8-K
Kaya Holdings, Inc. (KAYS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): December 14, 2020
| Kaya Holdings, Inc. | ||
|---|---|---|
| (Exact name of registrant as specified in its charter) | ||
| Delaware | 333-177532 | 90-0898007 |
| --- | --- | --- |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 916 Middle River Drive, Suite 316,<br><br> <br>Fort Lauderdale, FL | 33304 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s<br> telephone number including area code: (954) 892-6911 | ||
| --- | ||
| (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 Company under any of the following provisions:
| ☐ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br> material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
| --- | --- |
| ☐ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| None |
As used in this Current Report on Form 8-K, and unless otherwise indicated, the terms “the Company,” “Kaya Holdings, Inc.,” “we,” “us” and “our” refer to Kaya Holdings, Inc. and its subsidiaries.
| Item 5.03 | Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year. |
|---|
The disclosure set forth in Item 8.01 of this Current Report on Form 8-K is incorporated into this item by reference.
| Item 8.01 | Other Matters. |
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On December 14, 2020, we issued a press release announcing that at the opening of trading on December 15, 2020, we will effect a reverse split of our common stock at a ratio of 1:15.
A copy of the press release is filed as Exhibit 99.1 to this report.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 3.1 | Certificate of Amendment to Certificate of Incorporation of Kaya Holdings, Inc. |
| 99.1 | Press Release dated December 14, 2020, announcing reverse stock split |
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.
| Dated:<br> December 16, 2020 | KAYA HOLDINGS, INC. | |
|---|---|---|
| By: | /s/<br> Craig Frank | |
| Craig Frank,<br><br> <br>Chief Executive Officer |
Exhibit3.1
CERTIFICATEOF AMENDMENT TO
CERTIFICATEOF INCORPORATION OF
KAYAHOLDINGS, INC.
Pursuant to the requirements of Section 242 of the Delaware General Corporation Law, the undersigned, Craig Frank, hereby certifies that he is the duly elected and acting President of KAYA HOLDINGS, INC., a Delaware corporation (the “Corporation”), and does hereby make, adopt and file this Certificate of Amendment to Certificate of Incorporation on behalf of the Corporation:
1. By the written consent of all the members of the Board of Directors of the Corporation and the holders of capital stock having a majority of the issued and outstanding voting rights of the Corporation dated August 26, 2020, the Corporation adopted resolutions approving the amendment set forth below.
2. Article IV of the Corporation's Certificate of Incorporation is hereby amended by adding the following language:
“Each share of common stock of the Corporation issued and outstanding as of the record date set by the Corporation will be subject to a 1-for-15 reverse stock split, with all fractional shares being rounded up to the nearest whole share. The par value of the shares of common stock will remain $0.0001. The reverse stock split (a) will not change the number of authorized shares of common stock or preferred stock; and (b) shall become effective upon receipt of FINRA approval of the corporate action.”
INWITNESS WHEREOF, the undersigned, being the President of the Corporation, has signed this Certificate of Amendment to the Certificate of Incorporation this 9^th^ day of December, 2020.
| KAYA HOLDINGS, INC. | |
|---|---|
| By: | /s/<br> Craig Frank |
| Craig Frank, President |
Exhibit 99.1
KAYA HOLDINGS,INC. ANNOUNCES 1-FOR-15 REVERSE STOCK SPLIT – SHARES TO BEGIN TRADING AS KAYSD
Fort Lauderdale, Florida – December 14, 2020 – Kaya Holdings, Inc. (OTCQB: KAYS) (“KAYS” or the “Company”), today announced that FINRA has approved a 1-for-15 Reverse Split of the Company’s common stock (the “Reverse Split”). As a result, every 15 pre-Reverse Split shares of common stock outstanding will automatically combine into one new share of post-Reverse Split common stock without any action on the part of the holders.
Craig Frank, CEO of KAYS, commented, “We have taken this positive step to reduce the number of outstanding shares of KAYS common stock which we anticipate will help to enhance liquidity, maximize valuation, and make the Company more attractive to potential investors of all sizes, particularly institutional and international investors.”
The Company’s common stock will begin trading on a post-Reverse Split basis at the opening of trading on Tuesday, December 15, 2020. In connection therewith, the Company's ticker symbol will be KAYSD for twenty (20) trading days to designate that it is trading on a post-Reverse Split basis. In addition, our post-Reverse Split common stock will trade under the new CUSIP Number 486567 209.
Following the Reverse Split, the number of shares of the Company’s issued and outstanding common stock will have been reduced from 213,960,112 to approximately 14,264,008. The Reverse Split will also apply to shares of common stock issuable upon the exercise of outstanding warrants and stock options and the conversion of outstanding promissory notes and shares of Series C Preferred Stock. No fractional shares will be issued as a result of the Reverse Split. Any fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share on a per stockholder basis.
The Company expects that stockholders holding shares of KAYS common stock at registered brokerage firms or at the transfer agent will have the Reverse Split transaction processed automatically in their accounts over the next few days. Stockholders holding physical stock certificates may request new certificates evidencing their post-Reverse Split shares by contacting the Company’s transfer agent, Pacific Stock Transfer, at either info@pacificstocktransfer.com or 1-800-785-7782.
About KayaHoldings, Inc.(www.kayaholdings.com)
Kaya Holdings, Inc. ("KAYS") is a touch-the-plant vertically integrated legal cannabis company operating a number of majority-owned subsidiaries that retail, cultivate, produce and distribute premium medical and recreational cannabis products, including flower, concentrates, oils and extracts, cannabis-infused foods and beverages, topicals and cannaceuticals. KAYS is a fully reporting, US-based publicly traded company, listed for trading on the OTCQB Tier of the over-the-counter market under the symbol OTCQB:KAYS.
Summaryof Operations
KAYS corporate structure includes the following three majority-owned subsidiaries, each responding to various demands and opportunities in the cannabis industry:
MarijuanaHoldings Americas, Inc. owns the Kaya Shack™ brand of licensed medical and recreational marijuana stores (www.kayashack.com) and the Kaya Farms™ brand of cannabis production and processing operations that operate in the United States. KayaBrands USA, Inc. owns a wide range of proprietary brands of cannabis extracts, oils, pre-rolls, topicals, food and beverages, cannaceuticals and related accessories. Kaya Brands International, Inc., was founded to serve as the vehicle for the Company's non-U.S. operations including retail franchising in Canada and cultivation activities in Greece and Israel.
MarijuanaHoldings Americas, Inc.- U.S. Cannabis Operations
Kaya Shack™Retail Cannabis Stores
In 2014, KAYS became the first United States publicly-traded company to own and operate a Medical Marijuana Dispensary. KAYS presently operates two Kaya Shack™ OLCC licensed marijuana retail stores to service the legal medical and recreational marijuana market in Oregon and is in the process of relocating a third retail cannabis license to serve as a delivery hub for the Eugene and Southern Oregon Cannabis Market.
Kaya Farms™
Eugene,Oregon Indoor Grow, Processing & Cannaceuticals Facility: The Company owns a 12,000 square foot Kaya Farms™ indoor grow and manufacturing facility in Eugene, Oregon, which serves as the Company's center for cultivation trials, method experiments, genetic research and cannabis infused product development. The Company is presently conducting limited operations at this location under a Management Agreement with Sunstone Farms, the current licensee. Pending the successful acquisition and transfer of other existing OLCC Marijuana Production and Processing licenses, KAYS intends to build out the facility and ramp up to full production.
*Lebanon,Oregon Farm & Greenhouse Facility:*KAYS owns a 26-acre parcel in Lebanon, Linn County, Oregon which it intends to construct an 85,000-square-foot Kaya Farms™ greenhouse cultivation and production facility. To date KAYS has received Linn County Zoning approvals and upon issuance of OLCC Licensing it will begin construction. The farm is intended for immediate development and provides the Company with a potential additional capacity of more than 100,000 pounds annually, to be expanded once export from Oregon to other U.S. States and foreign countries where cannabis use is legal is permitted. Kaya Farms™ operates in accordance with a Grow Operations manual, as well as manuals for compliance, employment matters and safety.
Kaya BrandsUSA, Inc.- Brand and Product Development
The Company maintains a genetics library of over 30 strains of cannabis and owns a number of proprietary brands in traditional and innovative cannabis categories including Kaya Buddies™ pre-rolls, Really Happy Glass™ cannabis accessories, and Kaya Gear™, company-related and cannabis-centric fashion. These brands are currently available at Kaya Shack™ stores.
The Company has made advances in the development of its Kumba Extracts™, Syzygy Extracts™, Pakalolo Juice Company™ Soothe Topicals™, Tony Giggles Pleasure Foods™ (frozen infused Italian entrees), Uptown Shaman™ (cannaceuticals), and Kaya Yums™ (chocolates, gummies, power bars) brands. Pending approval of our production and processing license, KAYS intends to begin a multi-state rollout planned in 2020 to the extent permitted by U.S. legal infrastructure. These brands are intended for all Kaya Shack™ stores, both corporate-owned and franchised.
Kaya BrandsInternational, Inc.- Foreign Cannabis Operations
After over six years of conducting "touch the plant" U.S. cannabis operations inside the strict regulatory confines of a public company, KAYS has formed a subsidiary, Kaya Brands International, Inc. ("KBI") to leverage its experience and expand into worldwide cannabis markets. KBI's current operations and initiatives include:
Kaya Kannabis-Kaya Farms™ Greece S.A. ("Kaya Farms Greece," a Greek corporation) is a majority owned subsidiary of KBI. The Company is in the final stages of completing their due diligence and expects to exercise their option (pursuant to terms of a previously disclosed 8-K filing) for Kaya Farms Greece to acquire a 50% interest in Greekkannabis, PC, an Athens, Greece based cannabis company which has received its license for the construction of a facility encompassing approximately 500,000 square feet of buildings on 15 acres of land outside of Athens, Greece to grow, process and export medical grade cannabis from Greece to the European Union and elsewhere.
**Kaya Farms™Israel- Kaya Shalvah LTD ("Kaya Farms Israel," an Israeli corporation)**is a majority owned subsidiary of KBI. Kaya Farms Israel is in the process of applying to various Israeli Government Agencies for a license to grow, process and export medical grade cannabis from Israel. Upon submission of the initial application to the Israeli Cannabis Authority, Kaya Shalvah intends to submit a bid to acquire 100 Dunams (approximately 25 acres) of land in Israel that is part of Greenegev, an Israeli Government backed Cannabinoid Ecosystem in Yerucham, Israel that is envisioned to become the Silicon Valley of Medical Cannabis Production and Research.
These twofacilities, as currently envisioned (and after obtaining successful financing, completing construction and obtaining final requisitelicensing), are configured to produce approximately 600,000 pounds of GMP Certified, Premium Medical Grade, Cannabis annuallyfor potential export to the European Union and elsewhere.
CanadianFranchising: KAYS has targeted Canada (the only G7 country that has legalized both medical and recreational cannabis production, sale and use on a national level) for its first international sale and operation of Kaya Shack™ cannabis store franchises, with a goal of 75-100 Kaya Shack™ Cannabis Retail locations throughout Canada through a multi-year structured rollout, subject to licensing and market conditions. KAYS has retained Toronto, Canada based law firm of Garfinkle Biderman, LLP to prepare the Franchise Disclosure Documents and related items for the sale of Kaya Shack™ cannabis store franchises in Canada. KAYS plans to ultimately expand its franchise operations to the U.S., as regulations and laws permit.
ImportantDisclosure
KAYS is planning execution of its stated business objectives in accordance with current understanding of state and local laws and federal enforcement policies and priorities as it relates to marijuana. Potential investors and shareholders are cautioned that KAYS and MJAI will obtain advice of counsel prior to actualizing any portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of marijuana products, engaging in said activities or acquiring existing cannabis production/sales operations). Advice of counsel with regard to specific activities of KAYS, federal, state or local legal action or changes in federal government policy and/or state and local laws may adversely affect business operations and shareholder value.
ForwardLooking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For more information contact Investor Relations: 561-210-7664