Legacy Ventures International, Inc. (OTCQB: LGYV) distributed food, beverages, and body care products, through the company’s subsidiary, RM Fresh Brands Inc. The distribution company is seeing shares soar 148% during early trading on Friday, August 26, 2016. Over the past three months, Legacy Ventures International, Inc has seen average daily volume of around 179,316 shares. However, nearly 262,800 shares or dollar volume of $7,752.60 has already exchanged hands during early trading Friday.

There is no news out today that would explain the hefty rally in shares of Legacy Ventures International, Inc. However, Legacy Venture International, Inc. is engaged in a turnkey partnership approach and looking to continue expanding services. The company’s major warehouse and distribution center is located in Toronto, Canada. While Legacy Ventures International, Inc primarily operates in Canada, the company is planning expansions into the United States and the Middle East.

Legacy Venture International, Inc operates three businesses: Product Sales, Logistics and Warehousing, and Marketing. Ultimately, the distribution company relies on Product Sales for 10-50% of gross profit, Logistics & Warehousing accounts for 5-15% of gross profit, and Marketing accounts for 5-15%.

During the second quarter of 2016, Legacy Venture International, Inc reported total revenue of $79,000, but a net loss of $564,000. Here is the company’s second quarter 2016 earnings filing:

LEGACY VENTURES INTERNATIONAL INC.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

As at March 31, 2016 and June 30, 2015

       
  As at March 31, 2016  As at June 30,

2015

 
  (unaudited)  (audited) 
  $  $ 
CURRENT ASSETS      
Cash  16,327   3,380 
Accounts and other receivables, no allowance [Note 6]  307,059    
Inventories  46,892    
Harmonized sales tax recoverable  16,935    
Prepaid expenses [Note 9]  237,273   1,343 
Total current assets  624,486   4,723 
         
Goodwill [Note 5]  309,000    
Intangible assets [Note 5]  422,100    
TOTAL ASSETS  1,355,586   4,723 
         
CURRENT LIABILITIES        
Accounts and other payables [Note 6]  248,479    
Accrued expenses  16,291   11,850 
Due to related parties [Note 10]  41,487    
Due to stockholders [Note 4]  9,429   32,661 
Note payable [Note 7]  53,363    
TOTAL LIABILITIES  369,049   44,511 
STOCKHOLDERS’ EQUITY        
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no share issued and outstanding as at March 31, 2016 and June 30, 2015, respectively [Note 9]      
Common stock, $0.0001 par value, 100,000,000 shares authorized, 29,527,000 and 51,800,0000 common shares issued and outstanding as at March 31, 2016 and June 30, 2015, respectively [Note 9]  2,953   5,180 
Additional paid-in-capital  3,766,480   62,903 
Accumulated other comprehensive gain (loss)  21,128   (98)
Accumulated deficit  (2,804,024)  (107,773)
Total stockholders’ equity  986,537   (39,788)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  1,355,586   4,723 

Going concern [Note 2]

Subsequent events [Note 11]

See accompanying notes to the condensed interim consolidated financial statements

FIELD: PAGE; SEQUENCE: 5; VALUE: 1

 FIELD: SEQUENCE; TYPE: ARABIC; NAME: PAGENO 3 FIELD: /SEQUENCE 

FIELD: /PAGE

LEGACY VENTURES INTERNATIONAL INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)

             
  Three months ended March 31, 2016  Three months ended March 31, 2015  Nine months ended March 31, 2016  Nine months ended March 31, 2015 
  $  $  $  $ 
             
REVENUE  79,074      116,492    
                 
COST OF SALES  31,302      84,129    
GROSS PROFIT  47,772      32,363    
                 
OPERATING EXPENSES                
Professional fees [Note 9]  523,746   3,082   1,144,981   71,122 
Management fees [Note 10]  47,626      101,541    
General expenses  15,404      53,427   184 
TOTAL OPERATING LOSS  (539,004)  (3,082)  (1,267,586)  (71,306)
                 
OTHER (INCOME) EXPENSES                
Impairment of goodwill [Note 5]        1,394,135    
Interest and bank charges  1,739   50   5,604   160 
Amortization expense [Note 5]  23,450      46,900    
Forgiveness of loan [Note 8]        (17,974)   
NET LOSS BEFORE INCOME TAXES  (564,193)  (3,132)  (2,696,251)  (71,466)
Income taxes            
NET LOSS  (564,193)  (3,132)  (2,696,251)  (71,466)
                 
Translation adjustment  7,025   (316)  21,128   (289)
                 
COMPREHENSIVE LOSS  (557,168)  (3,448)  (2,675,123)  (71,755)
                 
LOSS PER SHARE, BASIC AND DILUTED  (0.0193)  (0.0004)  (0.0737)  (0.0106)
                 
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING  29,201,835   7,400,000   36,591,887   6,741,392 

See accompanying notes to the condensed interim consolidated financial statements

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FIELD: /PAGE

LEGACY VENTURES INTERNATIONAL INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

       
  Nine months ended March 31, 2016  Nine months ended March 31, 2015 
  $  $ 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss  (2,696,251)  (71,466)
Adjustments to reconcile net loss to net cash used in operating activities:        
Impairment of goodwill [Note 5]  1,394,135    
Issuance of shares for services [Note 9]  954,077   53,360 
Amortization expense [Note 5]  46,900    
Forgiveness of loan [Note 8]  (17,974)   
         
Changes in operating assets and liabilities:        
Accounts receivable  (208,167)   
Inventories  (14,472)   
Harmonized sales tax recoverable  (18,962)   
Prepaid expenses  1,942    
Accounts payable  205,894    
Due to related parties  40,248     
Accrued expenses  4,176   1,175 
Net cash used in operating activities  (308,454)  (16,931)
         
CASH FLOWS FROM INVESTING ACTIVITIES        
Cash acquired on acquisition [Note 5]  3,671     
Net cash provided by investing activities  3,671    
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Due to stockholders  (27,264)  14,040 
Proceeds from issuance of common stock  150,000   9,183 
Proceeds from issuance of convertible note  180,000    
Net cash provided by financing activities  302,736   23,223 
         
Effect of foreign currency translation  14,994   (289)
         
Net increase (decrease) in cash during the period  (2,047)  6,292 
         
Cash, beginning of period  3,380   5,366 
Cash, end of period  16,327   11,369 

Cash paid for interest nil nil
Cash paid for taxes nil nil

See accompanying notes to the condensed interim consolidated financial statements

 

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