U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1
to
FORM 10
GENERAL FORM FOR REGISTRATION OF SECURITIES
Pursuant to Section 12(b) or (g) of
the Securities Exchange Act of 1934
ENTREE ACQUISITION CORPORATION
-----------------------------
(Exact name of registrant as specified in its charter)
Delaware 00-0000000
------------------ ------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) No.)
215 Apolena Avenue
Newport Beach, California 92662
------------------------------------------------------------
(Address of principal executive offices ) (Zip Code)
Registrant's telephone number, including area code: 202/387-5400
Fax Number: 949/673-4525
Securities to be registered
pursuant to Section 12(b) of the Act: None
Securities to be registered
pursuant to Section 12(g) of the Act: Common Stock,
$0.0001 Par Value
(Title of class)
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of "large accelerated
filer," "accelerated filer," and "smaller reporting company"
in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filed Smaller reporting company X
The Company may qualify as an "emerging growth company" as defined
in the Jumpstart Our Business Startups Act which became law in April,
2012. See "The Company: The Jumpstart Our Business Startups Act"
contained herein.
______________________________________________________________________
ITEM 1. BUSINESS.
Entree Acquisition Corporation ("Entree") was incorporated
on April 23, 2012 under the laws of the State of Delaware to engage in
any lawful corporate undertaking, including, but not limited to, selected
mergers and acquisitions. Entree has been in the developmental stage
since inception and its operations to date have been limited to issuing
shares to its original shareholders and filing this registration statement.
Entree has been formed to provide a method for a foreign or domestic
private company to become a reporting company with a class of securities
registered under the Securities Exchange Act of 1934.
The president of Entree is the president, director and shareholder
of Tiber Creek Corporation. Tiber Creek Corporation assists companies
in becoming public reporting companies and with introductions to the
financial community. To become a public company, Tiber Creek
Corporation may recommend that a company file a registration statement,
most likely on Form S-1, or alternatively that a company first effect a
business combination with Entree and then subsequently file a
registration statement. A company may choose to effect a business
combination with Entree before filing a registration statement as such
method may be an effective way to obtain exposure to the brokerage
community.
Tiber Creek will typically neogtiate an agreement with a target
company for assisting it to become a public reporting
company and for the preparation and filing of a registration statement
and for its introduction to brokers and market makers. The target
company and Tiber Creek will negotiate a fee for such services.
Such services may include, when and if appropriate, the use of Entree.
Entree will only be used as part of such process and is not offered
for sale. If the target company chooses to enter into a business
combination with Entree, after the completion of such business
combination, a registration statement will be prepared
and filed.
A combination will normally take the form of a merger, stock-for-stock
exchange or stock-for-assets exchange. In most instances the target
company will wish to structure the business combination to be within the
definition of a tax-free reorganization under Section 351 or Section 368
of the Internal Revenue Code of 1986, as amended.
No assurances can be given that Entree will be successful in
locating or negotiating with any target company.
Entree has not generated revenues and has no income or cash
flows from operations since inception. The continuation of Entree
as a going concern is dependent upon financial support from its
stockholders, its ability to obtain necessary equity financing to
1
______________________________________________________________________
continue operations, to successfully locate and negotiate with a business
entity for the combination of that target company with Entree. Tiber
Creek Corporation will pay without repayment or reimbursement all
expenses incurred by Entree until a change in control is effected
after which time such expenses will become the responsibility of the
new controlling management of Entree. There is no assurance that
Entree will ever be profitable.
There is no written agreement between Tiber Creek Corporation and
Entree. Tiber Creek is owned by James Cassidy and James Cassidy is also
one of the two shareholders and directors of Entree. Through
Mr. Cassidy, there is an unwritten understanding that Tiber Creek will
fund the expenses of Entree until a change in control. Because of
the nature of the Entree and its absence of any on-going operations,
these expenses are anticipated to be relatively low.
Jumpstart Our Business Startups Act
In April, 2012, the Jumpstart Our Business Startups Act ("JOBS
Act") was enacted into law. The JOBS Act provides, among other things:
Exemptions for emerging growth companies from certain financial
disclosure and governance requirements for up to five years and
provides a new form of financing to small companies;
Amendments to certain provisions of the federal securities laws to
simplify the sale of securities and increase the threshold number of
record holders required to trigger the reporting requirements of the
Securities Exchange Act of 1934;
Relaxation of the general solicitation and general advertising
prohibition for Rule 506 offerings;
Adoption of a new exemption for public offerings of securities in
amounts not exceeding $50 million; and
Exemption from registration by a non-reporting company offers
and sales of securities of up to $1,000,000 that comply with rules
to be adopted by the SEC pursuant to Section 4(6) of the
Securities Act and such sales are exempt from state law
registration, documentation or offering requirements.
In general, under the JOBS Act a company is an emerging growth
company if its initial public offering ("IPO") of common equity securities
was effected after December 8, 2011 and the company had less than $1
billion of total annual gross revenues during its last completed fiscal
year. A company will not longer qualify as an emerging growth company after
the earliest of
(i) the completion of the fiscal year in which the company has total
annual gross revenues of $1 billion or more,
(ii) the completion of the fiscal year of the fifth anniversary of the
company's IPO;
(iii) the company's issuance of more than $1 billion in
nonconvertible debt in the prior three-year period, or
(iv) the company becoming a "larger accelerated filer" as defined
under the Securities Exchange Act of 1934.
The Company meets the definition of an emerging growth
company will be affected by some of the changes provided in the JOBS
Act and certain of the new exemptions. The JOBS Act provides
additional new guidelines and exemptions for non-reporting companies
and for non-public offerings. Those exemptions that impact the Company
are discussed below.
2
______________________________________________________________________
Financial Disclosure. The financial disclosure in a registration
statement filed by an emerging growth company pursuant to the Securities
Act of 1933 will differ from registration statements filed by other
companies as follows:
(i) audited financial statements required for only two fiscal years;
(ii) selected financial data required for only the fiscal years that
were audited;
(iii) executive compensation only needs to be presented in the
limited format now required for smaller reporting companies. (A
smaller reporting company is one with a public float of less than
$75 million as of the last day of its most recently completed
second fiscal quarter)
However, the requirements for financial disclosure provided by
Regulation S-K promulgated by the Rules and Regulations of the SEC already
provide certain of these exemptions for smaller reporting companies. The
Company is a smaller reporting company. Currently a smaller reporting
company is not required to file as part of its registration statement
selected financial data and only needs audited financial statements for
its two most current fiscal years and no tabular disclosure of contractual
obligations.
The JOBS Act also exempts the Company's independent registered
public accounting firm from complying with any rules adopted by the
Public Company Accounting Oversight Board ("PCAOB") after the date
of the JOBS Act's enactment, except as otherwise required by SEC rule.
The JOBS Act also exempts an emerging growth company from any
requirement adopted by the PCAOB for mandatory rotation of the Company's
accounting firm or for a supplemental auditor report about the audit.
Internal Control Attestation. The JOBS Act also provides an
exemption from the requirement of the Company's independent registered
public accounting firm to file a report on the Company's internal control
over financial reporting, although management of the Company is still
required to file its report on the adequacy of the Company's internal
control over financial reporting.
Section 102(a) of the JOBS Act goes on to exempt emerging
growth companies from the requirements in 1934 Act Section 14A(e) for
companies with a class of securities registered under the 1934 Act to hold
shareholder votes for executive compensation and golden parachutes.
Other Items of the JOBS Act. The JOBS Act also provides that an
emerging growth company can communicate with potential investors that
are qualified institutional buyers or institutions that are accredited to
determine interest in a contemplated offering either prior to or after the
date of filing the respective registration statement. The Act also permits
research reports by a broker or dealer about an emerging growth company
regardless if such report provides sufficient information for an investment
decision. In addition the JOBS Act precludes the SEC and FINRA from
adopting certain restrictive rules or regulations regarding brokers, dealers
and potential investors, communications with management and
distribution of a research reports on the emerging growth company IPO.
Section 106 of the JOBS Act permits emerging growth companies
to submit 1933 Act registration statements on a confidential basis
provided that the registration statement and all amendments are publicly
filed at least 21 days before the issuer conducts any road show. This is
intended to allow the emerging growth company to explore the IPO
option without disclosing to the market the fact that it is seeking to go
public or disclosing the information contained in its registration statement
until the company is ready to conduct a roadshow.
3
______________________________________________________________________
Election to Opt Out of Transition Period. Section 102(b)(1) of the
JOBS Act exempts emerging growth companies from being required to comply
with new or revised financial accounting standards until private companies
(that is, those that have not had a 1933 Act registration statement declared
effective or do not have a class of securities registered under the 1934
Act) are required to comply with the new or revised financial accounting
standard.
The JOBS Act provides a company can elect to opt out of the extended
transition period and comply with the requirements that apply to non-
emerging growth companies but any such an election to opt out is irrevocable.
The Company has elected not to opt out of the transition period.
Aspects of a Reporting Company
There are certain perceived benefits to being a reporting company.
These are commonly thought to include the following:
+ increased visibility in the financial community;
+ compliance with a requirement for admission to quotation on
the OTC Bulletin Board;
+ the facilitation of borrowing from financial institutions;
+ increased valuation;
+ greater ease in raising capital;
+ compensation of key employees through stock options for
which there may be a market valuation;
+ enhanced corporate image.
There are also certain perceived disadvantages to being a reporting
company. These are commonly thought to include the following:
+ requirement for audited financial statements;
+ required publication of corporate information;
+ required filings of periodic and episodic reports with the
Securities and Exchange Commission;
+ increased rules and regulations governing management,
corporate activities and shareholder relations.
Comparison with Direct Public Offering
Certain private companies may find the use of a business combination
with a public reporting company prior to filing its initial public offering
attractive for several reasons including:
+ easier to obtain an underwriter;
+ establishment of a public record and public filings for use with
FINRA application;
+ possible delays in the public offering process;
+ greater visibility to the financial community.
Certain private companies may find a business combination less
attractive than an initial public offering of their securities. Reasons
for this may include the following:
4
______________________________________________________________________
+ no investment capital raised through a business combination;
+ no underwriter support of trading;
+ increased expenses for meeting reporting requirements.
Potential Target Companies
Business entities, if any, which may be interested in a combination
with Entree may include the following:
+ a company for which a primary purpose of becoming public is
the use of its securities for the acquisition of assets
or businesses;
+ a company which is unable to find an underwriter of its
securities or is unable to find an underwriter of
securities on terms acceptable to it;
+ a company which wishes to become public with less dilution
of its securities than would occur upon an underwriting;
+ a company which believes that it will be able to obtain
investment capital on more favorable terms after it has
become public;
+ a foreign company which may wish an initial entry into the
United States securities market;
+ a special situation company, such as a company seeking a
public market to satisfy redemption requirements under
a qualified Employee Stock Option Plan;
+ a company seeking one or more of the other perceived
benefits of becoming a public company.
A business combination with a target company will normally involve
the transfer to the target company of the majority of the issued and
outstanding common stock of Entree and the substitution by the target
company of its own management and board of directors.
No assurances can be given that Entree will be able to enter into
any business combination, as to the terms of a business combination, or as
to the nature of a target company.
The proposed business activities described herein classify Entree
as a "blank check" company. The Securities and Exchange Commission and
certain states have enacted statutes, rules and regulations limiting the
public sale of securities of blank check companies. Entree will not
make any efforts to cause a market to develop in its securities until such
time as Entree has successfully implemented a business combination
and it is no longer classified as a blank check company.
Entree is voluntarily filing this registration statement with the
Securities and Exchange Commission and is under no obligation to do so
5
______________________________________________________________________
under the Exchange Act. Entree will continue to file all reports
required of it under the Exchange Act until a business combination has
occurred. A business combination will normally result in a change in
control and management of Entree. Since a principal benefit of a
business combination with Entree would normally be considered its
status as a reporting company, it is anticipated that Entree will
continue to file reports under the Exchange Act following a business
combination. No assurance can be given that this will occur or, if it
does, for how long.
James Cassidy is the president and a director of Entree and
the sole officer, shareholder and director of Tiber Creek Corporation,
which is a 50% shareholder of Entree. James McKillop is the vice
president and a director of Entree and the sole manager and member
of MB Americus LLC which is a 50% shareholder of Entree.
Entree has no employees nor are there any other persons than
Mr. Cassidy and Mr. McKillop who devote any of their time to its affairs.
All references herein to management of Entree are to Mr. Cassidy and
Mr. McKillop. The inability at any time of either of these individuals
to devote sufficient attention to Entree could have a material adverse
impact on its operations.
Glossary
"Blank check" company As used herein, a "blank check" company
is a development stage company that has
no specific business plan or purpose or
has indicated that its business plan is
to engage in a merger or acquisition with
an unidentified company or companies.
Business combination Normally a merger, stock-for-stock or
stock-for-assets exchange with the target
company or the shareholders of the target
company.
Emerging Growth Company A company with an initial public offering
of common equity securities that effected
after December 8, 2011 and has less than
$1 billion of total annual gross revenues
during last ocmpleted fiscal yeaer.
Entree or The corporation whose common stock is the
the Registrant subject of this registration statement.
Exchange Act The Securities Exchange Act of 1934, as
amended.
Securities Act The Securities Act of 1933, as amended.
6
______________________________________________________________________
ITEM 1A. RISK FACTORS
The business of Entree is subject to numerous risk factors, including
the following:
Entree has no operating history nor revenue with minimal
assets and operates at a loss and its continuation as a going concern is
dependent uponsupport from its stockholders or obtaining additional
capital.
Entree has had no operating history nor any revenues or earnings
from operations. Entree has no significant assets or financial
resources. Entree has not generated revenues and has no income
or cash flows from operations since inception. Entree has sustained
losses to date and will, in all likelihood, continue to sustain
expenses without corresponding revenues, at least until the consummation
of a business combination.
The continuation of Entree as a going concern is dependent upon
financial support from its stockholders, the ability of the Company to
obtain necessary equity financing to continue operations, successfully
locating and negotiate with a business entity for the combination of that
target company with Entree. Tiber Creek Corporation, a company
affiliated with management, will pay all expenses incurred by Entree
until a business combination is effected, without repayment. There is no
assurance that Entree will ever be profitable.
Company has only two directors, officers and shareholders
The only officers and directors of Entree are James Cassidy
and James McKillop. Because management consists of only these two
persons, Entree does not benefit from multiple judgments that a
greater number of directors or officers would provide. Entree will
rely completely on the judgment of its officers and directors when
selecting a target company. Mr. Cassidy and Mr. McKillop anticipate
devoting only a limited amount of time to the business of Entree.
Neither Mr. Cassidy nor Mr. Mr. McKillop has entered into written
employment agreements with Entree and they are not expected to do
so. Entree has not obtained key man life insurance on either officer or
director. The loss of the services of either Mr. Cassidy or Mr. McKillop
could adversely affect development of the business of Entree and its
likelihood of commencing operations.
The Company's election not to opt out of JOBS Act extended
accounting transition period may not make its financial statements
easily comparable to other companies.
Pursuant to the JOBS Act of 2012, as an emerging growth
company the Company can elect to opt out of the extended transition
period for any new or revised accounting standards that may be issued by
the PCAOB or the SEC. The Company has elected not to opt out of such
extended transition period which means that when a standard is issued or
revised and it has different application dates for public or private
companies, the Company, as an emerging growth company, can adopt the
standard for the private company. This may make comparison of the
Company's financial statements with any other public company which is
not either an emerging growth company nor an emerging growth company
which has opted out of using the extended transition period difficult or
impossible as possible different or revised standards may be used.
7
______________________________________________________________________
Conflicts of interest.
Mr. Cassidy, the president of Entree, participates in other
business ventures which may compete directly with Entree. Additional
conflicts of interest and non-arms length transactions may also arise
in the future. The terms of a business combination may include such terms
as Tiber Creek Corporation providing services to Entree after a business
combination. Such services may include the preparation and filing of a
registration statement to allow the public trading of Entree's
securities and the introduction to brokers and market makers. Such
benefits may influence management's choice of a target company. The
certificate of incorporation of Entree provides that Entree may
indemnify officers and/or directors of Entree for liabilities, which can
include liabilities arising under the securities laws. Assets of Entree
could be used or attached to satisfy any liabilities subject to such
indemnification.
The proposed operations of Entree are speculative.
The success of the proposed business plan of Entree will depend to
a great extent on the operations, financial condition and management of
the identified target company. While business combinations with entities
having established operating histories are preferred, there can be no
assurance that Entree will be successful in locating candidates
meeting such criteria. The decision to enter into a business combination
will likely be made without detailed feasibility studies, independent
analysis, market surveys or similar information which, if Entree had
more funds available to it, would be desirable. In the event Entree
completes a business combination the success of its operations will be
dependent upon management of the target company and numerous other
factors beyond the control of Entree. There is no assurance that
Entree can identify a target company and consummate a business
combination.
The Company will seek only one business combination and as such
there is no diversification of investment.
The purpose of Entree is to seek, and acquire an interest in a
business entity which desires to seek the perceived advantages of a
corporation which has a class of securities registered under the Exchange
Act. Entree may participate in a business venture of virtually any
kind or nature and it will not restrict its search to any specific business,
industry, or geographical location. Management anticipates that
Entree will be able to participate in only one potential business
venture because Entree has nominal assets and limited financial
resources. This lack of diversification should be considered a substantial
risk to the shareholders of Entree because it will not permit
Entree to offset potential losses from one venture against gains from
another.
8
______________________________________________________________________
Possible classification as a penny stock.
In the event that a public market develops for the securities of
Entree following a business combination, such securities may be
classified as a penny stock depending upon their market price and the
manner in which they are traded. The Securities and Exchange
Commission has adopted Rule 15g-9 which establishes the definition of a
"penny stock", for purposes relevant to Entree, as any equity security
that has a market price of less than $5.00 per share or with an exercise
price of less than $5.00 per share whose securities are admitted to
quotation but do not trade on the Nasdaq Capital Market or on a national
securities exchange. For any transaction involving a penny stock, unless
exempt, the rules require delivery by the broker of a document to investors
stating the risks of investment in penny stocks, the possible lack of
liquidity, commissions to be paid, current quotation and investors' rights
and remedies, a special suitability inquiry, regular reporting to the
investor and other requirements.
There is a scarcity of and competition for business opportunities
and combinations.
Entree is and will continue to be an insignificant participant in
the business of seeking mergers with and acquisitions of business entities.
A large number of established and well-financed entities, including
venture capital firms, are active in mergers and acquisitions of
companies which may be merger or acquisition target candidates for
Entree. Nearly all such entities have significantly greater financial
resources, technical expertise and managerial capabilities than Entree
and, consequently, Entree will be at a competitive disadvantage in
identifying possible business opportunities and successfully completing a
business combination. Moreover, Entree will also
compete with numerous other small public companies in seeking merger
or acquisition candidates.
There is no agreement for a business combination and no minimum
requirements for business combination.
Tiber Creek is continually in discussion with various entities who
are considering the use of a reporting company as part of the process of
going public. As of the date of this registration statement, Entree
has no current arrangement, agreement or understanding with respect
to engaging in a business combination with a specific entity. When,
if at all, Entree enters into a business combination it will file
the required reports with the Securities and Exchange Commission. There
can be no assurance that Entree will be successful in identifying and
evaluating suitable business opportunities or in concluding a business
combination. No particular industry or specific business within an
industry has been selected for a target company. Entree has not
established a specific length of operating history or a specified level
of earnings, assets, net worth or other criteria which it will require a
target company to have achieved, or without which Entree would not
consider a business combination with such business entity. Accordingly,
9
______________________________________________________________________
Entree may enter into a business combination with a business entity
having no significant operating history, losses, limited or no potential
for immediate earnings, limited assets, negative net worth or other
negative characteristics. There is no assurance that Entree will be
able to negotiate a business combination on terms favorable to Entree.
Reporting requirements may delay or preclude acquisition.
Pursuant to the requirements of Section 13 of the Exchange Act,
Entree is required to provide certain information about significant
acquisitions including audited financial statements of the acquired
company. Obtaining audited financial statements is the economic
responsibility of the target company. The additional time and costs that
may be incurred by some potential target companies to prepare such
financial statements may significantly delay or essentially preclude
consummation of an otherwise desirable acquisition by Entree.
Prospects that do not have or are unable to obtain the required audited
statements may not be appropriate for acquisition so long as the reporting
requirements of the Exchange Act are applicable.
Notwithstanding a target company's agreement to obtain audited financial
statements within the required time frame, such audited financial
statements may not be available to Entree at the time of entering into
an agreement for a business combination. In cases where audited financial
statements are unavailable, Entree will have to rely upon information
that has not been verified by outside auditors in making its decision to
engage in a transaction with the business entity. This risk increases the
prospect that a business combination with such a target company might
prove to be an unfavorable one for Entree.
Regulation under Investment Company Act.
In the event Entree engages in business combinations which result
in Entree holding passive investment interests in a number of entities,
Entree could be subject to regulation under the Investment Company
Act of 1940. Passive investment interests, as used in the Investment
Company Act, essentially means investments held by entities which do not
provide management or consulting services or are not involved in the
business whose securities are held. In such event, Entree would be
required to register as an investment company and could be expected to
incur significant registration and compliance costs. Entree has
obtained no formal determination from the Securities and Exchange
Commission as to the status of Entree under the Investment Company
Act of 1940. Any violation of such Act could subject Entree to
material adverse consequences.
10
______________________________________________________________________
Probable change in control and management.
A business combination involving the issuance of the common stock of
Entree will, in all likelihood, result in shareholders of a target
company obtaining a controlling interest in Entree. As a condition of
the business combination agreement, the shareholders of Entree may
agree to sell, transfer or retire all or a portion of their stock of
Entree to provide the target company with all or majority control.
The resulting change in control of Entree will likely result in removal
of the present officers and directors of Entree and a corresponding
reduction in or elimination of their participation in the future affairs
of Entree.
Possible change in value of shares upon business combination.
A business combination normally will involve the issuance of a
significant number of additional shares. Depending upon the value of the
assets acquired in such business combination, the per share value of the
common stock of Entree may increase or decrease, perhaps
significantly.
Federal and state tax consequences will, in all likelihood, be major
considerations in any business combination Entree may
undertake.
Currently, such transactions may be structured so as to result in
tax-free treatment to both companies, pursuant to various federal and
state tax provisions. Entree intends to structure any business
combination so as to minimize the federal and state tax consequences to
both Entree and the target company; however, there can be no assurance
that such business combination will meet the statutory requirements of a
tax-free reorganization or that the parties will obtain the intended
tax-free treatment upon a transfer of stock or assets. A non-qualifying
reorganization could result in the imposition of both federal and state
taxes which may have an adverse effect on both parties to the transaction.
Any potential acquisition or merger with a foreign company may
create additional risks.
If Entree enters into a business combination with a foreign
concern it will be subject to risks inherent in business operations outside
of the United States. These risks include, for example, currency
fluctuations, regulatory problems, punitive tariffs, unstable local tax
policies, trade embargoes, risks related to shipment of raw materials and
finished goods across national borders and cultural and language
differences. Foreign economies may differ favorably or unfavorably from
the United States economy in growth of gross national product, rate of
inflation, market development, rate of savings, capital investment,
11
______________________________________________________________________
resource self-sufficiency, balance of payments positions, and in other
respects. Any business combination with a foreign company may result in
control of Entree by individuals who are not resident in the United
States and in assets which are located outside the United States, either
of which could significantly reduce the ability of the shareholders to
seek or enforce legal remedies against Entree.
ITEM 2. FINANCIAL INFORMATION
PLAN OF OPERATION.
Entree has had no operating history nor any revenues or earnings
from operations. Entree has no significant assets or financial
resources. The Company has not generated revenues and has no income or
cash flows from operations since inception. Entree has sustained
losses to date and will, in all likelihood, continue to sustain expenses
without corresponding revenues, at least until the consummation of a
business combination.
The continuation of the Company as a going concern is dependent
upon financial support from its stockholders, the ability of the Company
to obtain necessary equity financing to continue operations, successfully
locating and negotiate with a business entity for the combination of that
target company with Entree. Tiber Creek Corporation, a company
affiliated with management, will pay all expenses incurred by Entree
until a business combination is effected, without repayment although no
loan agreement or other contract has been entered into regarding such
payment by Tiber Creek.
There is no assurance that Entree will ever be profitable.
Entree has no operations nor does it currently engage in any
business activities generating revenues. Entree's principal business
objective for the following 12 months is to achieve a business combination
with a target company.
Entree anticipates that during the 12 months following the date of
this registration statement, it will incur costs related to (i) filing
reports as required by the Securities Exchange Acct of 1934, including
accounting fee and (ii) payment of annual corporate fees. It is
anticipated that such expenses will not exceed $5,000 although Tiber Creek
has not set a limit on the amount of expenses it will pay on behalf of
Entree. Tiber Creek Corporation will pay all expenses of the Company
without repayment until such timeas a business combination is effected.
There is no written agreement between Tiber Creek Corporation and
Entree. Tiber Creek is owned by James Cassidy and James Cassidy is also
one of the two shareholders and directors of Entree. Through
Mr. Cassidy, there is an unwritten understanding that Tiber Creek will
fund the expenses of Entree until the consummation of a business
combination. Because of the nature of Entree and its absence
of any on-going operations, these expenses are anticipated to be
relatively low.
12
______________________________________________________________________
Search for Target Company
Tiber Creek Corporation will supervise the search for target companies
as potential candidates for a business combination. Tiber Creek is always
in various stages of discussion with potential target companies. At the
time that it appears that one of these companies may retain Tiber Creek
and use a reporting company, then the reporting company will make an
appropriate filing.
Tiber Creek Corporation has entered, and anticipates that it will enter,
into agreements with consultants to assist it in locating a target company
and may share stock received by it or an affiliate in Entree with, or
grant options on such stock to, such referring consultants and may make
payment to such consultants from its own resources. There is no
minimum or maximum amount of stock, options, or cash that Tiber Creek
Corporation may grant or pay to such consultants. Tiber Creek
Corporation is solely responsible for the costs and expenses of its
activities in seeking a potential target company, including any agreements
with consultants, and Entree has no obligation to pay any costs
incurred or negotiated by Tiber Creek Corporation.
Tiber Creek Corporation may seek to locate a target company through
solicitation. Such solicitation may include newspaper or magazine
advertisements, mailings and other distributions to law firms, accounting
firms, investment bankers, financial advisors and similar persons, the use
of one or more web sites and similar methods. Tiber Creek Corporation
may utilize consultants in the business and financial communities
that may refer potential target companies to it from time to time.
Tiber Creek has no continuing relationships with any consultant but from
time to time a particular consultant may contact Tiber Creek. There is
no assurance that Tiber Creek Corporation will locate a target company
for a business combination.
In addition, the officers and directors of Entree will seek to
locate a target company. It is anticipated that those officers and
directors will attempt to locate target companies through the use of
contacts and introductions from persons known to them.
Once a target company is located, the board of directors of
Entree will determine whether to enter into a business combination
with such target. The directors of Entree are also its only
shareholders and will be provided with the information necessary to
determine whether to enter into such a business combination.
Tiber Creek Corporation may provide assistance to target companies
incident to and following a business combination, and receive payment for
such assistance from target companies.
Management of Entree
Entree has no full time employees. James Cassidy and James
McKillop are the officers and directors of Entree and its indirect
beneficial shareholders. Mr. Cassidy, as president of Entree, and Mr.
McKillop as vice president, will allocate a limited portion of time to the
activities of Entree without compensation. Potential conflicts may
arise with respect to the limited time commitment by management and the
potential demands of the activities of Entree.
13
______________________________________________________________________
The amount of time spent by Mr. Cassidy or Mr. McKillop on the
activities of Entree is not predictable. Such time may vary widely
from an extensive amount when reviewing a target company and effecting
a business combination to an essentially quiet time when activities of
management focus elsewhere. It is impossible to predict the amount of
time that will actually be required to spend to review suitable target
companies.
General Business Plan
The purpose of Entree is to seek, investigate and, if such
investigation warrants, effect a business combination with a business
entity which desires to seek the perceived advantages of a corporation
which has a class of securities registered under the Exchange Act.
Entree will not restrict its search to any specific business, industry,
or geographical location and Entree may participate in a business
venture of virtually any kind or nature. Management anticipates that it
will be able to participate in only one potential business venture because
Entree has nominal assets and limited financial resources. This lack
of diversification should be considered a substantial risk to the
shareholders of Entree because it will not permit Entree to offset
potential losses from one venture against gains from another.
Entree may seek a business opportunity with entities which
have recently commenced operations, or which wish to utilize the public
marketplace in order to raise additional capital in order to expand into
new products or markets, to develop a new product or service, or for other
corporate purposes.
The most likely target companies are those seeking the perceived
benefits of a reporting corporation. Such perceived benefits may include
facilitating or improving the terms on which additional equity financing
may be sought, providing liquidity for incentive stock options or similar
benefits to key employees, increasing the opportunity to use securities
for acquisitions, providing liquidity for shareholders and other factors.
Business opportunities may be available in many different
industries and at various stages of development, all of which will
make the task of comparative investigation and analysis of such business
opportunities difficult and complex.
Entree has, and will continue to have, no capital with which to
provide the owners of business entities with any cash or other assets.
However, Entree offers owners of acquisition candidates the
opportunity to acquire a controlling ownership interest in a reporting
company.
14
______________________________________________________________________
The analysis of new business opportunities will be undertaken by,
or under the supervision of, the officers and directors of Entree.
In analyzing prospective business opportunities, Entree may consider
such matters as the available technical, financial and managerial
resources; working capital and other financial requirements; history of
operations, if any; prospects for the future; nature of present and
expected competition; the quality and experience of management services
which may be available and the depth of that management; the potential
for further research, development, or exploration; specific risk factors
not now foreseeable but which may be anticipated; the potential for growth
or expansion; the potential for profit; the perceived public recognition
or acceptance of products, services, or trades; name identification; and
other relevant factors. This discussion of the proposed criteria is not
meant to be restrictive of the virtually unlimited discretion of Entree
to search for and enter into potential business opportunities.
Entree is subject to the reporting requirements of the
Exchange Act. Included in these requirements is the duty of Entree
to file audited financial statements reporting a business combination
which is required to be filed with the Securities and Exchange Commission
upon completion of the combination.
Because of the time required to prepare financial statements, a
target company which has entered into a business combination agreement
may wish to take control of Entree before the target company has
completed its audit. Among other things, this will allow the target
company to announce the pending combination through filings with the
Securities and Exchange Commission which will then be available to the
financial community, potential investors, and others. In such case,
Entree will only have access to unaudited and possibly limited
financial information about the target company in making a decision to
combine with that company.
Entree will not restrict its search to any specific kind of
business entities, but may acquire a venture which is in its preliminary
or development stage, which is already in operation, or in essentially any
stage of its business life. It is impossible to predict at this time the
status of any business in which Entree may become engaged, whether such
business may need to seek additional capital, may desire to have its shares
publicly traded, or may seek other perceived advantages which Entree
may offer.
Following a business combination Entree may require the
services of others in regard to accounting, legal services, underwritings
and corporate public relations. Tiber Creek Corporation may recommend
one or more underwriters, financial advisors, accountants, public relations
firms or other consultants to provide such services.
15
______________________________________________________________________
Terms of a Business Combination
In implementing a structure for a particular business acquisition,
Entree may become a party to a merger, consolidation, reorganization,
joint venture, licensing agreement or other arrangement with another
corporation or entity. On the consummation of a transaction, it is likely
that the present management and shareholders of Entree will no longer
be in control of Entree. In addition, it is likely that the officers
and directors of Entree will, as part of the terms of the business
combination, resign and be replaced by one or more new officers and
directors.
It is anticipated that any securities issued in any such business
combination would be issued in reliance upon exemption from registration
under applicable federal and state securities laws. Entree will likely
register all or a part of such securities for public trading after the
transaction is consummated. If such registration occurs, it will be
undertaken by the surviving entity after Entree has entered into an
agreement for a business combination or has consummated a business
combination and Entree is no longer considered a blank check
company. The issuance of additional securities and their potential sale
into any trading market which may develop in the securities of Entree
may depress the market value of the securities of Entree in the
future if such a market develops, of which there is no assurance.
While the terms of a business transaction to which Entree may be a
party cannot be predicted, it is expected that the parties to the business
transaction will desire to avoid the creation of a taxable event and
thereby structure the acquisition in a tax-free reorganization under
Sections 351 or 368 of the Internal Revenue Code of 1986, as amended.
Entree will participate in a business combination only after the
negotiation and execution of appropriate agreements. Although the terms
of such agreements cannot be predicted, generally such agreements will
require certain representations and warranties of the parties thereto, will
specify certain events of default, will detail the terms of closing and the
conditions which must be satisfied by the parties prior to and after such
closing and will include miscellaneous other terms.
James Cassidy and James McKillop, the officers and directors of
Entree, will provide their services without charge or repayment by
Entree.
Undertakings and Understandings Required of Target Companies
As part of a business combination agreement, Entree intends to
obtain certain representations and warranties from a target company as to
its conduct following the business combination. Such representations and
16
______________________________________________________________________
warranties may include (i) the agreement of the target company to make all
necessary filings and to take all other steps necessary to remain a
reporting company under the Exchange Act for at least a specified period
of time; (ii) imposing certain restrictions on the timing and amount of the
issuance of additional free-trading stock, including stock registered on
Form S-8 or issued pursuant to Regulation S and (iii) giving assurances of
ongoing compliance with the Securities Act, the Exchange Act, the
General Rules and Regulations of the Securities and Exchange
Commission, and other applicable laws, rules and regulations.
A potential target company should be aware that the market price and
trading volume of the securities of Entree, when and if listed for
secondary trading, may depend in great measure upon the willingness and
efforts of successor management to encourage interest in Entree
within the United States financial community. Entree does not have
the market support of an underwriter that would normally follow a public
offering of its securities. Initial market makers are likely to simply
post bid and asked prices and are unlikely to take positions in
Entree's securities for their own account or customers without active
encouragement and a basis for doing so. In addition, certain market
makers may take short positions in Entree's securities, which may
result in a significant pressure on their market price. Entree may
consider the ability and commitment of a target company to actively
encourage interest in Entree's securities following a business
combination in deciding whether to enter into a transaction with such
company.
A business combination with Entree separates the process of
becoming a public company from the raising of investment capital. As a
result, a business combination with Entree normally will not be a
beneficial transaction for a target company whose primary reason for
becoming a public company is the immediate infusion of capital.
Entree may require assurances from the target company that it has or
that it has a reasonable belief that it will have sufficient sources of
capital to continue operations following the business combination. However,
it is possible that a target company may give such assurances in error, or
that the basis for such belief may change as a result of circumstances
beyond the control of the target company.
Competition
Entree will remain an insignificant participant among the firms
which engage in the acquisition of business opportunities. There are
many established venture capital and financial concerns which have
significantly greater financial and personnel resources and technical
expertise than Entree. In view of Entree's combined extremely
limited financial resources and limited management availability,
Entree will continue to be at a significant competitive disadvantage
compared to Entree's competitors.
17
______________________________________________________________________
ITEM 3. PROPERTIES.
Entree has no properties and at this time has no agreements to
acquire any properties. Entree currently uses the offices of Tiber
Creek Corporation in Los Angeles, California, at no cost to Entree.
Tiber Creek Corporation will continue this arrangement until Entree
completes a business combination.
ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT.
The following table sets forth each person known by Entree to be
the beneficial owner of five percent or more of the common stock of
Entree, all directors individually and all directors and officers of
Entree as a group. Except as noted, each person has sole voting and
investment power with respect to the shares shown.
Name and Address Amount of Beneficial
of Beneficial Owner Ownership Percentage of Class
------------------------ -------------------- -------------------
James Cassidy (1) 10,000,000 50%
215 Apolena Avenue
Newport Beach, CA 92662
James McKillop (2) 10,000,000 50%
9454 Wilshire Boulevard
Beverly Hills, California 90212
All Executive Officers and 20,000,000 100%
Directors as a Group (1 Person)
(1) As the sole shareholder, officer and director of Tiber Creek
Corporation, a Delaware corporation, Mr. Cassidy is deemed to be the
beneficial owner of the shares of common stock of Entree owned by
it.
(2) As the sole principal of MB Americus LLC, a California business
entity, Mr. McKillop is deemed to be the beneficial owner of the shares
of Entree owned by it.
18
______________________________________________________________________
ITEM 5. DIRECTORS AND EXECUTIVE OFFICERS
Entree has two directors and officers as follows:
Name Age Positions and Offices Held
James Cassidy 77 President, Secretary, Director
James McKillop 53 Vice President, Director
Set forth below are the name of the directors and officers of
Entree, all positions and offices held and the business experience
during at least the last five years:
James Cassidy, Esq., LL.B., LL.M., serves as a director,
president and secretary of Entree. Mr. Cassidy received a Bachelor of
Science in Languages and Linguistics from Georgetown University in
1960, a Bachelor of Laws from The Catholic University School of Law in
1963, and a Master of Laws in Taxation from The Georgetown University
School of Law in 1968. From 1963-1964, Mr. Cassidy was law clerk to
the Honorable Inzer B. Wyatt of the United States District Court for the
Southern District of New York. From 1964-1965, Mr. Cassidy was law
clerk to the Honorable Wilbur K. Miller of the United States Court of
Appeals for the District of Columbia. From 1969-1975, Mr. Cassidy was
an associate of the law firm of Kieffer & Moroney and a principal in the
law firm of Kieffer & Cassidy, Washington, D.C. From 1975 to date, Mr.
Cassidy has been a principal in the law firm of Cassidy & Associates, and
its predecessors, specializing in securities law and related corporate and
federal taxation matters. Mr. Cassidy also serves as President, sole
director and shareholder of Tiber Creek Corporation, which is a shareholder
of Entree. Tiber Creek also provides services to companies in
assisting it them in becoming public companies and with introductions
to the financial community. Mr. Cassidy is a member of the bars of the
District of Columbia and the State of New York, and is admitted to
practice before the United States Tax Court and the United States Supreme
Court. Entree believes Mr. Cassidy to have the business experience
necessary to serve as a director of Entree as it seeks to enter into a
business combination. As a lawyer involved in business transactions and
securities matters, Mr. Cassidy has had ample experience in evaluating
companies and management, understanding business plans, assisting in
capital raising and determining corporate structure and objectives.
19
______________________________________________________________________
James McKillop serves as a director and vice president of
Entree. Mr. McKillop began his career at Merrill Lynch. Mr. McKillop
has also been involved in financial reporting and did a daily stock market
update for KPCC radio in Pasadena, California. Mr. McKillop is the founder
of MB Americus LLC which specializes in consulting and public relations.
Mr. McKillop has provided consulting services to Tiber Creek Corporation
for more than five years. Mr. McKillop has written articles for varous
publications on financial matters. He has been a past member of the World
Affairs Council. Mr. McKillop received his Bachelor of Arts in Economics
in 1984 from the University of California at Los Angeles. With his
background in financial and securities matters, Entree believes Mr.
McKillop to have experience and knowledge that will serve Entree in
seeking, evaluting and determining a suitable target company.
There are no agreements or understandings for the above-named
officers or directors to resign at the request of another person and the
above-named officers and directors are not acting on behalf of nor will
act at the direction of any other person.
Recent Blank Check Companies
James Cassidy, the president and a director of Entree and
James McKillop, vice president and a director of Entree, are involved
with other existing blank check companies and with blank check companies
that have had a change in control and-or have effected a business
combination. The initial business purpose of each of these
companies was to engage in a business combination with an
unidentified target company or companies and each was a blank
check company until completion of a business combination.
The below listed companies each independently negotiated
with Tiber Creek for Tiber Creek to assist it in going public.
These companies paid Tiber Creek for its assistance. Typically
Tiber Creek received cash compensation and retained a stock interest
in the reporting company. Tiber Creek engaged the law firm which
prepared the legal documentation required for the client company
to take control of the reporting company and to commence filing
its periodic and periodic reports.
A change in control of a company as listed below will not
change that company's status as a shell company. Once a company
effects a business combination such as a merger with a company
that has operations, revenues, a business plan or other corporate
structure, then at that time, the company's status as a shell
company may change. At such time, such company will flie a
Form 8-K with the business combination information and notice
of the change in its status.
20
______________________________________________________________________
The information summarizes the blank check companies with
which Mr. Cassidy and/or Mr. McKillop is or has been involved in the
past five years which filed a registration statement on Form 10 or Form
10-SB. In most instances that a business combination is transacted with
one of these companies, it is required to file a Current Report on Form
8-K describing the transaction. Reference is made to the Current Report
on Form 8-K filed for any company listed below and for additional detailed
information concerning the business combination entered into by that
company, including financial information.
Cabinet Acquisition Corporation: Form 10-SB filed on 8/28/2000,
file number 0-31398. Mr. Cassidy was the sole indirect beneficial
shareholder, officer and director of the corporation. On October 8, 2009,
the corporation effected a change in control with the redemption of stock
and the issuance of additional stock and the election of new directors and
appointment of new officers. Mr. Cassidy retained 500,000 shares and
resigned from all offices and as a director.
Canistel Acquisition Corporation. Form 10 filed on May 23, 2008,
file number 000-53255. Mr. Cassidy was the sole officer and director
and Mr. McKillop was an employee of the corporation. Mr. Cassidy and Mr.
McKillop were the only shareholders and each was indirect beneficial
shareholder. On December 7, 2010, the corporation filed a form 8-K
noticing the change of control effected on December 3, 2010 with
redemption of 250,000 shares from each of the then two shareholders, the
issuance of additional shares of common stock, the election of new
directors and appointment of new officers. Mr. Cassidy and Mr. McKillop
each retained 250,000 shares. Mr. Cassidy resigned from all offices and
as a director and Mr. McKillop resigned as an employee. On December 3,
2010, Canistel changed its name to Opera Jet International, Ltd. Opera
Jet filed a Form 8-K noticing a business combination and a change in
its status on February 13, 2012.
Console Acquisition Corporation: Form 10 filed on May 23, 2008,
file number 000-53257. Mr. Cassidy was the sole officer and director
and Mr. McKillop was an employee of the corporation. Mr. Cassidy and
Mr. McKillop were the only shareholders and each was indirect beneficial
shareholder. On December 22, 2009, the corporation filed a form 8-K
noticing the change of control effected on December 21, 2009 with the
issuance of additional shares of common stock, the election of new
directors and appointment of new officers. Mr. Cassidy and Mr. McKillop
each retained 250,000 shares. Mr. Cassidy resigned from all offices and
as a director and Mr. McKillop resigned as an employee.
Hightower Acquisition Corporation: Form 10 filed on May 23,
2008, file number 000-53258. Mr. Cassidy was the sole officer and
director and Mr. McKillop was an employee of the corporation. Mr.
Cassidy and Mr. McKillop were the only shareholders and each was
indirect beneficial shareholder. On May 12, 2010, the corporation filed
a form 8-K noticing the change of control effected on May 12, 2010
with redemption of 375,000 shares from each of the then two shareholders,
the issuance of additional shares of common stock, the election of new
directors and appointment of new officers. Mr. Cassidy and Mr. McKillop
each retained 125,000 shares. Mr. Cassidy resigned from all offices and
as a director and Mr. McKillop resigned as an employee. On May 12, 2010,
Hightower changed its name to Adelman Enterprises, Inc.
21
______________________________________________________________________
Spinnet Acquisition Corporation: Form 10 filed on May 23, 2008,
file number 000-53256 Mr. Cassidy was the sole officer and director and
Mr. McKillop was an employee of the corporation. Mr. Cassidy and Mr.
McKillop were the only shareholders and each was indirect beneficial
shareholder. On October 5, 2009 the corporation filed a form 8-K noticing
the change of control effected on September 30, 2010 with redemption of
250,000 shares from each of the then two shareholders, the issuance of
additional shares of common stock, the election of new directors and
appointment of new officers. Mr. Cassidy and Mr. McKillop each retained
250,000 shares. Mr. Cassidy resigned from all offices and as a director
and Mr. McKillop resigned as an employee. On September 30, 2009, Spinnet
changed its name to VanHolt Group, Ltd.
Greenmark Acquisition Corporation: Form 10 filed on May 23,
2008, file number 000-53259. Mr. Cassidy was the sole officer and director
and Mr. McKillop was an employee of the corporation. Mr. Cassidy and Mr.
McKillop were the only shareholders and each was indirect beneficial
shareholder. On December 14, 2010 the corporation filed a form 8-K noticing
the change of control effected on December 13, 2010 with the issuance of
additional shares of common stock, the election of new directors and
appointment of new officers. Mr. Cassidy and Mr. McKillop each retained
500,000 shares. Mr. Cassidy resigned from all offices and as a director
and Mr. McKillop resigned as an employee. On December 11, 2011, Greenmark
changed its name to Powerdyne International, Inc. Powerdyne Acquisition
filed a Form 8-K noticing a business combination and a change in
its status on March 25, 2011.
Alderwood Acquisition Corporation: Form 10 filed on October 7,
2010, file number 000-54148. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On July 20, 2011
the corporation filed a Form 8-K noticing the change of control effected
July 15, 2011 with the redemption of 19,800,000 shares of the 20,000,000
shares of outstanding stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr. Cassidy
and Mr. McKillop each beneficially retained 100,000 shares of stock.
Messrs. Cassidy and McKillop each resigned from all offices and as
directors. The name of the corporation was changed to SGreenTech
Group Ltd. and subsequently changed to Pixtel Group Ltd.
Oakwood Acquisition Corporation: Form 10 filed on October 7,
2010, file number 000-54147. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On December 12,
2011 the corporation filed a Form 8-K noticing the change of control effected
November 30, 2011 with the redemption of 19,500,000 shares of the 20,000,000
shares of outstanding stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr. Cassidy
and Mr. McKillop each beneficially retained 250,000 shares of stock.
Messrs. Cassidy and McKillop each resigned from all offices and as
directors. The name of the corporation was changed to Bristol
Rhace Natural Resource Corporation
22
______________________________________________________________________
Pinewood Acquisition Corporation: Form 10 filed on October 7,
2010, file number 000-54146. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On June 1,
2011, Pinewood Acquisition Corporation filed a Form 8-K noticing the
change of control effected May 25, 2011 with the redemption of an
aggregate of 19,500,000 of the then 20,000,000 shares of outstanding
common stock, issuance of additional shares of common stock, the
election of new directors and appointment of new officers. Mr. Cassidy
and Mr. McKillop each beneficially retained 250,000 shares of stock.
Messrs. Cassidy and McKillop each resigned from all offices and as
directors. The name of the corporation was changed to De Yang
International Group Ltd. and subsequently changed to Fun World
Media, Inc.
Sherwood Acquisition Corporation: Form 10 filed on October 7,
2010, file number 000-54145. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On July 22,
2011, Sherwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected July 20, 2011 with the redemption of an
aggregate of 19,800,000 shares of the then 20,000,000 shares of
of outstanding common stock, issuance of additional shares of common
stock, the election of new directors and appointment of new officers.
Mr. Cassidy and Mr. McKillop each beneficially retained 100,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors.
Beachwood Acquisition Corporation: Form 10 filed on June 2,
2011, file number 000-54423. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On August 31,
2011 Beachwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected August 31, 2011 with the redemption of an
aggregate of 18,500,000 shares of the then outstanding 20,000,000 shares
of common stock, issuance of additional shares of common stock, the
election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 750,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to
BioPharma Manufacturing Solutions Inc.
Boxwood Acquisition Corporation: Form 10 filed on June 2,
2011, file number 000-54424. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders and
each was indirect beneficial owner of 10,000,000 shares. On November 1,
2011 Boxwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected October 28, 2011 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000 shares
of common stock, issuance of additional shares of common stock, the
election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to
GreenPower International Group, Ltd. Greenpower International
filed a Form 8-K noticing a business combination and a change in
its status on February 13, 2012.
23
______________________________________________________________________
Cottonwood Acquisition Corporation: Form 10 filed on June 2,
2011, file number 000-54425. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On
November 2, 2011 Cottonwood Acquisition Corporation filed a Form 8-K
noticing the change of control effected October 30, 2011 with the redemption
of an aggregate of 19,700,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 150,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to
Creative Entertainment Holdings, Inc.
Driftwood Acquisition Corporation: Form 10 filed on June 2,
2011, file number 000-54426. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On
February 28, 2012, Driftwood Acquisition Corporation filed a Form 8-K
noticing the change of control effected February 1, 2012 with the redemption
of an aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to Pivotal
Group, INc.
Moosewood Acquisition Corporation: Form 10 filed on June 2,
2011, file number 000-54427. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On May 23,
2012, Moosewood Acquisition Corporation filed a Form 8-K noticing the
change of control effected May 22, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to First
Rate Staffing Corporation.
Amberwood Acquisition Corporation: Form 10 filed on November 8,
2011, file number 000-54541. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. Amberwood
Acquisition Corporation filed a Form 8-K noticing the change of control
effected March 27, 2012 with the redemption of an aggregate of 19,500,000
shares of the then outstanding 20,000,000 shares of common stock,
issuance of additional shares of common stock, the election of new
directors and appointment of new officers. Mr. Cassidy and Mr. McKillop
each beneficially retained 250,000 shares of stock. Messrs. Cassidy and
McKillop each resigned from all offices and as directors. The name of the
corporation was changed to American Laser Healthcare Corporation.
Bluewood Acquisition Corporation: Form 10 filed on November 8,
2011, file number 000-54542. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On April 30,
2012, Bluewood Acquisition Corporation filed a Form 8-K noticing the
change of control effected April 30, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to Xtreme
Healthcare Corporation.
24
______________________________________________________________________
Rosewood Acquisition Corporation: Form 10 filed on November 8,
2011, file number 000-54544. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On April 3,
2012, Rosewood Acquisition Corporation filed a Form 8-K noticing the
change of control effected March 31, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors.
Silverwood Acquisition Corporation: Form 10 filed on November 8,
2011, file number 000-54545. Mr. Cassidy and Mr. McKillop are both
directors of the corporation and serve as president and vice president,
respectively, Mr. Cassidy and Mr. McKillop are the only shareholders
and each is indirect beneficial owner of 10,000,000 shares.
Yellowwood Acquisition Corporation: Form 10 filed on November 8,
2011, file number 000-54546. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On April 17,
2012, Yellowwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected April 17, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors.
Bentwood Acquisition Corporation: Form 10 filed on January 27,
2012, file number 000-54590. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On July 17,
2012, Bentwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected July 11, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to Rezilient
Direct Corporation.
Hardwood Acquisition Corporation: Form 10 filed on January 27,
2012, file number 000-54591. Mr. Cassidy and Mr. McKillop are both
directors of the corporation and serve as president and vice president,
respectively, Mr. Cassidy and Mr. McKillop are the only shareholders
and each is indirect beneficial owner of 10,000,000 shares.
Lightwood Acquisition Corporation: Form 10 filed on January 27,
2012, file number 000-54592. Mr. Cassidy and Mr. McKillop are both
directors of the corporation and serve as president and vice president,
respectively, Mr. Cassidy and Mr. McKillop are the only shareholders
and each is indirect beneficial owner of 10,000,000 shares.
Roundwood Acquisition Corporation: Form 10 filed on January 27,
2012, file number 000-54593. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On June 16,
2012, Roundwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected June 7, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors. The name of the corporation was changed to Bio Oil
National Corporation.
25
______________________________________________________________________
Timberwood Acquisition Corporation: Form 10 filed on January 27,
2012, file number 000-54594. Mr. Cassidy and Mr. McKillop were both
directors of the corporation and served as president and vice president,
respectively. Mr. Cassidy and Mr. McKillop were the only shareholders
and each was indirect beneficial owner of 10,000,000 shares. On May 15,
2012, Timberwood Acquisition Corporation filed a Form 8-K noticing the
change of control effected May 12, 2012 with the redemption of an
aggregate of 19,500,000 shares of the then outstanding 20,000,000
shares of common stock, issuance of additional shares of common stock,
the election of new directors and appointment of new officers. Mr.
Cassidy and Mr. McKillop each beneficially retained 250,000 shares
of stock. Messrs. Cassidy and McKillop each resigned from all offices
and as directors.
Conflicts of Interest
The officers and directors of Entree have organized and expect to
organize other companies of a similar nature and with a similar purpose.
Consequently, there are potential inherent conflicts of interest. In
addition, insofar as either Mr. Cassidy or Mr. McKillop may be engaged
in other business activities, they may devote only a portion of time to
the affairs of Entree. Through Mr. Cassidy, there is an unwritten
understanding that Tiber Creek will fund the expenses of the below listed
companies. Because of the absence of any on-going operations of these
companies, these expenses are anticipated to be relatively low.
Messrs. Cassidy and McKillop are also the directors of, and sole
beneficial shareholders of the following companies which have filed
registration statements on Form 10 for the registration of their common
stock pursuant to the Securities Exchange Act concurrently with the filing
of this registration statement:
Gumtree Acquisition Corporation
Sagetree Acquisition Corporation
Saddletree Acquisition Corporation
Whiffletree Acquisition Corporation
In addition to those companies listed immediately above, at the
time of teh filing of this registration statement, Mr. Cassidy and
Mr. McKillop are the sole shareholders of the following companies, as
listed in the preceding section above: Hardwood Acquisition Corporation
and Lightwood Acquisition Corporation which are blank check companies
with a purpose similar to that of Entree.
A conflict may arise with these listed blank check companies which
also seek target companies. It is anticipated that target companies will
be located for Entree and other blank check companies in chronological
order of the date of filing of the Form 10 registration statement of such
blank check companies with the Securities and Exchange Commission or,
in the case of blank check companies with the same filing date,
alphabetically, or by arbitrary selection.
26
______________________________________________________________________
Other blank check companies may differ from Entree in certain
items such as place of incorporation, number of shares and shareholders,
working capital, types of authorized securities, or other items. It may
be that a target companymay be more suitable for or may prefer a certain
blank check company other than Entree. In such case, a business
combination might be negotiated on behalf of the more suitable or
preferred blank check company.
Mr. Cassidy and/or Mr. McKillop may become associated with
additional blank check companies prior to the time that Entree has
effected a business combination.
Mr. Cassidy is the principal of Cassidy & Associates, a securities
law firm. As such, demands may be placed on the time of Mr. Cassidy
which will detract from the amount of time he is able to devote to
Entree. Mr. Cassidy intends to devote as much time to the activities
of Entree as required. However, should such a conflict arise, there
is no assurance that Mr. Cassidy would not attend to other matters prior
to those of Entree.
Mr. Cassidy is the president, sole director and shareholder of
Tiber Creek Corporation, which is a shareholder of Entree. At the
time of a business combination, some or all of the shares of common stock
owned by Tiber Creek Corporation may be retired by Entree. The
amount of common stock which may be sold or continued to be owned by
Tiber Creek Corporation cannot be determined at this time.
Mr. McKillop is the manager and sole member of MB Americus
LLC which is a shareholder of Entree. At the time of a business
combination, some or all of the shares of common stock owned by MB
Americus LLC may be purchased or retired by Entree. The amount
of common stock which may be sold or continued to be owned by MB
Americus cannot be determined at this time.
The terms of a business combination may provide for a nominal
payment by cash to Tiber Creek Corporation and MB Americus LLC for
the retirement of all or part of the common stock of Entree owned by
them.
Investment Company Act of 1940
Although Entree will be subject to regulation under the Securities
Act and the Exchange Act, management believes Entree will not be subject
to regulation under the Investment Company Act of 1940 insofar as Entree
will not be engaged in the business of investing or trading in securities.
27
______________________________________________________________________
In the event Entree engages in business combinations which
result in Entree holding passive investment interests in a number of
entities, Entree could be subject to regulation under the Investment
Company Act of 1940. In such event, Entree would be required to
register as an investment company and could be expected to incur
significant registration and compliance costs. Entree has obtained
no formal determination from the Securities and Exchange Commission
as to the status of Entree under the Investment Company Act of 1940.
Any violation of such Act would subject Entree to material adverse
consequences.
ITEM 6. EXECUTIVE COMPENSATION
The officers and directors of Entree do not receive any compensation
for services to Entree, have not received such compensation in the past,
and are not accruing any compensation. However, the officers and
directors of Entree are also indirect beneficial shareholders and
anticipate receiving possible benefits as beneficial shareholders if
the value of the shares of Entree increase after a business transaction
is effected as in such business transaction they will likely retain some
of their shares in Entree and would benefit from any such increase in
share value.
Cassidy & Associates may perform legal services for Entree
after the business combination and Mr. Cassidy is a principal of such
law firm.
No retirement, pension, profit sharing, stock option or insurance
programs or other similar programs have been adopted by Entree for
the benefit of employees.
ITEM 7. CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS AND DIRECTOR INDEPENDENCE.
Entree has issued a total of 20,000,000 shares of common stock
pursuant to Section 4(2) of the Securities Act for a total of $2,000
in cash.
James Cassidy is president and a director of Entree and the sole
officer, director and the shareholder of Tiber Creek Corporation,
which is a 50% shareholder of Entree.
James McKillop is vice president and a director of Entree and the
sole manager and member of MB Americus LLC, which is a 50% shareholder
of Entree.
As the organizers and developers of Entree, James Cassidy and
James McKillop may be considered promoters. Mr. Cassidy has provided
services to Entree without charge consisting of preparing and filing
28
______________________________________________________________________
the charter corporate documents and preparing this registration statement.
Tiber Creek Corporation, a company of which Mr. Cassidy is the sole
director, officer and shareholder, has paid and will continue to pay
all expenses incurred by Entree until a business combination is effected,
without repayment. Tiber Creek is a shareholder of Entree and may
receive benefits in the future if the company is able to effect a
business combination beneficial to the company.
Entree is not currently required to maintain an independent director
as defined by Rule 4200 of the Nasdaq Capital Market nor does it
anticipate that it will be applying for listing of its securities on an
exchange in which an independent directorship is required. It is likely
that neither Mr. Cassidy nor Mr. McKillop would not be considered
independent directors if it were to do so.
ITEM 8. LEGAL PROCEEDINGS
There is no litigation pending or threatened by or against
Entree.
ITEM 9. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON
EQUITY AND RELATED STOCKHOLDER MATTERS
(a) Market Price. There is no trading market for Entree's
common stock and there has been no trading market to date. There is no
assurance that a trading market will ever develop or, if such a market
does develop, that it will continue. There is no common stock or other
equity subject to any outstanding options or warrants or any securities
convertible into common stock of Entree nor is any common stock
currently being publicly offered by Entree. At the time of this
registration, no shares issued by Entree are available for sale pursuant
to Rule 144 promulgated pursuant to the Rules and Regulations of the
Securities and Exchange Commission but after the requisite holding period,
the shareholders of Entree could offer their shares for sale pursuant
to such rule. However, all the shareholders of Entree are officers and
directors and as such are subject to the rules governing affiliated persons
for sales pursuant to Rule 144.
Pursuant to Rule 144(i) of the Securities Act of 1933, the safe harbor
provisions provided under Rule 144 are not available to shareholders of
the Company and will continue to be unavailable until at least one year
after the Company ceases to be a company with no or nominal operations and
has filed all reports and other materials required to be filed by section
13 or 15(d) of the Exchange Act, as applicable, during the preceding
12 months.
(b) Holders. The issued and outstanding shares of the common
stock of Entree were issued to two shareholders in accordance with the
exemptions from registration afforded by Section 4(2) of the Securities
Act of 1933.
(c) Dividends. Entree has not paid any dividends to date, and
has no plans to do so in the immediate future. Entree presently
intends to retain all earnings, if any, for use in its business operations
and accordingly, the Board of Directors does not anticipate declaring any
dividends prior to a business combination. Dividends, if any, would be
contingent upon Entree's revenues and earnings, if any, capital
requirements and financial conditions. The payment of dividends would
be within the discretion of Entree's Board of Directors.
29
______________________________________________________________________
ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES.
During the past three years, Entree has issued 20,000,000
common shares pursuant to Section 4(2) of the Securities Act of 1933 for
an aggregate purchase price of $2,000:
On April 30, 2012, Entree issued the following shares of its
common stock:
Name Number of Shares Consideration
Tiber Creek Corporation 10,000,000 $1,000
MB Americus LLC 10,000,000 $1,000
ITEM 11. DESCRIPTION OF REGISTRANT'S SECURITIES TO BE REGISTERED
The authorized capital stock of Entree consists of 100,000,000
shares of common stock, par value $0.0001 per share, of which there are
20,000,000 issued and outstanding and 20,000,000 shares of preferred
stock, par value $0.0001 per share, of which none have been designated or
issued.
The following statements relating to the capital stock set forth the
material terms of the securities of Entree; however, reference is made
to the more detailed provisions of, and such statements are qualified in
their entirety by reference to, the certificate of incorporation and the
by-laws, copies of which are filed as exhibits to this registration
statement.
Common Stock
Holders of shares of common stock are entitled to one vote for each
share on all matters to be voted on by the stockholders. Holders of
common stock do not have cumulative voting rights. Holders of common
stock are entitled to share ratably in dividends, if any, as may be
declared from time to time by the Board of Directors in its discretion
from funds legally available therefor. In the event of a liquidation,
dissolution or winding up of Entree, the holders of common stock are
entitled to share pro rata all assets remaining after payment in full of
all liabilities. All of the outstanding shares of common stock are fully
paid and non-assessable.
Holders of common stock have no preemptive rights to purchase the
common stock of Entree. There are no conversion or redemption
rights or sinking fund provisions with respect to the common stock.
30
______________________________________________________________________
Preferred Stock
The Board of Directors is authorized to provide for the issuance of
shares of preferred stock in series and, by filing a certificate pursuant
to the applicable law of Delaware, to establish from time to time the
number of shares to be included in each such series, and to fix the
designation, powers, preferences and rights of the shares of each such
series and the qualifications, limitations or restrictions thereof without
any further vote or action by the shareholders. Any shares of preferred
stock so issued would have priority over the common stock with respect to
dividend or liquidation rights. Any future issuance of preferred stock may
have the effect of delaying, deferring or preventing a change in control
of Entree without further action by the shareholders and may adversely
affect the voting and other rights of the holders of common stock. At
present, Entree has no plans to issue any preferred stock nor adopt
any series, preferences or other classification of preferred stock.
The issuance of shares of preferred stock, or the issuance of rights
to purchase such shares, could be used to discourage an unsolicited
acquisition proposal. For instance, the issuance of a series of
preferred stock might impede a business combination by including class
voting rights that would enable the holder to block such a transaction,
or facilitate a business combination by including voting rights that
would provide a required percentage vote of the stockholders. In
addition, under certain circumstances, the issuance of preferred stock
could adversely affect the voting power of the holders of the common stock.
Although the Board of Directors is required to make any determination
to issue such stock based on its judgment as to the best interests of the
stockholders of Entree, the Board of Directors could act in a manner
that would discourage an acquisition attempt or other transaction that
some, or a majority, of the stockholders might believe to be in their best
interests or in which stockholders might receive a premium for their stock
over the then market price of such stock. The Board of Directors does not
at present intend to seek stockholder approval prior to any issuance of
currently authorized stock, unless otherwise required by law or otherwise.
Entree has no present plans to issue any preferred stock.
Trading of Securities in Secondary Market
Following a business combination, a target company will normally wish
to cause Entree's common stock to trade in one or more United States
securities markets. The target company may elect to take the steps
required for such admission to quotation following the business
combination or at some later time. Such steps will normally involve filing
a registration statement under the Securities Act. Such registration
statement may include securities held by current shareholders or offered by
Entree, including warrants, shares underlying warrants, and debt
securities.
31
______________________________________________________________________
In order to qualify for listing on the Nasdaq Capital Market, a company
must have at least (i) net tangible assets of $4,000,000 or market
capitalization of $50,000,000 or net income for two of the last three years
of $750,000; (ii) public float of 1,000,000 shares with a market value of
$5,000,000; (iii) a bid price of $4.00; (iv) three market makers; (v) 300
round-lot shareholders and (vi) an operating history of one year or, if
less than one year, $50,000,000 in market capitalization. For continued
listing on the Nasdaq Capital Market, a company must have at least (i)
net tangible assets of $2,000,000 or market capitalization of $35,000,000
ornet income for two of the last three years of $500,000; (ii) a public
float of 500,000 shares with a market value of $1,000,000; (iii) a bid
price of$1.00; (iv) two market makers; and (v) 300 round-lot shareholders.
In 2011, the NASDAQ Stock Market adopted additional listing requirements
for a company that became a 1934 Act reporting company by effecting a
business combination with a public shell, whether through a reverse merger,
exchange offer, or otherwise. These new requirements include (i) trading
for at least one year on the OTC market or another national or foreign
exchange (ii) filing of all required information, including financial,
regarding the business combination (iii) timely filing of all required
periodic financial reports for the prior year, which would include at
least one annual report filing and (iv) maintenance of a $4 share
price for at least 30 of the most recent 60 trading days prior to
the initial listing application.
If, after a business combination and qualification of its securities
for trading, Entree does not meet the qualifications for listing on the
Nasdaq Capital Market, Entree may apply for quotation of its
securities on the OTC Bulletin Board.
In order to have its securities quoted on the OTC Bulletin Board a
company must (i) be a company that reports its current financial
information to the Securities and Exchange Commission, banking
regulators or insurance regulators; and (ii) have at least one market
maker who completes and files a Form 211 with Regulation, Inc.
The OTC Bulletin Board is a dealer-driven quotation service. Unlike
the Nasdaq Stock Market, companies cannot directly apply to be quoted on
the OTC Bulletin Board, only market makers can initiate quotes, and quoted
companies do not have to meet any quantitative financial requirements.
Any equity security of a reporting company not listed on the Nasdaq Stock
Market or on a national securities exchange is eligible.
In certain cases Entree may elect to have its securities initially
quoted in the Pink Sheets published by Pink OTC Markets Inc.
In general there is greatest liquidity for traded securities on the
Nasdaq Capital Market, less on the OTC Bulletin Board, and least through
quotation on the Pink Sheets. It is not possible to predict where, if
at all, the securities of Entree will be traded following a business
combination and qualification of its securities for trading.
The National Securities Market Improvement Act of 1996 limited the
authority of states to impose restrictions upon resales of securities made
pursuant to Sections 4(1) and 4(3) of the Securities Act of companies
which file reports under Sections 13 or 15(d) of the Exchange Act. Upon
effectiveness of this registration statement, Entree will be required
to, and will, file reports under Section 13 of the Exchange Act. As a
result, sales of Entree's common stock in the secondary market by the
holders thereof may then be made pursuant to Section 4(1) of the
Securities Act (sales other than by an issuer, underwriter or broker)
without qualification under state securities acts. The resale of such
shares may be subject to the holding period and other requirements of
Rule 144 of the General Rules and Regulations of the Securities and
Exchange Commission.
32
______________________________________________________________________
Transfer Agent
It is anticipated that Globex Transfer, LLC, Deltona, Florida, will
act as transfer agent for the common stock of Entree.
Additional Information
This registration statement and all other filings of Entree
when made with the Securities and Exchange Commission may be viewed and
downloaded at the Securities and Exchange Commission's website at
www.sec.gov. Entree will be subject to the reporting requirements
of the Securities Act of 1934 automatically 60 days after filing of
this registration statement.
ITEM 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the General Corporation Law of the State of Delaware
provides that a certificate of incorporation may contain a provision
eliminating the personal liability of a director to the corporation or
its stockholders for monetary damages for breach of fiduciary duty as a
director provided that such provision shall not eliminate or limit the
liability of a director (i) for any breach of the director's duty of
loyalty to the corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or
a knowing violation of law, (iii) under Section 174 (relating to liability
for unauthorized acquisitions or redemptions of, or dividends on,
capital stock) of the General Corporation Law of the State of Delaware,
or (iv) for any transaction from which the director derived an improper
personal benefit. Entree's certificate of incorporation contains such
a provision.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to directors, officers
or persons controlling the company pursuant to the foregoing provisions, it
is the opinion of the Securities and Exchange Commission that such
indemnification is against public policy as expressed in the Act and is
therefore unenforceable.
ITEM 13. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Entree is a smaller reporting company in accordance with Regulation
S-X.
33
______________________________________________________________________
ITEM 14. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.
Entree has not changed accountants since its formation and there
are no disagreements with the findings of its accountants.
ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS.
Set forth below are the audited financial statements for Entree
for the period ended April 30, 2012. The following financial
statements are attached to this report and filed as a part thereof.
28
______________________________________________________________________
FINANCIAL STATEMENTS FOR
Period from April 23, 2012
(Inception) to April 30, 2012
34
______________________________________________________________________
FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm 1
Balance Sheet as of April 30, 2012 2
Statement of Operations for the period from
April 23, 2012 (Inception) to April 30, 2012 3
Statement of Changes in Stockholders' Equity for the
period from April 23, 2012 (Inception) to April 30, 2012 4
Statement of Cash Flows for the period from
April 23, 2012 (Inception) to April 30, 2012 5
Notes to Financial Statements 6-8
______________________________________________________________________
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
Entree Acquisition Corporation
(a development stage company)
We have audited the accompanying balance sheet of Entree Acquisition
Corporation (the "Company") as of April 30, 2012, and the related
statements of operations, stockholders' equity and cash flows for
the period from April 23, 2012 (Inception) through April 30, 2012.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audits in accordance with standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. The Company was not required to have, nor were we
engaged to perform, an audit of its internal control over financial
reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of Company's internal control over
financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Company as of
April 30, 2012 and the results of its operations and its cash flows for
the period from April 23, 2012 (Inception) through April 30, 2012, in
conformity with accounting principles generally accepted in the United
States of America.
The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern. The Company has
a loss from operations and an accumulated deficit of $750 from April 23,
2012 (Inception) through April 30, 2012. As discussed in Note 2 to the
financial statements, the Company is in the development stage and a
significant amount of additional capital will be necessary to advance
operations to the point at which the Company is profitable. These
conditions, among others, raise substantial doubt about the
Company's ability to continue as a going concern. Management's plans
concerning these matters are also described in Note 2, which includes
the raising of additional equity financing or merger with another
entity. The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
/s/ Anton & Chia LLP
Newport Beach, CA
May 30, 2012
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
ASSETS
April 30, 2012
---------------
Current assets
Cash $ 2,000
---------------
Total assets $ 2,000
===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ -
---------------
Total liabilities -
---------------
Stockholders' equity
Preferred stock, $0.0001 par value,
20,000,000 shares authorized; none
outstanding -
Common stock, $0.0001 par value,100,000,000
shares authorized; 20,000,000 shares issued
and outstanding 2,000
Additional paid-in capital 750
Deficit accumulated during the
development stage (750)
---------------
Total stockholders' equity 2,000
---------------
Total liabilities and
stockholders' equity $ 2,000
===============
The accompanying notes are an integral part of these financial statements
2
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
For the period from
April 23, 2012
(Inception) to
April 30, 2012
-----------------
Sales $ -
Cost of sales -
-----------------
Gross profit -
-----------------
Operating expenses 750
-----------------
Net loss $ (750)
==================
Loss per share - basic and diluted $ (0.00)
-----------------
Weighted average shares-basic and diluted 20,000,000
-----------------
The accompanying notes are an integral part of these financial statements
3
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Deficit
Accumulated
Common Stock Additional During Total
--------------------- Paid-In Development Stockholders'
Shares Amount Capital Stage Equity
--------- -------- --------- ----------- -----------
Balance, April 23,
2012 (Inception) - $ - $ - $ - $ -
Issuance of common stock 20,000,000 2,000 - - 2,000
Additional paid-in capital - - 750 - 750
Net loss - - - (750) (750)
---------- -------- -------- ----------- ---------
Balance,
April 30, 2012 20,000,000 $ 2,000 $ 750 $ (750) $ 2,000
========== ======== ======== =========== =========
The accompanying notes are an integral part of these financial statements
4
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
For the period from
April 23, 2012
(Inception) to
April 30, 2012
-----------------
OPERATING ACTIVITIES
Net loss $ (750)
--------------
Cash used in operating activities (750)
--------------
FINANCING ACTIVITIES
Proceeds from issuance of common stock 2,000
Proceeds from stockholders' additional
paid-in capital 750
--------------
Cash provided by financing activities 2,750
--------------
Net increase in cash 2,000
Cash, beginning of period -
--------------
Cash, end of period $ 2,000
==============
The accompanying notes are an integral part of these financial statements
5
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
NOTE 1 NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
NATURE OF OPERATIONS
Entree Acquisition Corporation ("Entree" or "the Company") was
incorporated on April 23, 2012 under the laws of the State of Delaware
to engage in any lawful corporate undertaking, including, but not
limited to, selected mergers and acquisitions. Entree has been in the
developmental stage since inception and its operations to date have
been limited to issuing shares to its original shareholders and filing
this registration statement. Entree will attempt to locate and negotiate
with a business entity for the combination of that target company with
Entree. The combination will normally take the form of a merger,
stock-for-stock exchange or stock-for-assets exchange. In most
instances the target company will wish to structure the business
combination to be within the definition of a tax-free reorganization
under Section 351 or Section 368 of the Internal Revenue Code of
1986, as amended. No assurances can be given that Entree will be
successful in locating or negotiating with any target company. Entree
has been formed to provide a method for a foreign or domestic private
company to become a reporting company with a class of securities
registered under the Securities Exchange Act of 1934.
BASIS OF PRESENTATION
The summary of significant accounting policies presented below is
designed to assist in understanding the Company's financial statements.
Such financial statements and accompanying notes are the representations
of the Company's management, who are responsible for their integrity
and objectivity. These accounting policies conform to accounting
principles generally accepted in the United States of America
("GAAP") in all material respects, and have been consistently
applied in preparing the accompanying financial statements.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting
periods. Actual results could differ from those estimates.
CONCENTRATION OF RISK
Financial instruments that potentially subject the Company to
concentrations of credit risk consist principally of cash. The Company
places its cash with high quality banking institutions. The Company
did not have cash balances in excess of the Federal Deposit Insurance
Corporation limit as of April 30, 2012.
INCOME TAXES
Under ASC 740, "Income Taxes", deferred tax assets and liabilities are
recognized for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. Deferred tax
assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Valuation
allowances are established when it is more likely than not that
some or all of the deferred tax assets will not be realized. As
of April 30, 2012, there were no deferred taxes.
6
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
EARNINGS PER COMMON SHARE
Basic earnings per common share excludes dilution and is computed by
dividing net income by the weighted average number of common shares
outstanding during the period. Diluted income per common share reflect
the potential dilution that could occur if securities or other contracts
to issue common stock were exercised or converted into common stock or
resulted in the issuance of common stock that then shared in the loss
of the entity. As of April 30, 2012, there are no outstanding dilutive
securities.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company follows guidance for accounting for fair value measurements
of financial assets and financial liabilities and for fair value
measurements of nonfinancial items that are recognized or disclosed
at fair value in the financial statements on a recurring basis.
Additionally, the Company adopted guidance for fair value measurement
related to nonfinancial items that are recognized and disclosed at fair
value in the financial statements on a nonrecurring basis. The guidance
establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and the
lowest priority to measurements involving significant unobservable
inputs (Level 3 measurements). The three levels of the fair value
hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets
for identical assets or liabilities that the Company has the ability
to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level 3 inputs are unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which a fair measurement in
its entirety falls is based on the lowest level input that is significant
to the fair value measurement in its entirety.
NOTE 2 - GOING CONCERN
The Company is in the development stage and has incurred a net loss
and an accumulated deficit of $750 since its inception on April 23, 2012.
The Company's continuation as a going concern is dependent on its ability
to generate sufficient cash flows from operations to meet its obligations,
which it has not been able to accomplish to date, and /or obtain
additional financing from its stockholders and/or other third parties.
These financial statements have been prepared on a going concern
basis, which implies the Company will continue to meet its obligations
and continue its operations for the next fiscal year. The continuation
of the Company as a going concern is dependent upon financial support
from its stockholders, the ability of the Company to obtain necessary
equity financing to continue operations, successfully locating and
negotiate with a business entity for the combination of that target
company with the Company.
Tiber Creek Corporation, a company affiliated with management, will
pay all expenses incurred by the Company until a change in control
is effected without repayment. There is no assurance that the Company
will ever be profitable. The financial statements do not include any
adjustments to reflect the possible future effects on the recoverability
and classification of assets or the amounts and classifications of
liabilities that may result should the Company be unable to continue as
a going concern.
7
______________________________________________________________________
ENTREE ACQUISITION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
Notes to Financial Statements
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
Adopted
In May 2011, the FASB issued ASU 2011-04, "Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and
International Financial Reporting Standards (IFRS) of Fair Value
Measurement Topic 820." ASU 2011-04 is intended to provide a
consistent definition of fair value and improve the comparability
of fair value measurements presented and disclosed in financial
statements prepared in accordance with U.S. GAAP and IFRS. The
amendments include those that clarify the FASB's intent about the
application of existing fair value measurement and disclosure
requirements, as well as those that change a particular principle
or requirement for measuring fair value or for disclosing information
about fair value measurements. This update is effective for annual
and interim periods beginning after December 15, 2011. The adoption
of this ASU did not have a material impact on our financial statements.
NOTE 4 STOCKHOLDERS' EQUITY
The Company is authorized to issue 100,000,000 shares of common
stock and 20,000,000 shares of preferred stock. As of April 30, 2012,
20,000,000 shares of common stock and no preferred stock were issued
and outstanding.
On April 30, 2012, the Company issued 20,000,000 common shares to
two directors and officers for $2,000 in cash.
A shareholder made a contribution in the amount of $750.
NOTE 5 SUBSEQUENT EVENTS
In preparing these financial statements, the Company has evaluated
events and transactions for potential recognition or disclosure through
May 30, 2012, the date the financial statements were available to be
issued, and identified no events or transactions that required
recognition or disclosure.
8
______________________________________________________________________
INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION
3.1* Certificate of Incorporation of Entree
Acquisition Corporation
3.2* By-Laws of Entree Acquisition Corporation
3.3* Specimen stock certificate of Entree
Acquisition Corporation
* Previously filed with filing of Form 10 on May 30, 2012.
______________________________________________________________________
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of
1934, the Registrant caused this registration statement to be signed on
its behalf by the undersigned thereunto duly authorized.
ENTREE ACQUISITION CORPORATION
By: /s/ James Cassidy, President
Date: July 30, 2012