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

 FIELD: PAGE; SEQUENCE: 6; VALUE: 1

  FIELD: SEQUENCE; TYPE: ARABIC; NAME: PAGENO 4 FIELD: /SEQUENCE  

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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