WEB NEWS Investor Alert
On March 27, 2012 Vodafun Limited, the wholly owned subsidiary of Amico Games Corp. (“we”, “us”, “our”) terminated a number of agreements with Galaxy Software (Guangzhou) Limited which terminated our VIE relationship with Galaxy. Vodafun had a variable interest entity (“VIE”) relationship with Galaxy Software (Guangzhou) Limited (“Galaxy”), a company incorporated under the laws of China. Galaxy operates a number of mobile phone games on networks in China.
In September of 2011, an internal report was cited, reportedly produced by the China Securities Regulatory Commission (“CSRC”), which asked China’s State Council, or the cabinet of the PRC, to take action against VIE structures. The report describes VIE structures as a “threat”. Our management believes that the PRC government has expressed increasing concern over foreign investors gaining substantial control over strategically important PRC companies without any governmental approval. Our management believes that it is in the best interest of our company to terminate the VIE with Galaxy and search out a new acquisition target which we can acquire as a wholly owned subsidiary. We cannot do this with Galaxy as telecommunication services are protected from foreign ownership under Chinese law.
Corporate Structure Info.
On March 27, 2012 Vodafun Limited, the wholly owned subsidiary of Amico Games Corp. (“we”, “us”, “our”) terminated a number of agreements with Galaxy Software (Guangzhou) Limited which terminated our VIE relationship with Galaxy. Vodafun had a variable interest entity (“VIE”) relationship with Galaxy Software (Guangzhou) Limited (“Galaxy”), a company incorporated under the laws of China. Galaxy operates a number of mobile phone games on networks in China.
In September of 2011, an internal report was cited, reportedly produced by the China Securities Regulatory Commission (“CSRC”), which asked China’s State Council, or the cabinet of the PRC, to take action against VIE structures. The report describes VIE structures as a “threat”. Our management believes that the PRC government has expressed increasing concern over foreign investors gaining substantial control over strategically important PRC companies without any governmental approval. Our management believes that it is in the best interest of our company to terminate the VIE with Galaxy and search out a new acquisition target which we can acquire as a wholly owned subsidiary. We cannot do this with Galaxy as telecommunication services are protected from foreign ownership under Chinese law.
Consequently, we have decided to terminate the Consulting Services Agreement, Equity Pledge Agreement, Business Operating Agreement, Exclusive Option Agreement and the Voting Rights Proxy Agreement we entered into with Galaxy on April 15, 2009.
CFO Trail
Investor Alert
Please be aware that internal controls have been down graded to not effective as of AMCG's fiscal 2011 first and second quarter 10Q.
Liquidity Requirements
We anticipate that we will meet our ongoing cash requirements by retaining income as well as through equity or debt financing. We plan to cooperate with various individuals and institutions to acquire the financing required to produce and distribute our products and anticipate this will continue until we accrue sufficient capital reserves to finance all of our productions independently.
Comments & Business Outlook
GUANGZHOU, China, Jan. 14, 2011 (GLOBE NEWSWIRE ) -- Amico Games Corp.
today announced that its registered users grew to 30,123,810 in November 2010, an increase of 317,147 over the previous month.
Share Structure
Post Merger Share Calculation :
Pre reverse merger outstanding shares: 48,000,000
29,800,000
Newly issued shares of Common Stock: 54,500,000
GeoTeam® best effort calculation of total post reverse merger outstanding shares assuming full conversions: 72,700,000
Source: SEC Form 8K (December 31, 2009)
