ORGANIZATION AND DESCRIPTION OF BUSINESS
|6 Months Ended|
Jun. 30, 2012
|Organization And Description Of Business|
|Organization and Description of Business||
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
American Strategic Minerals Corporation (the Company), formerly Verve Ventures, Inc., was incorporated under the laws of the State of Nevada on February 23, 2010. The Company intended to provide waste removal and disposal services to corporate and individual clients in the United Kingdom. On December 7, 2011, the Company filed a Certificate of Amendment to its Articles of Incorporation with the Secretary of State of the State of Nevada in order to change its name to American Strategic Minerals Corporation from Verve Ventures, Inc., and change the Companys authorized capital to 200,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value $0.0001 per share. On August 1, 2012, the shareholders holding a majority of the Companys voting capital voted in favor of (i) changing the name of the Company to Fidelity Property Group, Inc. (the Name Change) and (ii) the adoption the 2012 Equity Incentive Plan and reserving 10,000,000 shares of common stock for issuance thereunder (the 2012 Plan). The Board of Directors of the Company approved the Name Change and the adoption of the 2012 Plan on August 1, 2012. During June 2012, the Company decided to discontinue its exploration and potential development of uranium and vanadium minerals business and focus its activities exclusively on its new business segment, which is in the business of acquiring, renovating, and selling real estate properties. The Companys Board of Directors determined the name Fidelity Property Group, Inc. better reflects the long-term strategy and identity of the Company going forward. The Company has not yet filed an amendment to its Articles of Incorporation with the Secretary of State of Nevada.
The Company is in the business of acquiring, renovating, and selling real estate properties (primarily residential in nature). The Company intends to seek to sell its real estate holdings within 6 months from the date of purchase.
The Companys objectives include the following:
To purchase distressed single family homes, principally within Southern California, and renovate, and market its properties for resale and;
To purchase distressed multi-unit residential real estate and to renovate and operate as income producing property, generating cash flow and long-term capital appreciation.
On January 26, 2012, the Company had entered into a Share Exchange Agreement (the Exchange Agreement) with American Strategic Minerals Corporation, a Colorado corporation (Amicor) and the shareholders of Amicor (the Amicor Shareholders). Upon closing of the transaction contemplated under the Exchange Agreement (the Share Exchange), on January 26, 2012, the Amicor Shareholders transferred all of the issued and outstanding capital stock of Amicor to the Company in exchange for an aggregate of 10,000,000 shares of the common stock of the Company. The Share Exchange caused Amicor to become a wholly-owned subsidiary of the Company. Additionally, as further consideration for entering into the Exchange Agreement, certain Amicor Shareholders received ten-year warrants to purchase an aggregate of 6,000,000 shares of the Companys Common Stock with an exercise price of 0.50 per share (the Share Exchange Warrants). Prior to acquisition by the Company, Amicor owned certain mining and mineral rights.
Amicor, formerly Nuclear Energy Corporation, was incorporated under the laws of the State of Colorado on April 30, 2011. Amicor owns mining leases of federal unpatented mining claims and leases private lands in the states of Utah and Colorado for the purpose of exploration and potential development of uranium and vanadium minerals.
Prior to the Share Exchange, the Company was a shell company with no business operations.
The Share Exchange was accounted for as a reverse-merger and recapitalization. Amicor was the acquirer for financial reporting purposes and the Company was the acquired company. Consequently, the assets and liabilities and the operations reflected in the historical financial statements prior to the Share Exchange were those of Amicor and was recorded at the historical cost basis of Amicor, and the consolidated financial statements after completion of the Share Exchange included the assets and liabilities of the Company and Amicor, historical operations of Amicor and operations of the Company from the closing date of the Share Exchange.
On June 11, 2012, the Company terminated various leases related to its uranium mining claims (the Claims) consisting of: Cutler King Property (3 unpatented mining claims); Centennial-Sun Cup (42 unpatented mining claims); Bull Canyon (2 unpatented mining claims); Martin Mesa (51 unpatented mining claims); Avalanche/Ajax (8 unpatented mining claims) and Home Mesa (9 unpatented mining claims). The Company had acquired the Claims through the acquisition of Amicor on January 26, 2012. The decision by the Company to terminate these leases followed changes in management and direction of the Company, a review of the Uranium market, and the timing and costs expected to pursue the business. On June 11, 2012 the Company effectively ceased efforts to continue its mining exploration activities.
On June 11, 2012, the Company entered into a rescission agreement (the Rescission Agreement) with Amicor, and the Amicor Shareholders. Each of the Amicor Shareholders had previously received shares of the Companys common stock (and certain of the Amicor Shareholders also received warrants to purchase shares of the Companys common stock) (collectively, the Shareholder Securities) pursuant to the Exchange Agreement. Each of the Amicor Shareholders, with the exception of Mike Thompson, agreed to return the Shareholder Securities to the Company for cancellation and to enter into joint mutual releases with the Company. Furthermore, pursuant to the terms of the Rescission Agreement, George Glasier resigned from his position as President, Chief Executive Officer and Chairman of the Company; Kathleen Glasier resigned from her position as Secretary of the Company, Michael Moore resigned from his position as Chief Operating Officer and Vice President of the Company and each of David Andrews and Kyle Kimmerle resigned from their position as a director of the Company. As a result of the foregoing, the Company cancelled 9,806,667 shares of the Companys common stock and 4,800,000 warrants and terminated the mining leases entered into with the Amicor Shareholders. Additionally, the Company paid an aggregate of $132,000 to Amicor Shareholders upon the execution of the Rescission Agreement.
Under the terms of the Rescission Agreement, the Companys employment agreement with Mr. Glasier was terminated and all options, warrants and rights to acquire any shares of the Companys common stock, whether vested or unvested, were terminated as of the date of the Rescission Agreement. Additionally, under the terms of the Rescission Agreement, the Companys lease for certain office space, dated as of January 26, 2012 with Silver Hawk Ltd., an entity owned and controlled by George Glasier and Kathleen Glasier, was terminated.
On June 11, 2012, the Company and Pershing Gold Corporation (Pershing) effected the exercise of the Option Agreement executed in January 2012, through the assignment of Pershings wholly owned subsidiary, Continental Resources Acquisition Sub, Inc. (Acquisition Sub), (see Note 5). As a result of the assignment, Acquisition Sub became a wholly owned subsidiary of the Company and the Company acquired all of Pershings uranium assets.
The entire disclosure for the business description and basis of presentation concepts. Business description describes the nature and type of organization including but not limited to organizational structure as may be applicable to holding companies, parent and subsidiary relationships, business divisions, business units, business segments, affiliates and information about significant ownership of the reporting entity. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).
No definition available.