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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): July 1, 1997
INTERNATIONAL RESORT DEVELOPERS, INC.
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(Exact name of registrant as specified in its charter)
IDAHO 1-6110 82-0291307
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
2980 S. Rainbow Blvd., Suite 100, Las Vegas, NV 89102
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702) 876-9329
INTERNATIONAL BASIC RESOURCES, INC.
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(Former name or former address, if changed since last report)
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FORM 8-K
Item 2. Acquisition of Assets
On August 25, 1997, International Resort Developers, Inc. ("IRD")
entered into an agreement to acquire all of the shares of World Lynx
Communications Corp. ("World Lynx"), a Nashville-based telecommunications
company. The agreement is subject to approval by the shareholders of IRD, at a
meeting which is expected to be held in October, 1997. World Lynx's corporate
name has now been changed to, and will hereafter be known as, Ameristar
Worldwide Entertainment Corp. ("Ameristar").
The twelve individuals and corporations who own all of the shares of
World Lynx (the "Sellers") will acquire 47.5% of the shares of IRD (as
calculated after issuance of the shares to the Sellers), with the right to
receive 3,000 additional IRD shares (approximately .085% of the number of
outstanding shares of IRD after the initial issuance of shares to the Sellers)
for each $1,000 of net after-tax profit in excess of $1,000,000 earned by
Ameristar in each of the calendar years 1998 and 1999.
Ameristar is a provider of Internet access, web site design and site
management services, voice communications sytems, including residential and
commercial long distance service, direct broadcast service, and home theatre
systems. Its products and services are marketed through independent
distributors located throughout the United States. The Company employs 20
persons in its offices in Nashville, TN and Little Rock, Arkansas.
World Lynx was incorporated in 1994, and up through August of 1997 has
been engaged in business as an internet service provider, providing internet
access, web site design and site management services. Its revenues, in calendar
1996, were approximately $937,686, and its net loss for that year approximately
$50,000. World Lynx had, previous to the acquisition now reported, acquired the
name "Ameristar", as well as its network of distributors and other related
assets, from Growth Strategies, Inc., one of the Sellers. Ameristar will pay to
Growth Strategies,Inc. a royalty of 2 1/2% of its net sales revenues (gross
sales, less commissions) on its sales after September 1, 1997.
Samuel Watson, previously President and CEO of Growth Strategies, Inc.
and currently of Ameristar, will continue as President and CEO of Ameristar,
pursuant to an employment contract terminable by either party upon twleve
months' prior written notice.
Patrick Magee will continue as the President and CEO of IRD, The
agreement providcs that the Company will nominate for election as two of the
five directors to be elected by the shareholders at the shareholders' meeting
in October, 1997, Samuel B. Watson and Donald Spears, two of the Sellers.
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Item 5. Other Events
IRD, together with former officers and directors of the
Company, namely Allen Ferguson, Alton Jones and Nigel Spinks, have been named
in a civil action commenced in the Circuit Court of the Fifteenth Judicial
Circuit in Palm Beach County, Florida, in July, 1997. The complaint has
allegedly been served upon the Company, although the Company's time to answer
has not yet expired. The action alleges that the defendants fraudulently
induced plaintiff Andaurex International Inc., a Bermuda corporation, to
purchase 66,666 shares of the Company (as adjusted for the May 12, 1997
consolidation of shares on a 1 for 30 basis) from shareholders of the Company;
and in particular, that the defendants intended that said shares not be
transferred into the name of Andaurex, or in street name, as and when promised,
and that during the period in which the shares were not transferred on the
books of the Company, their value allegedly declined from a high of $26.10
cents per share (as adjusted for the May 12, 1997 consolidation of shares) to
$3.60 per share (as adjusted for said consolidation). The action claims for
compensatory damages, together with costs and interest.
The Company does not believe that the allegations against it
have merit, and intends to answer and defend against the claim.
Item 7. Exhibits: Exhibit 10.1 - Agreement between IRDP and World
Lynx, Communications Corp., dated August 25, 1997.
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.
INTERNATIONAL RESORT DEVELOPERS, INC.
By: S/ Patrick Magee
Patrick Magee, President
Date: September 10, 1997
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EXHIBIT 10.1
AGREEMENT FOR THE SALE AND PURCHASE OF SHARES
DATE: August 25, 1997
PARTIES
1. THE PARTIES SPECIFIED IN THE SCHEDULE HERETO ("the Sellers")
2. INTERNATIONAL RESORT DEVELOPERS, INC. (incorporated in Idaho) of ("the
Buyer")
RECITALS
(1) World Lynx Communications Corp. ("the Company") is incorporated in Arkansas
with an authorized capital of 1,000 shares of $1.00 each all of which are
issued ("the Shares") and are held by the Sellers as shown in the Schedule
hereto. The Company is in the course of changing its name to Ameristar
Worldwide Entertainment Corporation.
(2) The Company carries on from premises at 1801 West End Avenue, Suite 1110,
Nashville, Tennessee and 111 Center Street, Suite 1309, Little Rock, Arkansas
(together referred to as "the Premises") the businesses of network marketing
and the custom provision of internet services ("the Business") and is the owner
of the trade names "Ameristar Worldwide Entertainment" and "World Lynx".
(3) The Buyer is a Reporting Company whose shares are registered with the SEC
and quoted on NASDAQ. The authorized capital of the Buyer is 100,000,000
shares of $0.10 each of which approximately 2,000,000 are, or will be at
closing, in issue.
(4) The Sellers are willing to sell and the Buyers to buy the Shares on the
terms of this Agreement.
IT IS HEREBY AGREED AS FOLLOWS
Sale and Purchase
1. Subject to the conditions herein contained the Sellers agree to sell and the
Buyer agrees to buy all the Shares. The consideration for the sale shall be:
(a) The issue by the Buyer to the Seller of such numbers of shares in
the capital of the Buyer as shall provide the Sellers with 47.5% of
the issued capital of the Buyer as enlarged by such issue, ("the Basic
Consideration Shares") and
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(b) The further issue of shares in the capital of the Buyer ("the
Additional Consideration Shares") on the basis of 3,000 such shares
for each $1,000 of after-tax net profit earned by the Company (i.e.
World Lynx Communications Corp.) in excess of $1,000,000 during each
of the calendar years 1998 and 1999, as shown in the Company's audited
accounts. Such number of Additional Consideration Shares as are to be
issued pursuant to this clause shall be issued to the Sellers, or as
the Sellers may direct, within ten working days of the auditors of the
Company certifying the accounts of the Company for the year in
question, as fully paid and ranking equally in all respects with
existing issued share capital of the Buyer. Provided that
notwithstanding the foregoing, the above-said number of shares to be
issued for each $1,000 of after-tax net profit shall be adjusted
pro-rata to reflect any stock split or consolidation (reverse stock
split) of shares of the Buyer hereafter effected.
(c) It is acknowledged by the Sellers that the Basic Consideration
Shares and the Additional Consideration Shares may not be
re-transferred by Sellers, in a public offering or sale, inclusive of
sales on NASDAQ, without an effective registration statement, covering
such offer and/or sale, under the Securities Act of 1933, and any
applicable provisions of state law, unless an exemption from such
registration is available; and that the Basic Consideration Shares and
Additional Consideration Shares will be suitably legended to reflect
said restricted status. The Buyer undertakes that as soon as
practical after the issuance of the Basic Consideration Shares, and
after the issuance of Additional Consideration Shares, it shall file
such registration statement or statements with the SEC as may be
necessary to qualify said shares for resale in the public markets,
under federal law, and will utilize its best efforts to secure the
effectiveness of such registration statement or statements, and as
expeditiously as possible.
Conditionality
2. Each of the parties' respective obligations to close the transaction hereby
agreed to shall be conditional upon:
(a) The approval of the transaction by the shareholders of the Buyer
at a duly called meeting of its shareholders. Buyer agrees that it
will utilize its best efforts to hold such a meeting in October, 1997,
pursuant to compliance with the rules of the Securities and Exchange
Commission regarding necessary filings with the Commission and
mailings to shareholders in connection with such meeting.
(b) There having been no breaches by the other party of any of the
provisions hereof prior to the closing date and all
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warranties and representations made by either party remain correct as
at closing.
(c) There having been no material adverse change in the financial
position or prospects of the other party prior to the closing date
since the date on which the affairs of such other party were duly and
diligently investigated prior to the execution hereof.
Closing
3. Closing shall take place at Little Rock, Arkansas within ten days of the
approval of the transaction by the shareholders of the Buyer, or at such other
time and place as the parties may agree, at which time:
(a) The Sellers shall deliver to the Buyer:
(i) Certificates representing all of the Shares endorsed for
transfer to the Buyer by the owner of record thereof.
(ii) A corporate resolution of any corporate holders of the
Shares authorizing the transfer thereof in such form as the
Buyer shall require.
(iii) A resolution of the Directors of the Company resolving
to register the transfer of the Shares to the Buyer.
(iv) The corporate books and records of the Company.
(v) A resolution of the Directors of the Company appointing as
directors and officers of the Company such persons as the
Buyer shall have nominated.
(vi) The resignations of the directors of the Company which
the Buyer shall have the option to decline.
(vii) Certificates of all banks at which the Company has
accounts (including merchant accounts) of the balances at the
close of business the previous day with copies of all bank
mandates and signature authorities.
(viii) An opinion of the Company's counsel, satisfactory to
the Buyer, as to the following:
(1) That the Company is validly incorporated
and is in good standing in the state of Arkansas.
(2) That the Shares in the Company which have been
assigned to the Buyer are validly issued and non-
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assessable, and constitute all of the issued
and outstanding shares of the Company.
(3) That the assignments of the Shares to the Buyer
have been validly executed by the Sellers; that said
assignments are effective to convey, and have
conveyed, all of the rights and interest of the
Sellers in said shares to the Buyer; and that the
Buyer, as a result of said assignments, is vested
with all rights, respecting the Shares or which
derive from ownership of the Shares, as were
previously possessed by the Sellers.
(4) That there are no agreements, corporate governing
instruments, or provisions of law, which prevent or
otherwise condition the transfer of the Shares by the
Sellers to the Buyer, or which prevent or condition
the vesting of all voting and other rights attendant
to ownership of the Shares, in the Buyer.
(5) That the resignations of the Directors of the
Company are effective; that the resolution of such
Directors, prior to their resignation, appointing as
directors and officers of the Company those persons
nominated by the Buyer, has been duly adopted; and
that said resolutionis effective pursuant to the
corporate governing documents of the Company, and all
applicable laws, to effectuate the appointment of the
persons nominated by the Buyer as directors and
officers of the Company without further necessity of
shareholder approval or other corporate action.
(6) That counsel for the Company is unaware of any
pending litigations in which claims have been made
against the Company, or of other claims which have
been made or threatened against the Company, or of
circumstances which could give rise to any such
claims; nor is counsel aware of any failure of
compliance by the Company with applicable laws and
regulations relating to its affairs and activities.
(ix) A written agreement between the Company and Sam Watson,
in form satisfactory to Buyer, providing for the services of
Mr. Watson as President and CEO of the Company, terminable by
either party on not less than 12 months written notice.
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(b) The Buyer shall:
(i) Either deliver the Basic Consideration Shares to the
Sellers or as they shall direct, or shall, having passed the
necessary directors' resolution to issue the Basic
Consideration Shares, give an irrevocable direction to the
Buyer's Transfer Agents to issue the Basic Consideration
Shares to the Sellers or as they may direct.
(ii) Nominate Samuel B. Watson and Donald Spears as two of the
five directors proposed by management for election by the
shareholders at the meeting of shareholders of the Buyer to be
held in October, 1997.
If closing shall not have occurred within two months of the date hereof, as the
result of failure of warranties or otherwise, either party may by written
notice to the other terminate this contract, and neither party shall have a
claim against the other in respect of such termination except for willful
failure to close or to meet the conditions for closing.
Warranties and representations
4. The Sellers warrant and represent to the Buyer in relation to the Company,
except where stated otherwise, effective as at the date thereof and as at the
date of closing.
(a) That the accounting and financial information disclosed to the
Buyer in writing is correct and comprehensive in all material respects
in its account of the financial affairs, assets and liabilities of the
Company and the Business and that the net assets of the Company as
represented in the shareholders equity in its balance sheet as at the
date of closing shall be not less than $250,000.
(b) That there has been no material deterioration in the financial
position or prospects of the Company or the Business since the making
of the disclosures referred to in (a) above.
(c) That all contracts, licenses and permits on which the Company
relies in the course of the Business or any part thereof are in full
force and effect and that there is no breach of any such contract
license or permit. No facilities of the type used in the Business
have been revoked or denied to the Company or granted on onerous
terms.
(d) That the certificate of incorporation and by-laws of the Company,
as provided to the Buyer, are those currently in effect, and
constitute the totality of corporate documents governing the operation
of the Company; and without limitation, that there are no other
agreements, including
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agreements among shareholders or between shareholders and the Company,
which affect the governance of the Company, relations among
shareholders, or relations between shareholders and the Company.
(e) That the Company is the owner of such rights as may exist in the
tradenames "World Lynx" and "Ameristar Worldwide Entertainment", has
not licensed the right to use of these names to any other persons, and
that the Sellers are not aware of any infringing uses of said names.
(f) That the Company possess a proprietary database of approximately
9,000 current and/or former customers, and has not licensed or
otherwise agreed to the use of this database by any other person.
(g) That the Company maintains in force effective insurance cover
against all risks that are normally insured against in the fields of
the Business.
(h) That save as disclosed in writing the Company is not a party to
any litigation and that there are no claims made or threatened against
the Company and that the Company is not aware of any circumstances
which could give rise to any such claim.
(i) That the opinion of counsel to the Company given pursuant to
clause 3(a) is correct in all respects.
(j) That the Company is in compliance with all applicable laws and
regulations relating to its affairs and activities and has made all
required returns in full accurate timely and compliant manner. No
penalties are payable in respect of any such return including tax
returns.
(k) That pending closing it will not:
(i) hold any meeting of shareholders or permit to be passed
any shareholders' resolution.
(ii) undertake any transaction not in the normal course of
business.
(iii) borrow or lend or give any guarantee or security.
(iv) hire or dismiss any employee without the consent of the
Buyer.
(v) make any distribution.
(vi) issue any shares.
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but will operate its business as a going concern in all respects as
hitherto, except insofar as may have been consented to by the Buyer.
5. The Buyer warrants and represents to the Sellers
(a) It is in good standing in the State of Idaho and is current in its
filings with the Securities and Exchange Commission.
(b) That since the filing of its 10-QSB for its quarter ending March
31, 1997, there have been no material changes in the business assets
or affairs of the Buyer, except as disclosed in Form 8-K filed by the
Buyer on or about August 4, 1997 pertaining to the sale of its
concession in the Port of Ensenada, Mexico, and except as otherwise
disclosed in or pursuant to this agreement. Further, that Form 10-KSB
filed by the Buyer for its fiscal year ended June 30, 1996 and
subsequent Form 10-QSB's filed by the Buyer are accurate and complete
in all material respects.
(c) That other than as disclosed in the above filings, the Buyer is
not a party to litigation, is not aware of any claim, and is not aware
of circumstances which may give rise to any claim, which the directors
of the Buyer deem material to Buyer's financial position, save that
the Buyer is aware of a complaint filed in Florida by Andaurex
International Inc., but which has not been served on the Company, full
details of which have been disclosed to the Sellers.
(d) That the Buyer is in compliance with all applicable laws and
regulations insofar as they affect it assets and activities.
(e) That pending closing it will not make any distribution.
6. The Sellers agree that during a period of three (3) years from the date of
Closing, they will not engage in the business of network marketing or the
custom provision of internet services within the United States, or to customers
in the United States, or otherwise compete with the Buyer or any of its
subsidiaries in regard to any business heretofore conducted by any of the
Sellers.
7. This agreement shall inure to the benefit of, and shall be binding upon, the
parties and their subsidiaries, successors and assignees. The provisions of
this agreement, including without limitation the provisions of Section 6,
above, shall survive the Closing.
8. This agreement may be executed in separate counterparts, and when so
executed by all of the parties, will be valid as if all signatories had
executed the same document.
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THE SCHEDULE
<TABLE>
<CAPTION>
SELLERS NO. OF SHARES SOLD NO. OF BASIC
CONSIDERATION
SHARES
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<S> <C> <C> <C>
Samuel B. Watson, 9412 Highwood Hill Road
As Trustee Brentwood 150 252,831
TN 37027
Growth Strategies Inc P.O. Box 27740
5300 W. Sahara Ave. 300 505,662
Suite 101
Las Vegas, NV 89126
Lewis Pollock c/o Spears Law Office 25 42,138
P.O. Box 622
Malvern, AR 72104
Dan Dixon c/o Spears Law Office 25 42,138
P.O. Box 622
Malvern, AR 72104
Donald Spears c/o Spears Law Office 25 42,138
P.O. Box 622
Malvern, AR 72104
Romford Enterprises SA Dorpstraat, Landsmeer, 25 42,138
Amsterdam, Netherlands
Waterlink Limited Calle san Miguel 13 Beniarres 74 124,729
Alicante 0385
Hawk Continental Ltd Calle del Gerro, 18, 84 141,585
Los Monteros 29600 Marbella,
Malaga, Spain
Kisaran Enterprises 5, Park Farm Close 64 107,874
Limited London N22, UK
Salfolia Trading 273, Upper Lisburn Road 84 141,585
Limited Belfast, UK
Leander Limited 2, Heath Close 70 117,988
London W5, UK
Rathluire Limited 505, Lisburn Road 74 124,729
Belfast UK
</TABLE>
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IN WITNESS WHEREOF, this Agreement is executed by the parties as
specified
"BUYER"
International Resort
Developers, Inc.
By: S/ Pieter Oosthuizen
Pieter Oosthuizen
Date: August 25, 1997
"SELLERS"
S/ Samuel B. Watson
Samuel B. Watson, Growth Strategies, Inc.
As Trustee By: S/ David McKarness
Date: August 25, 1997 Date: August 25, 1997
S/ Lewis Pollock S/ Dan Dixon
Lewis Pollock Dan Dixon
Date: August 25, 1997 Date: August 25, 1997
S/ Donald Spears
Donald Spears Romford Enterprises SA
Date: August 25, 1997 By: S/ J.A. DeGroot
Date: August 25, 1997
Waterlink Limited Hawk Continental Ltd
By: S/ J.W. Godfrey & Co. By: S/ J.W. Godfrey & Co.
Date: August 25, 1997 Date: August 25, 1997
Kisaran Enterprises Limited Salfolia Trading Limited
By: S/ J.W. Godfrey & Co. By: S/ J.W. Godfrey & Co.
Date: August 25,. 1997 Date: August 25, 1997
Leander Limited Rathluire Limited
By: S/ J.W. Godfrey & Co. By: S/ J.W. Godfrey & Co.
Date: August 25, 1997 Date: August 25, 1997
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