Company: LIFD
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001096906-25-000819
Chunk: 181

Company: LFTD PARTNERS INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 181
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 Process The structure of the Company’s participation in business opportunities and ventures will continue to be situational.  The Company is likely to structure future acquisitions as an acquisition of 100% of a target company’s equity ownership interest via a merger that qualifies as a so-called tax-free reorganization, or as an asset purchase. However, in unusual situations, the Company may be willing to consider alternative deal structures.  In deals that are structured as tax-free reorganizations, it is expected that a majority of the merger consideration paid by the Company will be in the form of newly issued shares of the Company, which could result in substantial dilution to the percentage ownership of our current stockholders. The Company’s present management and shareholders may not have control of a majority of our voting shares following a merger or purchase of stock. It is possible that the shareholders of the acquired entity or the persons who provide the capital to the Company to finance a merger or purchase of stock will gain control of the Company’s voting stock and the Company’s directors may resign and new directors may be appointed without any vote by the shareholders. Those directors are entitled to replace the Company’s officers without stockholder vote.

 F-34Table of Contents

 Closing such purchases of stock or so-called tax-free reorganizations may require the Company to raise millions of dollars of capital, in order to pay the cash portion of the acquisition consideration. The Company can provide no assurance or guaranty whatsoever that it will be able to raise such millions of dollars of capital on acceptable terms and conditions, if at all. An Investment Committee appointed by the Company’s Board of Directors, currently consisting of GJacobs, NWarrender, and WJacobs, will review material furnished to it and will vote whether or not the Investment Committee believes a potential acquisition is in the Company’s best interests and the interests of the Company’s shareholders. If the Investment Committee votes unanimously to approve a potential acquisition, then such acquisition will be presented to the Board of Directors of the Company for their review and a vote. The Company does not intend to proceed forward with a potential acquisition without the unanimous approval of the Investment Committee and approval by a majority of the Company’s Board of Directors. The Company intends to source acquisition opportunities through GJacobs, NWarrender, WJacobs, and other directors and their contacts, and in some cases through finders. These contacts include professional advisors such as attorneys and accountants, securities broker dealers, investment bankers and other members of the financial community, other