8-K: Regen BioPharma Engages Social Media Consultant and Amends Sublease Agreement

Regen BioPharma has entered into an agreement for social media consulting services and amended its sublease agreement to include shared expenses.

Summary

• Regen BioPharma entered into an agreement with Value Quest, Inc. for social media consulting services for a one-year term starting April 26, 2024.
• Value Quest will be compensated with 20,068 shares of Regen BioPharma's Series A Preferred stock.
• The company also amended its sublease agreement with BST Partners, effective January 1, 2024, to include reimbursement for shared expenses in addition to the $5,000 monthly base rent.
• The original sublease agreement, effective January 14, 2022, was for office space at 4700 Spring Street, Suite 304, La Mesa, California, on a month-to-month basis.

Sentiment

Score: 5

Explanation: The document outlines routine business activities, with no significant positive or negative implications. The issuance of stock for services is a common practice for early stage companies.

Positives

• The company is actively engaging in social media marketing through a consulting agreement.
• The company has secured office space with a known entity.

Negatives

• The company is issuing shares of preferred stock as compensation, which may dilute existing shareholders.
• The company is now responsible for shared expenses in addition to the base rent, increasing its monthly costs.

Risks

• The issuance of preferred stock could dilute existing shareholders.
• Increased monthly expenses due to shared costs could impact the company's financial performance.
• The social media consulting agreement may not yield the desired results.

Future Outlook

The company will be working with Value Quest, Inc. for social media consulting over the next year and will be paying shared expenses for its office space.

Management Comments

• The company has entered into a social media consulting agreement with Value Quest, Inc.
• The company has amended its sublease agreement with BST Partners to include shared expenses.

Industry Context

The engagement of a social media consultant reflects a growing trend among companies to enhance their online presence and brand awareness. The amendment to the sublease agreement is a common business practice to clarify cost responsibilities.

Comparison to Industry Standards

• Many small and medium-sized companies use social media consultants to improve their online presence, this is a common practice.
• Sublease agreements are common in commercial real estate, and amendments to clarify cost responsibilities are also standard practice.
• The use of stock as compensation is common for early stage companies, but the amount of stock issued should be compared to industry standards for similar services.

Related Party Transactions

• The sublease agreement is with BST Partners, which is controlled by David Koos, who is the sole officer and director of Regen BioPharma, Inc.

Stakeholder Impact

• Shareholders may experience dilution due to the issuance of preferred stock.
• The company's expenses will increase due to the shared expense reimbursement.
• The company's social media presence may improve due to the consulting services.

Next Steps

• Value Quest, Inc. will begin providing social media consulting services.
• The company will begin reimbursing BST Partners for shared expenses.

Key Dates

Keywords

social media consulting, sublease agreement, preferred stock, shared expenses, office space, Regen BioPharma, Value Quest, BST Partners