Saturna Group — Chartered Accountants LLP
1066 West Hastings Street, Suite 2000
Vancouver, British Columbia, Canada, V6E 3X2
Phone: 604-601-8366 Fax: 1-888-295-7379
Please click here (pdf) to view audited financial statements for years ending Nov 30th, 2008 and 2007.
Management Comments – Past Audit and Changes Since Then.
You will note on Page 12 the company issued on February 29, 2008, 125,000 common shares to settle an outstanding debt valued a $151,913. Since then, another creditor has also converted a debt of $8,470 to 7,000 common shares.
(Conversion rate for both transactions was "1" Spectacular common share for every $1.21 in debt)
As well, a tremendous amount of liabilities were written or paid off in our most recent year end of Nov 30th, 2013. The company was profitable for year ending Nov 30th, 2011 and our most recent year end of Nov 30th, 2013. Audits are being updated to the end of our next 6 months, May 31st, 2014.
The company has also paid from cash flows 100% of the costs of developing and launching the start of a “global network” of e-commerce stores and referral web sites.
The point has been reached in our growth plans for our Canadian subsidiary, Ancient Mariner Exteriors Inc. to open a major programming center staffed initially with a least 30 full time programmers, several customer service representatives and an advertising sales team. The programming center must be equipped with furniture, computers etc. The company must also acquire some vehicles for the installation of awnings and other vehicles.
Management estimates this will cost approximately $600,000.
As well, Spectacular plans for its subsidiaries to pay off some or all of the remaining liabilities (the interest is a drag on our profits) and secure adequate working capital.
Accordingly, Spectacular Acquisitions Inc. has launched in May, 2014 a $2,820,000 common share offering with the subscription rate starting at $1.21 per share, then increasing. Total number of shares to be issued 1,950,000. There will be no negotiations: (on the subscription rate). No other common share offerings are contemplated at this time. The minimum investment is $100,000.
Having said this, the offering may be reduced by $600,000. Ancient Mariner Exteriors Inc., one of our Canadian subsidiaries has offered to a number of Canadian investors a convertible debenture with a face value of $600,000. The debenture will pay interest of 10% per annum and convertible into Spectacular Acquisitions Inc. common shares. Security is being offered.
To source investment capital in the United States Spectacular Acquisitions Inc. has filed with the U.S. Securities and Exchange Commission Form D., allowing it to advertise in the United States for accredited investors. Please see attached link.
Under existing Rule 501, a person qualifies as an accredited investor if he or she has either:
- An individual net worth or joint net worth with a spouse that exceeds $1 million at the time of the purchase, excluding the value (and any related indebtedness) of a primary residence.
- An individual annual income that exceeded $200,000 in each of the two most recent years or a joint annual income with a spouse exceeding $300,000 for those years, and a reasonable expectation of the same income level in the current year.