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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 1, 2014
Red Giant Entertainment, Inc.
(Exact name of registrant as specified in its charter)
Nevada 000-53310 98-0471928
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
614 E. Hwy 50, Suite 235, Clermont, FL 34711
(Address of principal executive offices) (Zip Code)
(866) 926-6427
(Issuer's telephone/facsimile numbers, including area code)
Not Applicable
(former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (See: General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17CFR240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17CFR240.13e-4(c))
SECTION 1 - REGISTRANT'S BUSINESS AND OPERATIONS
ITEM 1.01 - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
NEW NOTE ISSUANCE TO JSJ INVESTMENTS, INC. ("JSJ")
On July 25, 2014, we issued a $100,000 22% Convertible Note (the "JSJ Note") to
JSJ. The JSJ Note is due and payable on January 25, 2015 at a premium of 150% of
the principal amount upon approval and acceptance by JSJ, with the principal
balance of the note payable on demand. If we fail to repay the JSJ Note on
demand, a default interest rate of 22% shall also apply from such date. We may
not prepay this Note.
The JSJ Note is convertible into shares of our common stock at a conversion
price equal to the lower of 55% of the average of the three lowest trading
prices in (i) the 20 trading days prior to the date of conversion; or (ii) the
ten trading days prior to the execution of the JSJ Note. If we do not issue
shares to JSJ within three business days after receipt of a conversion notice,
we will be required to issue an additional 25% shares of the shares in the
conversion notice per day beginning on the fourth day following our receipt of a
conversion notice. This conversion price is subject to adjustment if we issue
any securities convertible into or exercisable for common stock where the
aggregate price of purchase and exercise per share is lower than the
then-existing conversion price.
In addition, if the aggregate price per share of any securities we issue that
are convertible into or exchangeable for, directly or indirectly, or exercisable
for common stock
The JSJ Note was issued to JSJ pursuant to the exemption from registration set
forth in Section 4(2) of the Securities Act of 1933 and regulations promulgated
thereunder. We believe that JSJ is an accredited investor and had adequate
information about us as well as the opportunity to ask questions and receive
responses from our management.
The description above of the JSJ Note does not purport to be complete and are
qualified in its entirety by reference to the full text of the JSJ Note filed as
Exhibit 4.1 hereto.
AMENDMENTS TO PRIOR NOTES ISSUED TO JSJ INVESTMENTS, INC. ("JSJ")
As disclosed in our Quarterly Report on Form 10-Q filed on July 23, 2014, we had
issued other convertible notes to JSJ on June 10, 2014 and July 11, 2014 (the
"Prior Notes"). On July 25, 2014, we also entered into amendments of the Prior
Notes increasing the interest rate on each Prior Note to 22% per annum from the
issue date of such Prior Note and increasing the default interest rate of each
Prior Note to 22% per annum from the maturity date of such Prior Note.
The description above of the Prior Notes and amendments thereto does not purport
to be complete and are qualified in its entirety by reference to the full text
of the form of amendments filed as Exhibit 4.2 hereto.
SECTION 2 - FINANCIAL INFORMATION
ITEM 2.03 - CREATION OF A DIRECT FINANCIAL OBLIGATION
See Item 1.01 above.
SECTION 3 - SECURITIES AND TRADING MARKETS
ITEM 3.02 - UNREGISTERED SALES OF EQUITY SECURITIES
See Item 1.01 above.
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On July 24, 2014, we issued 55,629,622 shares of our common stock to JMJ
Financial to convert $25,033.33 of the principal and interest owed under the
$335,000 Convertible Promissory Note dated as of June 13, 2013 filed as Exhibit
4.13 to our Annual Report on Form 10-K filed with the SEC on February 20, 2014.
The issuance was made pursuant to a July 22, 2014 notice of conversion.
On July 24, 2014, we issued 23,684,211 shares of common stock to Asher
Enterprises, Inc. to convert $22,500 in partial principal due under a 8%
Convertible Promissory Note dated as of January 7, 2014 in substantially the
form filed as Exhibit 4.9 to our Annual Report on Form 10-K filed with the SEC
on December 5, 2013. The issuance was made pursuant to a July 23, 2014 notice of
conversion.
On July 30, 2014, we issued 11,649,485 shares of common stock to Asher
Enterprises, Inc. to convert $11,300 in principal and interest due, constituting
all remaining principal and interest due, under a 8% Convertible Promissory Note
dated as of January 7, 2014 in substantially the form filed as Exhibit 4.9 to
our Annual Report on Form 10-K filed with the SEC on December 5, 2013. The
issuance was made pursuant to a July 28, 2014 notice of conversion.
As of August 1, 2014, we have 2,262,498,291 shares of common stock issued and
outstanding.
SECTION 9 - EXHIBITS
ITEM 9.01 - EXHIBITS
Exhibit
Number Description
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4.1 22% Convertible Note between the Registrant and JSJ Investments, Inc.
dated July 25, 2014
4.2 Form of Amendment to Notes to JSJ Investments, Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Red Giant Entertainment, Inc.
Dated: August 1, 2014 /s/ Benny R. Powell
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By: Benny R. Powell
Its: Chief Executive Officer, President,
Chief Financial Officer, and Secretary