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):
October
25, 2011
INDIGO INTERNATIONAL,
CORP.
(Exact name of registrant as specified in its
charter)
Nevada
|
333-171423
|
68-0680858
|
(State or Jurisdiction
|
(Commission
|
(IRS Employer
|
of Incorporation)
|
File Number)
|
Identification No.)
|
Regus Continental Square, Rua Olimpíadas
205 - 4th
Floor, Vila Olímpia,
São Paulo, Brazil 04551-000
(Address and
telephone number of principal executive office)
Registrants telephone number, including area code:
55 11
3728 9441
68A Nowe Tloki Street, Wolsztyn, Poland, 64-200
(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 the registrant under
any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d
-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e -4(c))
TABLE OF CONTENTS
1
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
INFORMATION
This report contains forward-looking statements. These
statements relate to future events or our future financial performance. In some
cases, you can identify forward-looking statements by terminology such as may,
should, intends, expects, plans, anticipates, believes, estimates,
predicts, potential, or continue or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled Risk Factors commencing on page 3 of this current report,
which may cause our or our industrys actual results, levels of activity or
performance to be materially different from any future results, levels of
activity or performance expressed or implied by these forward-looking
statements.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity or performance. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.
As used in this report, the terms we, us, our and
Indigo mean Indigo International, Corp. unless otherwise indicated.
We are a development stage corporation. We are in the business
of providing consulting services to mushroom growers, and have a consulting
agreement in place with a customer.
Item 5.01 Changes in Control of Registrant
Pursuant to the terms of the Affiliate Stock Purchase Agreement
(the
Agreement
) dated October 25, 2011 between Ireneusz Antoni Nawrot
and Odelio R. Arouca, Mr. Arouca purchased 3,000,000 shares of common stock from
Mr. Nawrot.
The purchase price of the shares was US $30,000, which was paid
in cash and by the personal funds of Mr. Arouca.
Odelio Arouca now owns 3,000,000 of our shares of common stock,
which is 66.52% of our issued and outstanding shares of October 25, 2011.
Item 5.02 Departure of Directors or Certain Officers;
Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers
Effective October 25, 2011, Ireneusz Nawrot resigned as our
President, Secretary and Treasurer and Odelio Arouca was appointed as our CEO,
CFO, Secretary, Treasurer and to our companys board of directors, which
increased the current board of directors to two members.
There was no disagreement between Mr. Nawrot and our companys
policies or procedures and Mr. Nawrot remains on our board of directors.
There are no family relationships between Mr. Arouca and our
board of directors.
Mr. Arouca has over eight years of experience in private
equity. Mr. Arouca worked for Pátria Investimentos, a Brazilian private equity
firm partially owned by the Blackstone Group, where he had an extensive
involvement in monitoring and managing of portfolio companies. Most recently, he
worked as Director of New Business and Secretary of the board of directors at
DASA [DASA3.SA], a successful private equity case and currently the largest
medical diagnostic company in Latin America, with market capitalization of over
U$3.0 billion.
Mr. Arouca has experience with mergers of businesses acquired
by DASA over time. He acted in the companys IPO and led its follow-on equity
offering of approximately US$300 million. Mr. Arouca structured DASAs Investor
Relations area, representing the company worldwide. He was also responsible for
structuring the issuing of US$100 million in securities used to finance further acquisitions. Mr.
Arouca holds an MBA from The University of Chicago Booth School of Business and
a Bachelors Degree in Business Administration from Fundação Getulio Vargas São
Paulo - Brazil.
2
Ireneusz Nawrot wishes to resign as a director of our company,
which would result in Mr. Arouca being our sole director. Mr. Nawrots
resignation will be effective 10 days after the filing of an Information
Statement with the Securities and Exchange Commission and its mailing or
delivery to all of our shareholders in compliance with Section 14(f) of the
Exchange Act and Rule 14f-1 or Regulation 14E thereunder.
FORM 10 INFORMATION
RISK FACTORS
An investment in our common stock involves a high degree of
risk. You should carefully consider the risks described below and the other
information in this prospectus before investing in our common stock. If any of
the following risks occur, our business, operating results and financial
condition could be seriously harmed. We do not currently have a trading price
for our common stock. If and when our common stock become eligible for trading
on the Over-the-Counter Bulletin Board, the trading price could decline due to
any of these risks, and you may lose all or part of your investment.
Risk Factors related to our Business and Industry
Because our auditors have issued a going concern opinion,
there is substantial uncertainty that we will continue operations in which case
you could lose your investment.
Our auditors have issued a going concern opinion. This means
that there is substantial doubt that we can continue as an ongoing business for
the next twelve months. The financial statements do not include any adjustments
that might result from the uncertainty about our ability to continue in
business. As such we may have to cease operations and you could lose your
investment.
If we do not obtain additional financing, our business will
fail.
While on August 31, 2011, we had cash on hand of $220, prepaid
expenses of $5000 and accounts receivable of $6,100, we have accumulated a
deficit of $12,554 in business development and administrative expenses. Our
current cash reserves are not sufficient to meet our obligations for the next
twelve-month period. We anticipate that the minimum additional capital necessary
to fund our planned operations for the 12-month period will be approximately
$12,000 and will be needed for general administrative expenses, business
development, marketing costs, support materials and costs associated with being
a publicly reporting company. We have generated some revenue from operations to
date. In order to expand our business operations, we anticipate that we will
have to raise additional funding. If we are not able to raise the capital
necessary to fund our business expansion objectives, we may have to delay the
implementation of our business plan.
We do not currently have any arrangements for financing.
Obtaining additional funding will be subject to a number of factors, including
general market conditions, investor acceptance of our business plan and initial
results from our business operations. These factors may impact the timing,
amount, terms or conditions of additional financing available to us.
We are not raising any money in this offering. The most likely
source of future funds available to us is through the sale of additional shares
of common stock or advances from our sole director.
There is no assurance that any additional financing will be
available or if available, on terms that will be acceptable to us. Failure to
raise additional financing will cause us to go out of business. If this happens,
you could lose all or part of your investment.
3
We have a very limited history of operations and there is no
assurance our future operations will result in revenues or profitability. If we
cannot generate sufficient revenues to operate profitably, we may suspend or
cease operations.
We were incorporated on June 2, 2010, and our net loss from
inception to August 31, 2011 is $12,554. We have a very limited history of
operations upon which an evaluation of our future success or failure can be
made.
To date, our business development activities have consisted
solely of providing services pursuant to a consulting agreement with
Ogrodnictwo Piotr Walkowiak, a private Polish company. Potential investors
should be aware of the difficulties normally encountered by development stage
companies and the high rate of failure of such enterprises.
In addition, there is no guarantee that we will be able to
expand our business operations. Even if we expand our operations, at present, we
do not know precisely when this will occur.
We cannot guarantee that we will be successful in generating
revenues and profit in the future. Failure to generate revenues and profit will
cause us to suspend or cease operations. If this happens, you could lose all or
part of your investment.
We face strong competition from larger and well established
companies, which could harm our business and ability to operate
profitably.
Our industry is competitive. There are many businesses
specializing in consulting of commercial cultivation of white mushrooms in
Poland and Europe and our services are not unique to their services. Even though
the industry is highly fragmented, it has a number of large and well established
companies, which are profitable and have developed a brand name. Aggressive
marketing tactics implemented by our competitors could impact our limited
financial resources and adversely affect our ability to compete in our
market.
We currently have identified only one potential customer. If
we do not attract new customers, we will not make a profit, which ultimately
will result in a cessation of operations.
We currently have identified only one customer to use our
service , a Poland based commercial mushroom cultivation company Ogrodnictwo
Piotr Walkowiak. We have not identified any other customers and we cannot
guarantee we ever will have any other customers. Even if we obtain new
customers, there is no guarantee that we will generate a profit. If we cannot
generate a profit, we will have to suspend or cease operations.
The consulting industry of commercial white mushroom growers
might be affected by general economic decline and this could adversely affect
our operating results and could lead to lower revenues than expected.
The consulting industry of commercial white mushrooms (agaricus
bisporus) growers might be affected by general economic decline. We expect that
this could adversely affect our operating results and could lead to lower
revenues than expected if economic situation does not change for better.
If we are unable to build and maintain our brand image and
corporate reputation, our business may suffer.
We are a new company, having been formed and commenced
operations only in 2010. Our success depends on our ability to build and
maintain the brand image for our services. We cannot assure you, however, that
any additional expenditure on advertising and marketing will have the desired
impact on our services brand image and on customer preferences. Our
relationships with all of our customers will be new and may be terminated at any
time. We need to maintain and expand our relationships with potential users of
our services and effectively manage these relationships. If we fail to
successfully manage our relationships with our customers, to build and maintain
our brand image and corporate reputation our business may suffer.
4
Price competition could negatively affect our gross
margins.
Price competition could negatively affect our operating
results. To respond to competitive pricing pressures, we will have to offer our
services at lower prices in order to retain or gain market share and customers.
If our competitors offer discounts on certain services in the future, we will
need to lower prices to match the competition, which could adversely affect our
gross margins and operating results.
Because our directors and our sole officer has other
business interests, he may not be able or willing to devote a sufficient amount
of time to our business operations, causing our business to fail.
Our current director, Ireneusz Nawrot has resigned as an
officer and will be stepping down from the board, our current director and
officer Odelio Arouca will be devoting limited time to our operations. Mr.
Arouca intends to devote approximately 30% (15 hours a week) of his business
time to our affairs. Because our sole officer and directors will be devoting
limited time to our operations, our operations may be sporadic and occur at
times which are convenient to him. As a result, our operations may be
periodically interrupted or suspended which could result in a lack of revenues
and a possible cessation of operations. It is possible that the demands on Mr.
Arouca from his other obligations could increase with the result that he would
no longer be able to devote sufficient time to the management of our business.
In addition, Mr. Arouca may not possess sufficient time for our business if the
demands of managing our business increase substantially beyond current levels.
And finally, we have not adopted a policy that expressly prohibits our sole
officer and director Mr. Arouca from having a direct or indirect financial
interest in potential future opportunity or from engaging in business activities
of the types conducted by us. As a result, in the future our sole officer and
director Mr. Arouca may favor his own interests over our interests and those of
our shareholders, which could have a material adverse effect on our business and
results of operations.
Because one of our directors and sole officer owns 66.52% of
our issued and outstanding common stock, he could make and control corporate
decisions that may be disadvantageous to minority shareholders.
One of our directors and sole officer, Mr. Arouca, owns
approximately 66.52% of issued and outstanding shares of our common stock.
Accordingly, he will be able to determine the outcome of all corporate
transactions or other matters that require shareholder approval, including but
not limited to, the election of directors, mergers, consolidations, and the sale
of all or substantially all of our assets. He will also have the power to
prevent or cause a change in control. The interests of our sole officer and
director may differ from the interests of the other stockholders and thus result
in corporate decisions that are disadvantageous to other shareholders.
Because our directors and sole officer are not a resident of
the United States it may be difficult to enforce any liabilities against
them.
Accordingly, if an event occurs that gives rise to any
liability, shareholders would likely have difficulty in enforcing such
liabilities because our directors and our sole officer reside outside the United
States. If a shareholder desired to sue, the shareholder would have to serve a
summons and complaint. Even if personal service is accomplished and a judgment
is entered against a person, the shareholder would then have to locate assets of
that person, and register the judgment in the foreign jurisdiction where assets
are located.
Because the companys headquarters are located outside the
united states, U.S. investors may experience difficulties in attempting to
affect service of process and to enforce judgment based upon U.S. federal
securities laws against the company and its non U.S. resident officer and
director.
While we are organized under the laws of State of Nevada, our
sole officer and directors are non-U.S. residents and our headquarters are
located outside the United States. Consequently, it may be difficult for
investors to affect service of process in the United States and to enforce in
the United States judgments obtained in United States courts based on the civil
liability provisions of the United States securities laws. Since all our assets
will be located in Poland or Brazil it may be difficult or impossible for U.S.
investors to collect a judgment against us. As well, any judgment obtained in
the United States against us may not be enforceable in the United States.
5
Risks Relating to our Common Stock
We do not expect to pay dividends in the foreseeable
future.
We have never paid any dividends on our common stock. We do not
expect to pay cash dividends on our common stock at any time in the foreseeable
future. The future payment of dividends directly depends upon our future
earnings, capital requirements, financial requirements and other factors that
our board of directors will consider. Since we do not anticipate paying cash
dividends on our common stock, a return on your investment, if any, will depend
solely on an increase, if any, in the market value of our common stock.
Any additional funding we arrange through the sale of our
common stock will result in dilution to existing shareholders.
We must raise additional capital in order for our business plan
to succeed. We are not raising any money in this offering. Our most likely
source of additional capital will be through the sale of additional shares of
common stock. Such stock issuances will cause stockholders' interests in our
company to be diluted. Such dilution will negatively affect the value of
investors shares.
There is a limited trading market for our securities, and
shareholders may be unable to sell their shares.
There is currently a limited market for our common stock on the
Over-The-Counter Bulletin Board. It may be difficult for shareholders to sell
their stock. In such a case, shareholders may find that they are unable to
achieve benefits from their investment.
Our shares of common stock are subject to the penny stock
rules of the securities and exchange commission and the trading market in our
securities will be limited, which will make transactions in our stock cumbersome
and may reduce the value of an investment in our stock.
The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in "penny stocks. Penny stocks generally are
equity securities with a price of less than $5.00 (other than securities
registered on certain national securities exchanges or quoted on the NASDAQ
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or system). Penny
stock rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from those rules, to deliver a standardized risk disclosure
document prepared by the SEC, which specifies information about penny stocks and
the nature and significance of risks of the penny stock market. A broker-dealer
must also provide the customer with bid and offer quotations for the penny
stock, the compensation of the broker-dealer, and sales person in the
transaction, and monthly account statements indicating the market value of each
penny stock held in the customer's account. In addition, the penny stock rules
require that, prior to a transaction in a penny stock not otherwise exempt from
those rules, the broker-dealer must make a special written determination that
the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the trading activity in the secondary market for
stock that becomes subject to those penny stock rules. If a trading market for
our common stock develops, our common stock will probably become subject to the
penny stock rules, and shareholders may have difficulty in selling their
shares.
The trading price of our stock may fluctuate significantly
and stockholders may have difficulty reselling their shares.
There is a volatility associated with Bulletin Board securities
in general and the value of your investment could decline due to the impact of
any of the following factors upon the market price of our common stock: (i)
disappointing results from our development efforts; (ii) failure to meet our
revenue or profit goals or operating budget; (iii) decline in demand for our
common stock; (iv) downward revisions in securities analysts' estimates or
changes in general market conditions; (v) technological innovations by
competitors or in competing technologies; (vi) lack of funding generated for
operations; (vii) investor perception of our industry or our prospects; and
(viii) general economic trends.
6
In addition, stock markets have experienced price and volume
fluctuations and the market prices of securities have been highly volatile.
These fluctuations are often unrelated to operating performance and may
adversely affect the market price of our common stock. As a result, investors
may be unable to sell their shares at a fair price and you may lose all or part
of your investment.
We have limited experience as a public company.
We have limited experience in complying with the various rules
and regulations, which are required of a public company. As a result, we may not
be able to operate successfully as a public company, even if our operations are
successful. We plan to comply with all of the various rules and regulations,
which are required of a public company. However, if we cannot operate
successfully as a public company, your investment may be adversely affected. Our
inability to operate as a public company could be the basis of your losing your
entire investment in us.
Because we can issue additional shares of common stock,
purchasers of our common stock may incur immediate dilution and may experience
further dilution.
We are authorized to issue up to 75,000,000 shares of common
stock, of which 4,510,000 shares are issued and outstanding. Our board of
directors has the authority to cause us to issue additional shares of common
stock, and to determine the rights, preferences and privileges of such shares,
without consent of any of our stockholders. Consequently, the stockholders may
experience more dilution in their ownership of our stock in the future.
A decline in the price of our common stock could affect our
ability to raise further working capital, it may adversely impact our ability to
continue operations and we may go out of business.
A prolonged decline in the price of our common stock could
result in a reduction in the liquidity of our common stock and a reduction in
our ability to raise capital. Because we may attempt to acquire a significant
portion of the funds we need in order to conduct our planned operations through
the sale of equity securities, a decline in the price of our common stock could
be detrimental to our liquidity and our operations because the decline may cause
investors to not choose to invest in our stock. If we are unable to raise the
funds we require for all our planned operations, we may be forced to reallocate
funds from other planned uses and may suffer a significant negative effect on
our business plan and operations, including our ability to develop new products
and continue our current operations. As a result, our business may suffer, and
not be successful and we may go out of business. We also might not be able to
meet our financial obligations if we cannot raise enough funds through the sale
of our common stock and we may be forced to go out of business.
FINRA sales practice requirements may also limit a
stockholders ability to buy and sell our stock.
In addition to the penny stock rules promulgated by the
Securities and Exchange Commission, the Financial Industry Regulatory Authority
(FINRA) has adopted rules that require that in recommending an investment to a
customer, a broker-dealer must have reasonable grounds for believing that the
investment is suitable for that customer. Prior to recommending speculative low
priced securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customers financial status,
tax status, investment objectives and other information. Under interpretations
of these rules, the FINRA believes that there is a high probability that
speculative low priced securities will not be suitable for at least some
customers. FINRA requirements make it more difficult for broker-dealers to
recommend that their customers buy our common stock, which may limit your
ability to buy and sell our stock.
DESCRIPTION OF BUSINESS
Overview
Indigo International, Corp., was founded in the State of Nevada
on June 2, 2010. We are a Poland based corporation and operate a consulting
business in commercial cultivation of white mushrooms (agaricus bisporus), which
include but is not limited to consulting in process engineering, improvement of
production methods, fruiting techniques, spore measurements, mushroom quality,
packaging, changes in growing on different strains or developing more adequate harvesting methods, quality of raw materials, recipe,
homogeneity, logistics, the process of composting and hygiene and instructing
and training of staff in Poland. We had planned to expand our services to North
American market in the future if we had the available resources and growth to
warrant it. We are a development stage company and cannot state with certainty
whether we will achieve profitability. We have limited revenues, have minimal
assets and have incurred losses since inception. To date, our business
operations have been limited to primarily, the provision of services pursuant to
a consulting agreement with Ogrodnictwo Piotr Walkowiak a private Polish
company, specializing in commercial white mushroom cultivation.
7
We must raise additional capital in order for our business plan
to succeed. We have not arranged any fundraising yet. The most likely source of
future funds available to us is through the sale of additional shares of common
stock or advances from our sole director. There is no assurance that any
additional financing will be available or if available, on terms that will be
acceptable to us. Failure to raise additional financing will cause us to go out
of business. If this happens, you could lose all or part of your investment.
There have been no material reclassifications, mergers,
consolidations or purchases or sales of any significant amount of assets not in
the ordinary course of business since the date of incorporation. We are a
start-up, development stage company and have generated minimal revenues. We
cannot guarantee that we will be successful in our business operations. Our
business is subject to risks inherent in the establishment of a new business
enterprise, including limited capital resources and possible cost overruns, such
as increases in inventory, shipping, and marketing costs, increases in
administration expenditures associated with daily operations, increases in
accounting and audit fees, increases in legal fees related to filings and
regulatory compliance and increases in travel expenditures. Our new director,
Mr. Arouca, is considering other potential businesses for our company.
Our Current Business
We were incorporated in the State of Nevada on June 2, 2010. To
date, our business operations have been limited to primarily, the development of
a business plan and the signing of the service agreement with Ogrodnictwo Piotr
Walkowiak, a private Polish company, specializing in white mushroom growing.
There is no any relationship between the company Ogrodnictwo Piotr Walkowiak
we signed the service agreement with and our officer, director or affiliates. As
of August 31, 2011, we have provided $22,000 in value of consulting services
pursuant to the agreement. We had planned to operate a consulting business in
commercial cultivation of white mushrooms (agaricus bisporus), including but not
limited to consulting in process engineering, improvement of production methods,
fruiting techniques, spore measurements, mushroom quality, packaging, changes in
growing on different strains or developing more adequate harvesting methods,
quality of raw materials, recipe, homogeneity, logistics, the process of
composting and hygiene and instructing and training of staff in Poland. We had
planned to expand our services to European and North American market in the
future if we had the available resources and growth to warrant it. We are a
development stage company and there is no guarantee that we will be able to
expand our business. Our new director, Odelio Arouca, is considering other
potential businesses for our company.
Commercial production of white mushrooms (agaricus bisporus) is
both an art and a science with many complex and distinct stages. Mushrooms are
one of the most difficult commodities to grow. Intensive labor is required to
produce a consistent, high-quality crop. While white mushrooms have been grown
in unused coal and limestone mines, old breweries, basements of apartment
houses, natural and man-made caves, rhubarb sheds, and many other unusual
structures, successful commercial mushroom growing requires special farms that
are highly technical operations, complete with extensive computerized systems to
monitor each point in production.
The overall white mushroom production cycle consists of Phase I
and Phase II composting, spawning, spawn colonization (Phase III), casing, case
run, pinning and finally harvesting. The specific criteria (temperature set
points, carbon dioxide concentrations and so forth) involved in each stage will
change depending on different mushroom crops and different mushroom growers, but
the basic concepts and methods of mushroom production remain constant.
Because of the fact that the margin between cost price and
retail price is not very significant it is very important for a grower to get
the maximum yield with the highest quality. We can offer advice to commercial
growers on how to achieve these goals by helping them to improve their
production methods, strains, fruiting techniques, mushroom quality and
packaging. We can also help with changing growing schedules, changes in growing
on different strains or developing more adequate harvesting methods. The frequency
of the visits can vary from several times per week to once a month, depending on
the problems of the farm.
8
Consulting Services
Our consulting services for commercial growers of white
mushrooms (agaricus bisporus) include:
-
Consulting in process engineering
-
Quality control
-
Optimizing compost quality
-
Hygiene check
-
Spore measurement
-
Improvement of production methods
-
Improvement of fruiting techniques
-
Improvement of mushroom quality
-
Instructing and training of staff
Our specific areas of services include the following:
1. For clients existing cultivation facilities:
-
Review of the current cultivation process used by client.
-
Prepare a written recommendation for improvement of production methods that
are appropriate for existing facility. Special consideration will be given to
selecting fruiting techniques, spore measurements, mushroom quality,
evaluating changes in growing different strains and sanitation. Upon clients
approval to provide necessarily instructing and training of staff.
-
Upon revision of contracts with current raw material suppliers and compost
suppliers prepare a written recommendation regarding cost effective
possibilities of contracting new suppliers and specific terms and conditions
that should be included in new contracts and agreements.
-
Review of the harvesting method, packaging and storing of the product.
-
Prepare a written recommendation for improvement of harvesting, packaging
and storing of the product.
-
After revising current contracts with product distributors prepare a
written recommendation regarding marketing strategies, new distributors
networks and logistic solutions.
2. For clients future cultivation facilities:
-
Review clients project program, plans, drawings and other materials.
-
Prepare a written recommendation for a modern growing system. Special
consideration will be given to possibilities of shortening production cycle,
optimizing shelving systems, and humidification and temperature control
systems, modern sanitation techniques.
3. On-Call service:
Give verbal or written recommendations or instructions via
phone, mail or email regarding any clients questions that are not mentioned
above, but are related to mushroom cultivation process (as an example
instructions in case of pathogen infection or pest infestation).
Clients
Our former president and current director, Ireneusz Antony
Nawrot marketed our product and negotiated with potential customers. We had
intended to develop and maintain a database of potential customers who may want
to use our services. We expected to follow up with these clients
periodically and offer them free presentations and special discounts from time
to time. Our methods of communication would include: phone calls, email and
regular mail. We planned to attend trade shows in our industry to showcase our
services with a view to find new customers. We are now considering whether to
remain in this business long term or consider other options.
9
Agreement
On September 27, 2010 a Service Agreement was signed with
Ogrodnictwo Piotr Walkowiak, a Poland based company.
The agreement with Ogrodnictwo Piotr Walkowiak contains the
following material terms:
2. Term of Agreement/Termination: The term of this Agreement
shall be for 12 months beginning from the Effective Date, unless terminated
earlier as provided herein. CLIENT may terminate this Agreement for any reason
upon 20 days advance written notice to Consultant. Consultant may terminate this
Agreement in the event that CLIENT commits a breach of its material obligations
hereunder, upon 20 days advance written notice and where CLIENT does not cure
the breach.
3. Payment: The CLIENT will pay to Indigo International, Corp.
$75.00 per hour for services rendered to the CLIENT under the Agreement. CLIENT
should be invoiced for consulting fees in an amount not to exceed $2,000 per
month. Invoicing should be on a monthly basis, beginning after Indigo
International, Corp. has completed his first four weeks of service. Under no
circumstances shall Indigo International, Corp. perform work having a value
(based on the agreed upon per hour rate) in excess of the maximum permitted fee.
Payment by CLIENT is due within 30 days from receipt of an approved invoice. The
CLIENT agrees to reimburse Indigo International, Corp. for all actual reasonable
and necessary expenditures, which are directly related to the consulting
services. These expenditures include, but are not limited to, expenses related
to travel (i.e. airfare, hotel, temporary housing, meals, parking, mileage,
etc.), telephone calls and postal expenditure. Expenses incurred by Indigo
International, Corp. will be reimbursed by the CLIENT within 15 days of our
proper written request for reimbursement.
4. Invoices/Reporting: All invoices submitted to CLIENT by
Consultant for payment must include a written, task based report detailing the
services actually and reasonably provided by Consultant to CLIENT along with the
time spent by Consultant performing the same. Consultant shall certify in
writing that each such invoice is complete and accurate. Payment is contingent
on provision of such invoices. Consultant shall provide technical reports in
accordance with the Scope of Work.
Initially, our director and former officer Mr. Ireneusz Antoni
Nawrot worked with the current consulting agreement.
Since Mr. Arouca has his own business ventures in Brazil, he
will be devoting limited time to our operations. Mr. Arouca intends to devote
approximately 30% (15 hours a week) of his business time to our affairs. As a
result of this, our operations may be sporadic and occur at times which are
convenient to Mr. Arouca. As a result, our operations may be periodically
interrupted or suspended which could result in a lack of revenues and a possible
cessation of operations. It is also possible that the demands on Mr. Arouca from
his own business could increase with the result that he would no longer be able
to devote sufficient time to the management of our business. In addition, Mr.
Arouca may not possess sufficient time for our business if the demands of
managing our business increase substantially beyond current levels. We have not
adopted a policy that expressly prohibits directors or officers from having a
direct or indirect financial interest in potential future opportunity or from
engaging in business activities of the types conducted by us. As a result, in
the future our sole officer and directors may favor his own interests over our
interests and those of our shareholders, which could have a material adverse
effect on our business and results of operations. In addition, Mr. Arouca is not
experienced in the mushroom business and has indicated his intent to consider
other business opportunities for our company.
We cannot guarantee that we will be able to find successful
contracts with Polish companies, in which case our business may fail and we will
have to cease our operations.
10
Description of property
We do not have an ownership or leasehold interest in any
property.
Insurance
We do not maintain any insurance and do not intend to maintain
insurance in the future. Because we do not have any insurance, if we are made a
party of a products liability action, we may not have sufficient funds to defend
the litigation. If that occurs a judgment could be rendered against us that
could cause us to cease operations.
Employees. Identification of Certain Significant
Employees
We are a development stage company and currently have no
employees, other than our sole officer and directors, we intend to hire
additional employees on an as needed basis.
Research and Development Expenditures
We have not incurred any other research or development
expenditures since our incorporation.
Government Regulation
We will be required to comply with all regulations, rules and
directives of governmental authorities and agencies applicable to the consulting
services for commercial mushroom growers in any jurisdiction which we would
conduct activities. We do not believe that government regulation will have a
material impact on the way we conduct our business.
Subsidiaries
We do not have any subsidiaries.
Patents and Trademarks
We do not own, either legally or beneficially, any patents or
trademarks.
Offices
Our office is currently located in Brazil at the address on the
front page of this current report on Form 8-K. This is the office of our
director, Mr. Arouca. We do not pay any rent as yet to Mr. Arouca and there is
no agreement to pay any rent in the future. Such costs are immaterial to the
financial statements and, accordingly have not been reflected therein. Upon the
completion of our offering, we do not intend to establish an office
elsewhere.
REPORTS TO SECURITY HOLDERS
We are required to file annual, quarterly and current reports,
proxy statements and other information with the Securities and Exchange
Commission and our filings are available to the public over the internet at the
Securities and Exchange Commissions website at http://www.sec.gov. The public
may read and copy any materials filed by us with the Securities and Exchange
Commission at the Securities and Exchange Commissions Public Reference Room at
100 F Street N.E. Washington D.C. 20549. The public may obtain information on
the operation of the Public Reference Room by calling the Securities and
Exchange Commission at 1-800-732-0330. The SEC also maintains an Internet site
that contains reports, proxy and formation statements, and other information
regarding issuers that file electronically with the SEC, at
http://www.sec.gov.
11
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND
RESULTS OF OPERATIONS
General
Indigo International, Corp. was incorporated under the laws of
the State of Nevada on June 2, 2010. Our registration statement has been filed
with the Securities and Exchange Commission on December 27, 2010 and has been
declared effective on March 18, 2011.
Current Business Operations
Indigo International, Corp. is a Poland based corporation that
operates a consulting business in commercial cultivation of white mushrooms
(agaricus bisporus), including but not limited to consulting in process
engineering, improvement of production methods, fruiting techniques, spore
measurements, mushroom quality, packaging, changes in growing on different
strains or developing more adequate harvesting methods, quality of raw
materials, recipe, homogeneity, logistics, the process of composting and hygiene
and instructing and training of staff in Poland.
We are a development stage company and we have just recently
started our operations. On September 27, 2010 Indigo International, Corp. signed
the consulting agreement with Ogrodnictwo Piotr Walkowiak a private Polish
company, specializing in commercial white mushroom cultivation. The agreement is
for twelve months beginning from the effective date, September 27, 2010. As part
of the agreement, the Company agreed to pay consultant fees for $75 per hour for
services not exceed $2,000 per month.
Results Of Operation
We are a development stage company with limited operations
since our inception on June 2, 2010 to August 31, 2011. As of August 31, 2011,
we had total assets of $11,320 and total liabilities of $274. Since our
inception to August 31, 2011, we have accumulated a deficit of $12,554. We
anticipate that we will continue to incur losses in the next 12 months. Our
financial statements have been prepared assuming that we will continue as a
going concern. We expect we will require additional capital to meet our long
term operating requirements. We expect to raise additional capital through,
among other things, the sale of equity or debt securities.
Nine Month Period Ended August 31, 2011 Compared to the
period from Inception (June 2, 2010) to August 31, 2011
Our net loss for the nine month period ended August 31, 2011
was $11,934 compared to a net loss of $12,554 during the period from inception
(June 2, 2010) to August 31, 2011. During the nine month period ended August 31,
2011, we generated revenue of $22,000.
During the nine month period ended August 31, 2011, we incurred
general and administrative expenses of $33,934 compared to $34,554 incurred
during the period from inception (June 2, 2010) to August 31, 2011. General and
administrative and professional fee expenses incurred during the nine month
period ended August 31, 2011 were generally related to corporate overhead,
financial and administrative contracted services, such as legal and accounting,
developmental costs, and marketing expenses.
The weighted average number of shares outstanding was 4,510,000
for the nine month period ended August 31, 2011.
Liquidity and Capital Resources
As of August 31, 2011
As at August 31, 2011, our current assets were $11,320 compared
to $23,254 in current assets at November 30, 2010. As at August 31, 2011, our
current liabilities were $274. Current liabilities were comprised entirely of
$274 in advance from director.
12
Stockholders equity decreased from $22,980 as of November 30,
2010 to $11,046 as of August 31, 2011.
Cash Flows from Operating Activities
For the nine month period ended August 31, 2011, net cash flows
used in operating activities was $23,034 consisting of a net loss of $11,934, an
increase in prepaid expenses of $5,000 and increase in accounts receivable of
$6,100. Net cash flows used in operating activities was $23,654 for the period
from inception (June 2, 2010) to August 31, 2011.
Cash Flows from Investing Activities
For the nine month period ended August 31, 2011, we did not
generate any cash flows from investing activities.
Cash Flows from Financing Activities
We have financed our operations primarily from either
advancements or the issuance of equity and debt instruments. For the nine month
period ended August 31, 2011, we did not generate net cash flows from financing
activities. For the period from inception (June 2, 2010) to August, 2011, net
cash provided by financing activities was $23,874 received from proceeds from
issuance of common stock and advance from director.
Plan of Operation and Funding
We expect that working capital requirements will continue to be
funded through a combination of our existing funds and further issuances of
securities. Our working capital requirements are expected to increase in line
with the growth of our business.
Existing working capital, further advances and debt
instruments, and anticipated cash flow are expected to be adequate to fund our
operations over the next twelve months. We have no lines of credit or other bank
financing arrangements. Generally, we have financed operations to date through
the proceeds of the private placement of equity and debt instruments. In
connection with our business plan, management anticipates additional increases
in operating expenses and capital expenditures relating to: (i) acquisition of
inventory; (ii) developmental expenses associated with a start-up business; and
(iii) marketing expenses. We intend to finance these expenses with further
issuances of securities, and debt issuances. Thereafter, we expect we will need
to raise additional capital and generate revenues to meet long-term operating
requirements. Additional issuances of equity or convertible debt securities will
result in dilution to our current shareholders. Further, such securities might
have rights, preferences or privileges senior to our common stock. Additional
financing may not be available upon acceptable terms, or at all. If adequate
funds are not available or are not available on acceptable terms, we may not be
able to take advantage of prospective new business endeavors or opportunities,
which could significantly and materially restrict our business operations.
Off-Balance Sheet Arrangements
As of the date of this report, we do not have any off-balance
sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources that are material to investors.
Going Concern
The independent auditors' report accompanying our November 30,
2010 financial statements contained an explanatory paragraph expressing
substantial doubt about our ability to continue as a going concern. The
financial statements have been prepared "assuming that we will continue as a
going concern," which contemplates that we will realize our assets and satisfy
our liabilities and commitments in the ordinary course of business.
13
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
The following table sets forth as of October 25, 2011, certain
information regarding the beneficial ownership of our companys common stock.
The table sets forth the beneficial ownership of (i) each person who, to our
knowledge, beneficially owns more than 5% of the outstanding shares of our
common Stock; (ii) each of our current directors and officers; and (iii) all of
our current officers and directors as a group. The number of shares owned
includes all shares beneficially owned by such persons, as calculated in
accordance with Rule 13d-3 promulgated under the Exchange Act. Under such rules,
beneficial ownership includes any shares of common stock as to which a person
has sole or shared voting power or investment power and any shares of common
stock which the person has the right to acquire within 60 days of October 25,
2011 through the exercise of any option, warrant or right, through conversion of
any security or pursuant to the automatic termination of a power of attorney or
revocation of a trust, discretionary account or similar arrangement.
Title of Class
|
Name and address of
beneficial owner
|
Amount of beneficial
ownership
1
|
Percent of
class
|
Common Stock
|
Odelio R. Arouca
Regus
Continental Square, Rua Olimpíadas
205 - 4th Floor, Vila Olímpia
São Paulo, Brazil 04551-000
|
3,000,000 Direct
|
66.52%
|
|
Officer and Director as a
group
|
3,000,000
|
66.52%
|
1
Beneficial ownership percentage is based on
4,510,000 shares of common stock as of October 25, 2011.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The following individuals serve as our current directors and
executive officers of our company as of the date of this current report. All
directors of our company hold office until the next annual meeting of our
shareholders or until their successors have been elected and qualified. The
executive officers of our company are appointed by our board of directors and
hold office until their death, resignation or removal from office.
Name
|
Position Held with our
Company
|
Age
|
Date First Elected or
Appointed
|
Ireneusz Antoni Nawrot
1
|
Director (former President,
Secretary and
Treasurer)
|
49
|
June 2, 2010
|
Odelio Arouca
|
CEO, CFO, Secretary, Treasurer
and Director
|
33
|
October 25, 2011
|
1
Mr. Nawrot resigned as an officer effective
October 25, 2011 and will resign as a director of our company on the 11th day
after the mailing of an information statement on Schedule 14F-1.
Business Experience
The following is a brief account of the education and business
experience during at least the past five years of each director, executive
officer and key employee of our company, indicating the persons principal
occupation during that period, and the name and principal business of the
organization in which such occupation and employment were carried out.
Ireneusz Antoni Nawrot
Mr. Nawrot obtained a Bachelors degree in Agriculture from the
Agricultural University of Poznan (August Cieszkowski Agricultural University of
Poznan), located in Poland, in June 1981. After graduation Mr. Ireneusz Antoni
Nawrot has been working for various agricultural companies in Poland and Europe,
whose businesses were involved in the production, processing, marketing and use
of foods, fibers and byproducts from plant crops. In 1988 Mr. Nawrot opened his
own agricultural company Gospodarstwo Ogrodniczo Pieczarskie, specializing in
commercial production of white mushrooms (Agaricus bisporus). Since 1988
Gospodarstwo Ogrodniczo Pieczarskie is the only company Mr. Nawrot has worked
for. Mr. Nawrots company Gospodarstwo Orgodniczo Pieczarskie is involved in
the commercial production of mushrooms only; it is not a consulting company to
the mushroom industry. Even though Mr. Nawrot has not provided
consulting services to mushroom growers, his has over 22 years of experience in
mushroom growing industry. His experience, qualifications and attributes have
led to our conclusion that Mr. Ireneusz Antoni Nawrot should be serving as a
member of our Board of Directors in light of our business and structure. Mr.
Nawrot has not been a member of the board of directors of any corporations
during the last five years
14
Odelio Arouca
Mr. Arouca has over eight years of experience in private
equity. Mr. Arouca worked for Pátria Investimentos, a Brazilian private equity
firm partially owned by the Blackstone Group, where he had an extensive
involvement in monitoring and managing of portfolio companies. Most recently, he
worked as Director of New Business and Secretary of the board of directors at
DASA [DASA3.SA], a successful private equity case and currently the largest
medical diagnostic company in Latin America, with market capitalization of over
U$3.0 billion.
Mr. Arouca has experience with mergers of businesses acquired
by DASA over time. He acted in the companys IPO and led its follow-on equity
offering of approximately US$300 million. Mr. Arouca structured DASAs Investor
Relations area, representing the company worldwide. He was also responsible for
structuring the issuing of US$100 million in securities used to finance further
acquisitions. Mr. Arouca holds an MBA from The University of Chicago Booth
School of Business and a Bachelors Degree in Business Administration from
Fundação Getulio Vargas São Paulo - Brazil.
Family Relationships
There are no family relationships between any of our directors,
executive officers or directors.
Involvement in Certain Legal Proceedings
During the past five years, none of our officers, directors,
promoters or control persons have had any of the following events occur:
-
a bankruptcy petition filed by or against any business of which such
person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time;
-
conviction in a criminal proceeding or being subject to a pending criminal
proceeding, excluding traffic violations and other minor offenses;
-
being subject to any order, judgement or decree, not substantially
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently enjoining, barring, suspending or otherwise limiting his
involvement in any type of business, securities or banking business; and/or
-
being found by a court of competent jurisdiction, in a civil action, the
SEC or the Commodity Futures Trading Commission to have violated a federal or
state securities or commodities law, and the judgement has not been reversed,
suspended or vacated.
EXECUTIVE COMPENSATION
General
The table below summarizes all compensation awarded to, earned
by, or paid to our executive officers by any person for all services rendered in
all capacities to us for the fiscal period from our incorporation on June 2,
2010 to November 30, 2010 (our fiscal year end) and subsequent thereto to the
date of this current report on Form 8-K.
15
SUMMARY COMPENSATION
TABLE
|
Name and
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
($)
|
All
Other
Compen-
sation
($)
|
Total
($)
|
Ireneusz Antoni
Nawrot
former President,
Treasurer, and
Secretary
Director
1
|
2011
2010
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Odelio Arouca
CEO, CFO,
Secretary,
Treasurer and
Director
2
|
2011
2010
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
Nil
|
1
Mr. Nawrot resigned as an officer effective
October 25, 2011 and will resign as a director of our company on the 11th day
after the mailing of an information statement on Schedule 14F-1.
2
Mr. Arouca joined the company as a director and officer on October 25,
2011.
Compensation Discussion and Analysis
There are no arrangements or plans in which we provide pension,
retirement or similar benefits for our director or executive officers. Our
directors and executive officers may receive stock options at the discretion of
our board of directors in the future. We do not have any material bonus or
profit sharing plans pursuant to which cash or non-cash compensation is or may
be paid to our director or executive officers, except that stock options may be
granted at the discretion of our board of directors from time to time. We have
no plans or arrangements in respect of remuneration received or that may be
received by our executive officers to compensate such officers in the event of
termination of employment (as a result of resignation, retirement, change of
control) or a change of responsibilities following a change of control.
There are no current employment agreements between our company
and our executive officers or directors.
Mr. Ireneusz Antoni Nawrot devoted approximately 15 hours per
week to manage the affairs of our company. He agreed to work with no
remuneration until such time as our company receives sufficient revenues
necessary to provide management salaries. At this time, we cannot accurately
estimate when sufficient revenues will occur to implement this compensation, or
what the amount of the compensation will be. It is unlikely that Mr. Nawrot will
continue to work for our company unless satisfactory payment arrangements are
made, but none have yet been made.
There are no annuity, pension or retirement benefits proposed
to be paid to the officers or director or employees in the event of retirement
at normal retirement date pursuant to any presently existing plan provided or
contributed to by the company or any of its subsidiaries, if any.
Grants of Plan Based Awards and Outstanding Equity Awards at
Fiscal Year-End
We have not adopted any equity compensation plan and no stock,
options, or other equity securities were awarded to our executive officers since
inception.
16
Long-Term Incentive Plan
Currently, our company does not have a long-term incentive plan
in favour of any director, officer, consultant or employee of our company.
Compensation of Directors
Please refer to the Summary Compensation Table beginning on
page 15 for information on compensation of our directors.
We have no formal plan for compensating our directors for
service in their capacity as directors, although our directors may in the future
receive stock options to purchase common shares as awarded by our board of
directors or (as to future stock options) a compensation committee in the event
that one is established. Directors are entitled to reimbursement for reasonable
travel and other out-of-pocket expenses incurred in connection with attendance
at meetings of our board of directors. Our board of directors may award special
remuneration to any director undertaking any special services on our behalf
other than services ordinarily required of a director.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE
Except as set out below, since the beginning of our last fiscal
year we have not been a party to any transaction, proposed transaction, or
series of transactions in which the amount involved exceeds the lesser of
$120,000 or one percent of our average total assets for the last two fiscal
years, and in which, to our knowledge, any of our directors, officers, five
percent beneficial security holders or any member of the immediate family of the
foregoing persons has had or will have a direct or indirect material
interest:
None of the following parties has, since our date of
incorporation, had any material interest, direct or indirect, in any transaction
with us or in any presently proposed transaction that has or will materially
affect us, except as indicated:
-
Any of our directors or officers;
-
Any person proposed as a nominee for election as a director;
-
Any person who beneficially owns, directly or indirectly, shares carrying
more than 5% of the voting rights attached to our outstanding shares of common
stock;
-
Any relative or spouse of any of the foregoing persons who has the same
house as such person;
-
Immediate family members of directors, director nominees, executive
officers and owners of 5% or more of our common stock.
On June 2, 2010 Mr. Ireneusz Antoni Nawrot advanced funds to us
in the amount of $274. There is no due date for the repayment of the funds
advanced by Mr. Nawrot. Mr. Nawrot will be repaid from revenues of operations if
and when we generate revenues to repay the obligation. There is no assurance
that we will ever generate revenues from our operations. The obligation to Mr.
Nawrot is based on an oral contract and does not bear interest. There is no
written agreement evidencing the advancement of funds by Mr. Nawrot or the
repayment of the funds to Mr. Nawrot.
On June 25, 2010 we issued a total of 3,000,000 shares of
restricted common stock to Mr. Nawrot for total cash proceeds of $3,000.
LEGAL PROCEEDINGS
We know of no material, active or pending legal proceedings
against us, nor are we involved as a plaintiff in any material proceedings or
pending litigation. There are no proceedings in which any of our directors,
officers or affiliates, or any registered beneficial shareholder are an adverse
party or has a material interest adverse to us.
17
MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANTS COMMON
EQUITY
AND RELATED STOCKHOLDER MATTERS
Market Information
Our shares of common stock are quoted on the OTC Bulletin Board
under the symbol IDGR. Our CUSIP number is 45569A 105. As of the date of this
current report, trading in our common stock has not commenced, therefore no
table of high/low bid prices is presented in this current report.
Holders of our Common Stock
Our common shares are issued in registered form. Island Stock
Transfer, of St. Petersburg, Florida is our stock transfer agent. They can be
contacted by telephone at 727-289-0010 and by facsimile at 727-289-0069.
As of October 12, 2011, the shareholders list of our shares of
common stock showed 30 registered shareholders holding 4,510,000 shares; there
are no shares held by broker-dealers. There are 4,510,000 shares outstanding.
Dividends
We have not declared any dividends since incorporation and do
not anticipate that we will do so in the foreseeable future. Although there are
no restrictions that limit the ability to pay dividends on our common shares,
our intention is to retain future earnings for use in our operations and the
expansion of our business.
Securities Authorized for Issuance under Equity Compensation
Plans
We do not have any equity compensation plans in place.
RECENT SALES OF UNREGISTERED SECURITIES
We issued 3,000,000 shares of our common stock to Mr. Nawrot
(our former President, Chief Executive Officer, Treasurer and director) on June
25, 2010. He acquired these 3,000,000 shares at a price of $0.001 per share for
total proceeds to us of $3,000. These shares were issued pursuant to Regulation
S promulgated pursuant to the Securities Act of 1933. The shares were issued
with a Rule 144 restrictive legend. On October 25, 2011, these shares were sold
to Odelio Arouca for $30,000.
On September 10, 2010 we completed an offering of 960,000
shares of our common stock to 12 offshore investors. The total amount received
from this offering was $9,600. We completed this offering pursuant to Regulation
S of the Securities Act.
DESCRIPTION OF REGISTRANTS SECURITIES
Common Stock
Our authorized capital stock consists of 75,000,000 shares of
common stock, par value $0.001 per share. Our shareholders (i) have equal
rateable rights to dividends from funds legally available therefor, when, as and
if declared by the board of directors; (ii) are entitled to share rateably in
all of the assets for distribution to holders of common stock upon liquidation,
dissolution or winding up of our business affairs; (iii) do not have
pre-emptive, subscription or conversion rights, and there are no redemption or
sinking fund provisions or rights applicable thereto; and (iv) are entitled to
one non-cumulative vote per share on all matters on which stockholders may vote.
All shares of common stock now outstanding are fully paid and non-assessable.
There are no provisions in our articles of incorporation or
bylaws that would delay, defer or prevent a change in control of our company or
a change in type of business.
18
Dividends
We have not declared any dividends since incorporation and do
not anticipate that we will do so in the foreseeable future. Although there are
no restrictions that limit the ability to pay dividends on our common shares,
our intention is to retain future earnings for use in our operations and the
expansion of our business.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Under our Articles of Incorporation and Bylaws of the
corporation, we may indemnify an officer or director who is made a party to any
proceeding, including a lawsuit, because of his/her position, if he/she acted in
good faith and in a manner he/she reasonably believed to be in our best
interest. We may advance expenses incurred in defending a proceeding. To the
extent that the officer or director is successful on the merits in a proceeding
as to which he/she is to be indemnified, we must indemnify him/her against all
expenses incurred, including attorneys fees. With respect to a derivative
action, indemnity may be made only for expenses actually and reasonably incurred
in defending the proceeding, and if the officer or director is judged liable,
only by a court order. The indemnification is intended to be to the fullest
extent permitted by the laws of the State of Nevada.
Regarding indemnification for liabilities arising under the
Securities Act of 1933, which may be permitted to Directors or officers under
Nevada law, we are informed that, in the opinion of the Securities and Exchange
Commission, indemnification is against public policy, as expressed in the Act
and is, therefore, unenforceable.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
There were no disagreements related to accounting principles or
practices, financial statement disclosure, internal controls or auditing scope
or procedure since inception.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
*Attached herewith
19
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.
INDIGO INTERNATIONAL, CORP.
By:
/s/ Odelio R. Arouca
Odelio R. Arouca
CEO, CFO,
Secretary, Treasurer and Director
Date: October 31, 2011
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