Each one in plain English, with the numbers worked through for a shareholder.
21 Dec 2018financial restatement● Neutral
This amendment only adds a letter from MaloneBailey, dated December 20, 2018, agreeing with the company's statement that the June 30, 2018 quarterly report should not be relied on; the auditor takes no position on the other statements. It adds no new facts beyond the December 12 restatement notice.
On December 6, 2018, after the auditor MaloneBailey advised it to re-evaluate, the company (now CannAwake Corporation, based in Nipton, CA) said its June 30, 2018 quarterly financials should not be relied on. The error was a 'deemed dividend' charged on the Series A preferred stock held by its controlling stockholder; it will be removed in a restated quarterly report. The filing gives no dollar amount for the error.
The Nipton deal closed (filing cites April 5, 2018): the company issued 160,000 Series A preferred shares, convertible into 160,000,000 common shares, to American Green for all of Nipton, Inc., which owns the real estate in the township of Nipton, California. American Green now holds about 82% of the common stock and will manage the project under a 10-year contract; Santiago Peralta resigned as director and Interim CEO. The company says it is shifting from oil and gas to cannabis-oriented real estate development, says it sold its Argentine oil and gas business (SAHF) while keeping rights to part of some sale proceeds (the filing gives the year as '1917', evidently a typo), and plans to sell its remaining U.S. oil and gas investments. This completes the March agreement, ends the Argentina focus in the earlier history, and dilutes existing holders.
On March 19, 2018 the company (then named Delta International Oil & Gas) signed an agreement, dated March 14, 2018, to buy all of Nipton, Inc. from American Green, Inc. in exchange for Series A preferred stock convertible into 160,000,000 common shares. If it closes as expected in the next several weeks, American Green would own about 82% of the common stock, so existing shareholders would be heavily diluted and control would change.