CXBS Corix Bioscience Inc (CE)

On March 1, 2017, American Housing Income Trust, Inc., a Maryland corporation (“AHIT”), the predecessor to Corix Bioscience, Inc., a Wyoming corporation (the “Company”) entered into a Stock Exchange Agreement with IX Biotechnology, Inc., a Wyoming corporation (“IXB”) subject to certain conditions precedent (the “Stock Exchange Agreement”). Based upon certain representations and warranties of IXB, and its principal, Michael Ogburn, who eventually became a director and officer of the Company, the Board of Directors had authorized the issuance of 10,000,000 shares of common stock to 20 former shareholders of IXB. This materially definitive agreement had been disclosed by the Company in its August 7, 2017 Form 8-K following the closing of the Stock Exchange Agreement.

On August 14, 2018, following investigation by the remaining members of the Board of Directors, which did not include Mr. Ogburn, the Board of Directors directed legal counsel to file a civil complaint against IXB and Mr. Ogburn based on breach of contract, fraud and other common law claims seeking, amongst other things, rescission of the Stock Exchange Agreement and cancellation of the 10,000,000 shares of common stock issued to the former shareholders of IXB. The facts to support the Company’s request for rescission of the Stock Exchange Agreement are set forth in the Complaint attached hereto as an exhibit, and in the prior filings with the Commission.

IXB was served with the lawsuit on August 16, 2018. IXB failed to defend or respond to the lawsuit. On September 11, 2018, the Clerk of the District Court entered default against IXB. On October 9, 2018, the Company filed its Motion for Entry of Default Judgment against IXB. The Court granted the motion and entered the Default Judgment against IXB on October 16, 2018 ordering, among other things, that the 10,000,000 shares issued to the former shareholders of IXB be cancelled.

The rescission of the Stock Exchange Agreement, as ordered by the Court, results in the termination of the materially definitive agreement between the Company and IXB. The Company has not incurred material termination penalties as a result of the Court’s order. As a result of the Default Judgment, the shares in the Company previously issued to those shareholders of IXB will be cancelled out by the transfer agent.  The rescission of the Stock Exchange Agreement does not impair or impact any other shareholders of the Company, other than increasing their respective holdings by percentage.  The reader is encouraged to review the court docket on-line for any further information.