Monday, October 12, 2015

Cherubim Interests Inc. (CHIT) Introduces Package of Initiatives to Enhance Stockholders’ Equity

This afternoon, Cherubim Interests Inc. issued a press release announcing a series of carefully crafted initiatives designed to enhance net stockholders’ equity.

“This package of initiatives will serve as a blueprint to acquire and attract investment and equity into our company,” said Patrick Johnson, CEO of Cherubim Interests Inc. “As we further prove our hybrid business model, we will escalate our game-plan with the Forward Acquisition of numerous undervalued assets and this program will only enhance the processes in doing so.”

The company’s strategy was laid out as follows:

– maintain its public disclosure on OTC Markets by remaining current in its filing obligations;
– amend its Articles of Incorporation and Corporate Bylaws to create a series of Anti-Dilutive, Convertible Preferred Shares to protect its majority stakeholders;
– insulate the stockholders from past, present, or future dilution in the open market by providing these anti-dilutive securities as a dividend payment;
– use convertible preferred securities as currency to exchange its derivative liabilities that exist on the financial statements in the form of affiliate and non-affiliate debt;
– execute an S-1 filing so that its new preferred stockholders, who have converted into a predetermined amount of common stock, can see their securities become free trading.

According to the press release, securities will soon become available to the common shareholders, pending FINRA approval. The equity derivatives are restricted for one year and will turn into a predetermined amount of common stock through issuance resolutions on the part of management, and convert at the par value of the public company.

“We will further strengthen investor confidence by committing ourselves to stock and cash dividends and by removing both affiliate and non-affiliate debt as this program will build net stockholders’ equity on the balance sheet and bolster current and future investor confidence,” added Johnson.

It is expected that a significant portion of the company’s principal affiliate debt will be retired for these instruments, while the interest will be converted into restricted common stock. The defaulted interest portion of the mature, secured, third-party non-affiliate debt will be assigned and converted into equity by their bond holders to remove any future compounding derivative liabilities on the balance sheet.

“This is a process we are committed to, and our resolve to complete these milestones will be a function of effort, teamwork, and time,” concluded Johnson. “Throughout this process we will maintain a transparent dialogue with our investors as to the clarity of implementing those objectives. And as we meet certain milestones, the investment community will be more thoroughly aware of this through our disclosures and public records.”

For more information, visit www.cherubiminterests.com

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