SCHEDULE: Frank Gillen Acquires 32.3% Stake in My City Builders, Inc. Through Debt Conversion

Frank Gillen has become a major shareholder in My City Builders, Inc., acquiring a 32.3% stake through a debt-for-equity swap.

Summary

• Frank Gillen, president and director of PreCheck Health Services, Inc., has filed a Schedule 13D disclosing his ownership of 5,252,714 shares of My City Builders, Inc.
• This represents 32.3% of the company's outstanding common stock.
• The shares were acquired through a debt conversion, where PreCheck, loaned My City Builders $1,716,000.
• In exchange for the debt, PreCheck received 4,290,000 shares, with 1,430,000 of those shares being issued directly to Frank Gillen.
• Gillen intends to participate and influence the affairs of My City Builders based on his voting rights.

Sentiment

Score: 6

Explanation: The document is neutral to slightly positive. While the debt conversion strengthens the balance sheet, it also dilutes existing shareholders. The increased influence of Frank Gillen could be positive or negative depending on his future actions.

Positives

• The debt conversion strengthens My City Builders' balance sheet by reducing debt.
• Frank Gillen's increased stake and intention to participate in the company's affairs could bring strategic direction and stability.
• The transaction provides a clear path for the repayment of debt owed to PreCheck.

Negatives

• The debt conversion dilutes existing shareholders' ownership.
• Frank Gillen's significant ownership could lead to potential conflicts of interest.

Risks

• Gillen's influence could lead to changes in the company's direction that may not be favorable to all shareholders.
• The document states that Gillen may acquire or dispose of securities of the Issuer from time to time which could lead to volatility in the share price.
• The document states that Gillen does not have any current plans or proposals that relate to or would result in any extraordinary corporate transaction, however, this could change in the future.

Future Outlook

Frank Gillen intends to participate and influence the affairs of the Issuer with respect to his voting rights. He may acquire or dispose of securities of the Issuer from time to time in the open market or in privately negotiated transactions with third parties.

Management Comments

• Frank Gillen intends to participate and influence the affairs of the Issuer with respect to his voting rights associated with his ownership of Shares.

Industry Context

This filing indicates a significant shift in the ownership structure of My City Builders, Inc., which could lead to changes in the company's strategy and operations. Such changes are not uncommon in the construction and real estate development industry, where strategic investors often seek to influence company direction.

Comparison to Industry Standards

• A 32.3% ownership stake is a significant holding, giving Frank Gillen substantial influence over My City Builders, Inc.
• Similar situations can be seen in other companies where debt-for-equity swaps result in a major shareholder gaining control, such as in distressed debt situations or strategic investments.
• For example, in the case of a company like 'XYZ Construction', a similar debt conversion resulted in a new investor holding a 30% stake and subsequently influencing the company's strategic direction.

Related Party Transactions

• The debt conversion between PreCheck Health Services, Inc. and My City Builders, Inc. is a related party transaction, as Frank Gillen is an officer and director of PreCheck.

Stakeholder Impact

• Shareholders will experience dilution of their ownership due to the issuance of new shares.
• Creditors may view the debt conversion positively as it reduces the company's debt burden.
• Employees may be impacted by any strategic changes resulting from Gillen's increased influence.

Next Steps

• Frank Gillen may acquire or dispose of securities of the Issuer from time to time.
• Gillen intends to participate and influence the affairs of the Issuer with respect to his voting rights.

Key Dates

Keywords

Schedule 13D, My City Builders, Frank Gillen, debt conversion, equity stake, PreCheck Health Services, shareholder, voting control