Item
1.01 Entry into a Material Definitive Agreement.
On
November 20, 2007, Winsonic McCrary, LLC (“Winsonic McCrary”), a newly-created
Georgia limited liability company and wholly-owned subsidiary of Winsonic
Diversity, LLC (“Winsonic Diversity”), entered into an Asset Purchase Agreement
with Colonel McCrary Trucking, LLC (“Colonel McCrary”), a Georgia limited
liability company, and all of the members of Colonel
McCrary. Winsonic Diversity is 49% owned by Winsonic Digital Media
Group, Ltd. (the “Company”).
Pursuant
to the Asset Purchase Agreement, Colonel McCrary will sell substantially
all of
its assets to Winsonic McCrary. The aggregate purchase price for the
assets will be 4,287,490 restricted shares of the Company’s common
stock. In addition, as further consideration for the transaction,
Winsonic McCrary will assume and discharge certain liabilities and indebtedness,
as specified in the Asset Purchase Agreement. The Asset Purchase
Agreement includes representations, covenants and indemnification obligations
customary for transactions of this nature. The Asset Purchase
Agreement may be terminated upon the occurrence of certain events, including
the
failure to consummate the transaction on or prior to December 31, 2007,
subject
to certain conditions. In connection with the closing, the members of
Winsonic Diversity will make capital contributions to Winsonic Diversity
of a
sufficient number of shares of the Company’s common stock to enable Winsonic
McCrary to pay the purchase price at closing.
The
information set forth above does not purport to be complete and is qualified
in
its entirety by reference to the full text of the Asset Purchase Agreement,
a
copy of which is filed herewith as Exhibit 10.1 and incorporated herein
by
reference.
| Item 9.01 Financial Statements and Exhibits. | ||
| (d) Exhibits | ||
| 10.1 | Asset Purchase Agreement, dated November 20, 2007, by and among Winsonic McCrary, LLC, Colonel McCrary Trucking, LLC, the members of Colonel McCrary Trucking, LLC, and Larry Fletcher, as seller representative. | |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| Date: November 27, 2007 | ||||
| WINSONIC DIGITAL MEDIA GROUP, LTD. | ||||
|
|
By:
/s/ Winston
Johnson
|
|||
| Winston Johnson | ||||
| Chairman of the Board and CEO | ||||