8-K: Reliant Holdings Completes Acquisition of HLDCO, LLC and Announces Leadership Change

Reliant Holdings, Inc. has acquired 100% of HLDCO, LLC, resulting in a change of control and the appointment of Claude Zdanow as CEO and President.

Summary

• Reliant Holdings, Inc. completed the acquisition of 100% ownership of HLDCO, LLC on June 17, 2024.
• The acquisition was made from Mount Olympus Ventures, Inc., Apollo Capital Corp., and M2B Funding Corp.
• The consideration for the acquisition included 75,000,000 shares of Reliant's common stock, 3,645 shares of Series B Preferred Stock, and 3,900,000 shares of Series C Preferred Stock.
• A change in control of Reliant Holdings occurred on June 13, 2024, with Claude Zdanow gaining control.
• Claude Zdanow's control was established through his appointment as a director, President, and CEO, and the acquisition of 100% of the company's Series A Preferred Stock for $400,000.
• Elijah May resigned from his positions as director, CEO, and President on June 13, 2024.
• Reliant Holdings granted Elijah May an option to purchase assets related to the company's operations prior to the HLDCO acquisition, vesting in six months, with a five-year term.
• Elijah May also has final approval on actions related to pre-HLDCO assets until the option is exercised, unless the actions are to protect the company from harm.

Sentiment

Score: 6

Explanation: The document indicates a significant change in the company's structure and leadership, which could be positive or negative depending on execution. The acquisition and leadership change introduce both opportunities and risks, leading to a neutral to slightly positive sentiment.

Positives

• The acquisition of HLDCO, LLC could bring new assets and opportunities to Reliant Holdings.
• The appointment of a new CEO and President may bring fresh leadership and strategic direction.
• The option granted to Elijah May could provide a smooth transition and potential for future collaboration.

Negatives

• The change in control and leadership could create uncertainty in the short term.
• The issuance of a large number of shares could dilute existing shareholders.
• The company is taking on the liabilities related to the operations and physical assets of the Company prior to the acquisition of HLDCO, LLC.

Risks

• The integration of HLDCO, LLC may present operational and financial challenges.
• The new management team may face difficulties in executing their strategic vision.
• The option granted to Elijah May could lead to potential conflicts of interest or disputes in the future.
• The company is taking on the liabilities related to the operations and physical assets of the Company prior to the acquisition of HLDCO, LLC.

Future Outlook

The company will focus on integrating HLDCO, LLC and executing its new strategic direction under the leadership of Claude Zdanow. The company will also manage the option agreement with Elijah May.

Management Comments

• Claude Zdanow was appointed as a director, President, and Chief Executive Officer of the Company.
• Elijah May resigned from his positions as director, Chief Executive Officer, and President of the Company.

Industry Context

The acquisition of HLDCO, LLC and the leadership change at Reliant Holdings could be part of a broader trend of consolidation and strategic repositioning within the company's industry. The company is listed on the OTCQB market, which is generally considered a higher risk market than the major exchanges.

Comparison to Industry Standards

• It is difficult to compare this acquisition to industry standards without knowing the specific industry of HLDCO, LLC.
• The issuance of a large number of shares is not uncommon in acquisitions, but the impact on existing shareholders will depend on the company's future performance.
• The leadership change is a significant event, and its success will depend on the new management's ability to execute their strategy.

Management Changes

Related Party Transactions

• Mount Olympus Ventures, Inc., owned by Claude Zdanow, has a material relationship with the Company due to his appointment as a director and officer, and their acquisition of 100% of the Series A Preferred Stock.

Stakeholder Impact

• Shareholders may experience dilution due to the issuance of new shares.
• Employees may experience changes in leadership and company direction.
• Customers and suppliers may be affected by the integration of HLDCO, LLC.

Next Steps

• The company will integrate HLDCO, LLC into its operations.
• The new management team will implement its strategic plan.
• The company will manage the option agreement with Elijah May.

Key Dates

Keywords

acquisition, change of control, leadership change, HLDCO, Claude Zdanow, Elijah May, preferred stock, common stock, option agreement