AGREEMENT AND PLAN OF MERGER
EXHIBIT 10-1
AGREEMENT AND PLAN OF MERGER
This Agreement and Plan of Merger (the "Agreement") is made as of this 17th day of December 2015 by and among (i) Cantabio Pharmaceuticals Inc., a Delaware corporation (the "Company"), (ii) Cantabio Acquisition Inc., a Delaware corporation ("Merger Sub"), (iii) Gardedam Therapeutics, Inc., a Delaware corporation ("Gardedam"), (iv) Xx. Xxxxxxx Xxxx, (v) Xx. Xxxxxx Xxxxx Xxxxxx and (vi) Simon Peace (each a “Party” and together the “Parties”).
WHEREAS, the respective Boards of Directors of the Company, Merger Sub and Gardedam (the "Constituent Corporations") deem it advisable and in the best interests of the Constituent Corporations, and their respective stockholders, that Merger Sub be merged with and into the Gardedam (the "Merger") and the Merger be effected pursuant to the Delaware General Corporation Law (the "DGCL");
EXHIBIT 10.1, 1
ARTICLE I
(a) Merger Sub shall merger with and into Gardedam. Upon completion of the Merger, the Gardedam shall be the surviving entity and the separate corporate existence of Merger Sub shall thereupon cease. Gardedam, as the surviving corporation in the Merger and a wholly-owned subsidiary of the Company shall continue its existence under the name “Gardedam Therapeutics, Inc." and shall continue to be governed by the DGCL. As consideration for the Merger, (i) the shareholders of Gardedam relinquish all ownership of shares of capital stock Gardedam to the Company in exchange for the issuance of approximately 15,500,000 common shares by the Company (the “Merger Common Stock”) and such Merger Common Stock shall be issued to the Gardedam shareholders on a pro rata basis as to their ownership of Gardedam, (ii) Xx. Xxxxxxx Xxxx Agrees to return to the Company’s treasury 13,500,000 shares of the Company’s Common Stock, (iii) Xx. Xxxxxx Xxxxx Xxxxxx agrees to return 1,000,000 shares of the Company’s Common Stock to treasury and (iv) Simon Peace agrees to return 1,000,000 shares of the Company’s Common Stock to treasury.
(b) The Articles of Incorporation and By-laws of Gardedam, as in effect immediately prior to the Effective Time, shall thereafter be the articles of incorporation and by-laws of the surviving corporation in the Merger until duly amended or repealed.
(c) The members of the Board of Directors of Gardedam immediately prior to the Effective Time shall thereafter be confirmed as members of the Board of Directors of Gardedam as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified in the manner provided in the articles of incorporation and by-laws of the surviving corporation in the Merger, or as otherwise provided by law.
(d) The officers of Gardedam immediately prior to the Effective Time shall be confirmed as the initial officers of Gardedam as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified.
EXHIBIT 10.1, 2
(a) At the Effective Time, Merger Sub shall be merged with and into Gardedam and the separate existence of Merger Sub shall cease. Gardedam, as the surviving corporation in the Merger, shall thereupon and thereafter possess all the rights, privileges, powers and franchises, of a public or of a private nature, and be subject to all restrictions, liabilities and duties of each of Gardedam and Merger Sub and shall continue its existence as a Mexican corporation.
(b) The parties to this Agreement intend that the Merger shall constitute a tax free "reorganization". Each party to this Agreement hereby agrees to file all tax returns, reports, or other documents, and to act in all other respects, in a manner consistent therewith.
(i) At the Effective Time, by virtue of the Merger and without any action on the part of the holders of capital stock of Gardedam or of Merger Sub, each share of Gardedam Common Stock issued and outstanding immediately prior to the Effective Time (other than the shares of Gardedam Common Stock being canceled pursuant to Section 1.5(a)), shall be converted into the right to receive, 14.824 shares of Merger Common Stock (the "Merger Ratio") for each share of Gardedam Common Stock without the need to surrender the certificate representing the Gardedam Common Stock. Any fractional share of Merger Common Stock that would otherwise be issued pursuant to this Agreement shall be rounded up to the nearest whole share of common stock of the Company.
(ii) Each share of Gardedam Common Stock so converted at the Effective Time shall be immediately canceled and retired without need for surrender to the Company and shall cease to exist, and each certificate which theretofore represented shares so converted and canceled shall thereafter cease to have any rights with respect to such shares except the right to receive the Merger Common Stock.
EXHIBIT 10.1, 3
ARTICLE II
Gardedam represents and warrants to each Party as follows:
SECTION 2.1 Organization; Standing and Power. Gardedam is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted. Copies of the Articles of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of Gardedam have heretofore been delivered to the Company and are true, correct and complete. Gardedam is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.
(a) Gardedam has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of Gardedam whose consent is required in accordance with the laws of Delaware, to consummate the transactions contemplated by this Agreement.
EXHIBIT 10.1, 4
(b) Except for the consent and approval of the stockholders of Gardedam, the execution, delivery and performance of the Agreement by Gardedam and the consummation by Gardedam of the transactions contemplated by the Agreement will not require on the part of Gardedam any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any federal, state or local government or any court, administrative or regulatory agency or commission or other governmental agency or authority, domestic or foreign (a "Governmental Authority") or any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization or other entity (including a Governmental Authority) (a "Person").
EXHIBIT 10.1, 5
(a) All federal, state, county, local and foreign income, excise, property and other tax returns required to be filed by Gardedam have been timely filed and all such duly filed tax returns are true and correct in all material respects. All required taxes, fees or assessments have been paid or an adequate reserve therefore has been established (in accordance with GAAP) in the Financial Statements. The federal income tax returns and state and foreign income tax returns of Gardedam have not been audited by any taxing authority and Gardedam has not received any notice of deficiency or assessment from any taxing authority with respect to liability for taxes which has not been fully paid or finally settled. No state, local, foreign or other taxing authority has proposed in writing any additional taxes, interest or penalties with respect to Gardedam or any of its operations or businesses. There are no pending, or to the knowledge of Gardedam, threatened, tax claims or assessments, and there are no pending, or to the knowledge of Gardedam, threatened, tax examinations by any taxing authorities. Gardedam has not given any waivers of rights (which are currently in effect) under applicable statutes of limitations with respect to taxes of Gardedam for any taxable period. There are no liens for taxes upon the assets of Gardedam except for statutory liens for current taxes not yet due and payable or which may thereafter be paid without penalty or are being contested in good faith. Gardedam has not filed a request for changes in accounting methods within the last three (3) years which change would affect the accounting for tax purposes, directly or indirectly, of its business.
EXHIBIT 10.1, 6
(b) Gardedam does not have any liability for taxes of any person as a result of being a member of an affiliated, consolidated, combined or unitary group, nor is it bound by any obligation under any tax sharing agreement, tax indemnification agreement or similar contract or arrangement.
EXHIBIT 10.1, 7
ARTICLE III
The Company and Merger Sub each jointly and severally represents and warrants to Gardedam as follows with respect to Merger Sub:
SECTION 3.1 Organization; Capitalization. Merger Sub is a duly organized and validly existing corporation in good standing under the laws of Delaware, authorized to issue only the Merger Sub Shares. There are no issued or outstanding options or warrants to purchase Merger Sub Shares or any issued or outstanding securities of any nature convertible into Merger Sub Shares, or any agreements or understandings to issue any Merger Sub Shares, options or warrants.
(a) Merger Sub has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.
(b) Except for the filing of the Articles of Merger and the Certificate of Merger, the execution, delivery and performance of the Agreement by Merger Sub and the consummation by Merger Sub of the transactions contemplated by the Agreement will not require on the part of Merger Sub any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.
EXHIBIT 10.1, 8
ARTICLE IV
The Company hereby represents and warrants to Gardedam as follows, except to the extent set forth on the corresponding sections of the schedule of exceptions attached hereto and made a part hereof:
SECTION 4.1 Organization; Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted. Copies of the Certificate of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of the Company that have heretofore been delivered to Gardedam are true, correct and complete. The Company is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.
(a) The Company has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of the Company whose consent is required in accordance with the laws of the State of Delaware to consummate the Reincorporation and the transactions related thereto, and to consummate the transactions contemplated by this Agreement.
(b) The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated by the Agreement will not require on the part of the Company any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.
EXHIBIT 10.1, 9
(a) The authorized capital stock of the Company consists of 250,000,000 shares of Common Stock. The Company declares that all such stock, as referred below, is the total amount of stock of the Company and there is no preferred stock or other different from such as above mentioned. All of the issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non assessable. All of the issued and outstanding shares of capital stock of the Company have been offered, issued and sold by the Company in compliance with all applicable federal and state securities laws. No securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated hereby. There are no outstanding options, warrants or other rights to acquire capital stock of the Company and there are no securities, options, warrants, calls, rights, commitments, agreements, understandings or arrangements to which the Company is a party or by which the Company is or may become bound to issue additional shares of capital stock of the Company, or securities or rights convertible or exchangeable into shares of capital stock of the Company.
(b) There are no outstanding obligations, contingent or otherwise, of the Company to redeem, purchase or otherwise acquire any capital stock or other securities of the Company.
EXHIBIT 10.1, 10
(c) There are no stockholder agreements, voting trusts or other agreements or understandings to which the Company is a party or by which the Company is bound relating to the voting of any shares of the capital stock of the Company.
SECTION 4.8 Investment Company/Investment Adviser. The business of the Company does not require it to be registered as an investment company, as such term is defined under the Investment Company Act of 1940, as amended, nor does it require the Company to be registered as an investment adviser, as such term is defined under the Investment Advisers Act of 1940, as amended, or under applicable Delaware State laws.
EXHIBIT 10.1, 11
ARTICLE V
SECTION 5.1 Xx. Xxxx represents to Gardedam that (i) he is the sole owner of 13,500,000 of shares of common stock of the Company (the “Xxxx Shares”), (ii) that no liens, judgments or other instruments exist over the Xxxx Shares or Xx. Xxxx that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Xxxx Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.
SECTION 5.2 Xx. Xxxxxx represents to Gardedam that (i) he is the sole owner of 1,000,000 of shares of common stock of the Company (the “Xxxxxx Shares”), (ii) that no liens, judgments or other instruments exist over the Xxxxxx Shares or Xx. Xxxxxx that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Xxxxxx Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.
EXHIBIT 10.1, 12
SECTION 5.3 Mr. Peace represents to Gardedam that (i) he is the sole owner of 1,000,000 of shares of common stock of the Company (the “Peace Shares”), (ii) that no liens, judgments or other instruments exist over the Peace Shares or Mr. Peace that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Peace Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.
ARTICLE VI
SECTION 6.1 None of the representations, covenants and warranties contained in this Agreement (including, but not limited to, all statements contained in any certificate or other instrument delivered by or on behalf of the Company, Merger Sub, or Gardedam pursuant hereto or in connection with the transactions contemplated hereby) shall survive the Effective Time, except for the covenants and agreements that by their terms apply or are to be performed in whole or in part after the Effective Time.
ARTICLE VII
The obligation of Merger Sub and the Company to consummate the Merger and other transactions contemplated hereby is subject to the satisfaction or waiver of the following conditions prior to the Closing Date:
EXHIBIT 10.1, 13
ARTICLE VIII
The obligations of Gardedam to consummate the Merger are subject to the following conditions prior to the Closing Date:
EXHIBIT 10.1, 14
ARTICLE IX
ARTICLE X
EXHIBIT 10.1, 15
ARTICLE XI
If to the Company:
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0000 Xxxx Xxxxxxxx Xxxx #000
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Xxxx Xxxx
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XX 00000
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XXX
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xxxx@xxxxxxxx.xxx
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If to Gardedam :
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0000 Xxxxxxxx Xx #000-0000
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Xxx Xxxxxxxxx, XX 00000
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XXX
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xxxxx@xxxxxxxxxxxxxxxxxxxx.xxx
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or such other address or email address as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date delivered personally or by overnight delivery service or emailed or, if mailed, five (5) business days after the date of mailing.
(a) Any provision of this Agreement with respect to transactions contemplated hereby may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Company and Gardedam; or in the case of a waiver, by the party against whom the waiver is to be effective.
(b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.
EXHIBIT 10.1, 16
EXHIBIT 10.1, 17
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EXHIBIT 10.1, 18
By: ________________________________
Name:
Title:
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XX. XXXXXXX XXXX
By: ________________________________
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GARDEDAM THERAPEUTICS INC.
By: ________________________________
Name:
Title:
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XX. XXXXXX XXXXX XXXXXX
By: ________________________________
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CANTABIO ACQUISITION INC.
By: ________________________________
Name:
Title:
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SIMON PEACE
By: ________________________________
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EXHIBIT 10.1, 19
SCHEDULE A
EXHIBIT 10.1, 20
Section 2.6 Capitalization – Gardedam Therapeutics [---].
Authorized Shares of Common Stock:
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10,000,000
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Authorized Shares of Preferred Stock:
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0
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Outstanding Shares of Common Stock:
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1,000,000
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Shares of Common Stock Issuable Upon Exercise of Outstanding Options/Warrants:
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0
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Fully-Diluted Common Shares Outstanding:
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1,000,000
|
EXHIBIT 10.1, 21
Exhibit A
STATE OF DELAWARE CERTIFICATE OF MERGER OF DOMESTIC CORPORATIONS
Pursuant to Title 8, Section 251(c) of the Delaware General Corporation Law, the undersigned corporation executed the following Certificate of Merger:
FIRST: The name of the surviving corporation is Gardedam Therapeutics Inc. and the name of the corporation being merged into this surviving corporation is Cantabio Acquisition Inc.
SECOND: The Agreement of Merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations.
THIRD: The name of the surviving corporation is Gardedam Therapeutics Inc., a Delaware corporation.
FOURTH: The Certificate of Incorporation of the surviving corporation shall be its Certificate of Incorporation.
FIFTH: The merger is to become effective on the date hereof.
SIXTH: The Agreement of Merger is on file at [Gardedam address], the place of business of the surviving corporation.
By:____________________________________ Authorized Officer Name:____________________________________ Print or Type Title:____________________________________
EXHIBIT 10.1, 22