Life Clips and Belfrics enter into Mutual Rescission

Rhea-AI Summary

Life Clips, Inc. (OTC: LCLP) has mutually rescinded its agreement with Belfrics, originally established on August 26, 2021, to enter the blockchain and cryptocurrency sectors. Delays in completing quarterly and annual filings due to Belfrics' complex operations hindered LCLP's ability to secure necessary capital. The resignation of LCLP's PCAOB auditor, attributed to lack of resources related to Belfrics' multi-jurisdictional digital assets, compounded these issues. Additionally, complications stemming from the FTX bankruptcy obstructed finding alternative auditors, preventing the filing of crucial financial documents.

Positive

• None.

Negative

• Rescinded agreement with Belfrics indicates strategic failure.
• Delays in quarterly and annual filings limit capital-raising ability.
• Resignation of PCAOB auditor raises concerns about financial oversight.
• Inability to file Form 10-K and subsequent quarterly reports impacts transparency.

AVENTURA, Fla., Feb. 03, 2023 (GLOBE NEWSWIRE) -- Life Clips, Inc. (OTC: LCLP) (the “Company”) announced today that it and Belfrics have mutually rescinded their August 26, 2021 agreement.

LCLP acquired the Belfrics entities intending to enter the blockchain and cryptocurrency industry. At the time, the companies planned an aggressive expansion and scalability of Belfrics' operations. Due to the nature of the cryptocurrency business and the multiple jurisdictions Belfrics was operating in, Life Clips encountered numerous delays in completing its quarterly and annual filings on a regular basis. These delays affected Life Clips' ability to raise the necessary capital for Belfrics, which in turn affected its overall operations.

Most recently, LCLP’s PCAOB auditor resigned, citing lack of resources and expertise related to Belfrics’ multi-jurisdictional digital assets. The circumstances surrounding the FTX bankruptcy have provided additional difficulties in identifying any alternative auditor to complete Life Clips' annual audit, which has prevented the Company from filing our Form 10-K for the year ended June 30, 2022 and subsequent quarterly filings.

As a result of all the above, Life Clips and Belfrics believe it is in the best interest of their shareholders to mutually rescind their original transaction.

For more information on Life Clips, visit www.lifeclips.com

Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements: (i) the initiation, timing, progress and results of the Company’s research, manufacturing and other development efforts; (ii) the Company’s ability to advance its products to successfully complete development and commercialization; (iii) the manufacturing, development, commercialization, and market acceptance of the Company’s products; (iv) the lack of sufficient funding to finance the product development and business operations; (v) competitive companies and technologies within the Company’s industry and introduction of competing products; (vi) the Company’s ability to establish and maintain corporate collaborations; (vii) loss of key management personnel; (viii) the scope of protection the Company is able to establish and maintain for intellectual property rights covering its products and its ability to operate its business without infringing the intellectual property rights of others; (ix) potential failure to comply with applicable health information privacy and security laws and other state and federal privacy and security laws; and (x) the difficulty of predicting actions of the government and its regulations. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement unless required by law.

For Media and Investor Relations, please contact:

Life Clips, Inc.
(800) 292-8991
info@lifeclips.com

FAQ

What happened to Life Clips' agreement with Belfrics on February 3, 2023?

Life Clips announced that it mutually rescinded its agreement with Belfrics, originally made on August 26, 2021.

What issues led to the rescinding of the agreement between LCLP and Belfrics?

Delays in completing financial filings and difficulties in raising capital due to Belfrics' multi-jurisdictional operations were key issues.

How did the FTX bankruptcy affect Life Clips?

The FTX bankruptcy complicated LCLP's search for an alternative auditor, preventing the completion of necessary annual audits.

What impact does the rescinded agreement have on Life Clips' financial status?

It signifies a strategic failure and raises concerns about LCLP's ability to secure needed financing.