10th day after the mailing of the Company's information
statement on Schedule 14f-1 (the "Schedule 14f-1") to the Company's stockholders
(the "Appointment Date"), Mr. Seabrook will resign as a director of the Company.
On that same date, Mr. Yang will be appointed as the Company's Chairman of the
Board of the Company.
New Executive Officer and Director.
Name Age Position
Yu Yang 37 President, Chief Executive Officer,Chief
Financial Officer and Director
Mr. Yu Yang currently is, and has been for the past seven years, the Chairman of
Chitose International Industrial Group Co. Ltd. ("Chitose") which is a medium
and large industrial holding company in China. Chitose headquarters are in
Beijing, however it maintains offices throughout China. Mr. Yang brings 10 years
of management experience to the Company. He holds a Master's Degree in
Philosophy from Peking University.
There is no arrangement or understanding between the new officer and director
and any other persons pursuant to which new officer and director was selected as
a director of the Company. The Company has not determined what if any committee
the new officer and director will serve on behalf of the Company. There have
been no transactions since the beginning of our last fiscal year, or any
currently proposed transaction, in which we were or are to be a participant,
exceeding $120,000 and in which our new director had or will have a direct or
indirect material interest. There is no material plan, contract or arrangement
(whether or not written) to which our new officer and director is a party or in
which he participates that is entered into or a material amendment in connection
with the triggering event or any grant or award to any such covered person or
modification thereto, under any such plan, contract or arrangement in connection
with any such event. There are no arrangements, known to the registrant,
including any pledge by any person of securities of the Company or any of its
parents, the operation of which may at a subsequent date result in a change in
control of the Company.
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
After giving effect to the above described transaction, the following table
lists, as of the date of this report, the number of shares of common stock of
our Company that are beneficially owned by (i) each person or entity known to
our Company to be the beneficial owner of more than 5% of the outstanding common
stock; (ii) each officer and director of our Company; and (iii) all officers and
directors as a group.
Unless otherwise indicated, each person named in the following table is assumed
to have sole voting power and investment power with respect to all shares of our
common stock listed as owned by such person. The address of each person is
deemed to be the address of the issuer unless otherwise noted. The percentage of
common stock held by each listed person is based on 113,296,421 shares of Class
A common stock outstanding as of September 30, 2020. Pursuant to Rule 13d-3
promulgated under the Exchange Act, any securities not outstanding which are
subject to warrants, rights or conversion privileges exercisable within 60 days
are deemed to be outstanding for purposes of computing the percentage of
outstanding securities of the class owned by such person but are not deemed to
be outstanding for the purposes of computing the percentage of any other person.
Amount and
Nature
of Beneficial Percent of
Name of Beneficial Owner Owner Class
Officers and Directors
Yu Yang 93,531,000 82.55 %
All officers and directors as a group (1 individual) 93,531,000 82.55 %
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