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UNIVERSAL BIOENERGY, INC. FILES (8-K) Disclosing Other Events, Financial Statements and Exhibits

May 13, 2014



Item 8.01 Other Events

Universal Bioenergy Inc., (The Company) entered into "Acquisition, Marketing and Distribution Agreement" (the "Agreement") with Global Energy Group LLC (GEG). The Agreement is for the parties to engage in a venture whereby GEG will engage the Company as its agent to develop a customer base for the sale of energy products and to sell the energy products to those customers.

GEG, our majority shareholder, is a holding company whose primary business is the acquisition of strategic business assets, companies, and investment or joint ventures in both private and public companies creating a mandated diversity in GEG's portfolio. GEG has developed an energy order fulfillment platform to engage in the physical and financial trading of natural gas, electricity, petroleum and related energy commodities which it proposes to use to enable the Company to purchase energy supplies in larger quantities and to generate greater profit. With offices in both the United States and United Kingdom, GEG is positioned to take advantage of strategic relationships with investor partners and commodities traders in North America, Europe, and world emerging markets. In April 2013, Global Energy Group acquired a major stake in the Company and is now preparing to expand and capitalize on its investment. Global Energy Group LLC owns 1,268,630,000 shares, or 44.78% of the Company's 2,833,340,081 outstanding shares of common stock.

The Company and GEG are positioned to take advantage of strategic relationships with investor partners and established commodities traders in North America, Europe and the global energy markets. The companies plan to leverage their relationships through established energy traders to engage in the physical and financial trading of natural gas, electricity, petroleum, diesel fuel, jet fuel and related energy commodities. The parties plan to purchase and trade energy contracts on the spot and long-term market, and trade financial futures and power contracts to generate higher revenues, margins and earnings.

The partners may use financial derivatives and other contracts to hedge against the associated risks of both physical and financial trading. This will include a diverse portfolio of energy contracts, but emphasize energy commodities such as natural gas, petroleum, diesel and jet fuel and electricity. The alliance allows the Company to access a relationship with GEG that has its own established energy order fulfillment platform. The Company is projecting that an estimated $100 million in annual revenues could be generated through the venture from the financial trading from the energy futures contracts, and the estimates the profits could be from 2% to 20%, or an estimated $2 to $20 million.

The terms of the Agreement include among other things that;

GEG will engage the Company as its agent to develop a customer base for the sale of energy products and to sell the energy products to those customers.

The Company will develop a customer base to whom the Principal may sell energy products, and sell energy products on Principals behalf to such customers. GEG will provide technical and management assistance, provide guidance and advice on marketing, and, perform other related consulting, advisory and related services to the Company as may be reasonably requested from time to time form GEG.

The "Acquisition, Marketing and Distribution Agreement" has been attached as an Exhibit to this report in order to provide investors and security holders with information regarding its terms. It is not intended to provide any other financial information about the Company, Global Energy Group LLC, or their respective subsidiaries and affiliates. The representations, warranties and covenants contained in the "Acquisition, Marketing and Distribution Agreement", were made only for purposes of that Agreement and as of specific dates; were solely for the benefit of the parties to the "Acquisition, Marketing and Distribution Agreement"; may be subject to limitations agreed upon by the parties, including being qualified by confidential disclosures made for the purposes of allocating contractual risk between the parties to the "Acquisition, Marketing and Distribution Agreement" instead of establishing these matters as facts; and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Investors should not rely on the representations, warranties and covenants or any description thereof as characterizations of the actual state of facts or condition of the Company, GEG or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties and covenants may change or be waived after the date of the Agreement, which subsequent information may or may not be fully reflected in public disclosures by the Company and GEG, except as required pursuant to the disclosure requirements of the Securities Exchange Act of 1934, as amended.

The foregoing description of the "Acquisition, Marketing and Distribution Agreement" is only a summary, does not purport to be complete, and is qualified in its entirety by reference to the "Acquisition, Marketing and Distribution Agreement".

The "Acquisition, Marketing and Distribution Agreement" was approved by the Board of Directors of the Company.

Item 9.01 Financial Statements and Exhibits.

Exhibit No. Description



9.1 "Acquisition, Marketing and Distribution Agreement" by and among Universal Bioenergy Inc., and Global Energy Group LLC, dated May 9, 2014.


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Source: Edgar Glimpses


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