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<DIV style="width:486pt"><P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><FONT FACE="Arial"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, DC 20549</B></FONT></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>FORM 8-K <BR>
CURRENT REPORT</B></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><B>Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934</B></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><B>Date of Report (date of earliest event reported): July 12, 2012</B></P>
<P style="line-height:18pt; margin-top:6.65pt; margin-bottom:6.65pt; font-family:Arial; font-size:16pt" align=center><B>JMG Exploration, Inc.</B></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Arial" align=center>(Exact name of Registrant as specified in its charter)</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=146.55></TD><TD width=93.1></TD><TD width=73.7></TD><TD width=126></TD><TD width=3.1></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=195.4><P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; font-family:Arial; font-size:12pt" align=center><B>Nevada</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Arial" align=center>(State or other jurisdiction of incorporation or organization)</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=222.4 colspan=2><P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; font-family:Arial; font-size:12pt" align=center><B>001-32438 </B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Arial" align=center>(Commission File Number)</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=172.133 colspan=2><P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; font-family:Arial; font-size:12pt" align=center><B>20-1373949</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; font-family:Arial" align=center>(IRS employer identification no.)</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=319.533 colspan=2><P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>180 South Lake Ave.</B></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>Seventh Floor</B></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt" align=center><B>Pasadena, CA </B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=270.4 colspan=3><P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><B>91101</B></P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=319.533 colspan=2><P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Arial" align=center>(Address of principal executive offices)</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=270.4 colspan=3><P style="margin-top:4.15pt; margin-bottom:4.15pt; font-family:Arial" align=center>(Zip Code)</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=319.533 colspan=2><P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><B>Registrant&#146;s telephone number, including area code:</B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=270.4 colspan=3><P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=center><B>(626) 792-3842</B></P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:Arial" align=center>&nbsp;(Registrant&#146;s former name or former address, if changed since last Report)</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; padding-right:-9pt; font-size:12pt"><FONT FACE="Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:</FONT></P>
<P style="line-height:14pt; margin:0pt; padding-left:14.4pt; text-indent:-14.4pt; font-size:12pt">o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="line-height:14pt; margin:0pt; padding-left:14.4pt; text-indent:-14.4pt; font-size:12pt">o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="line-height:14pt; margin:0pt; padding-left:14.4pt; text-indent:-14.4pt; font-size:12pt">o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="line-height:14pt; margin:0pt; padding-left:14.4pt; text-indent:-14.4pt; font-size:12pt">o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="line-height:14pt; margin:0pt; font-family:Arial; font-size:12pt; page-break-before:always" align=justify><FONT FACE="Arial">&nbsp;</FONT></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt" align=justify><FONT FACE="Times New Roman"><B>Item 1.01 Entry into a Material Definitive Agreement</B></FONT></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>The Company has entered into a definitive agreement to acquire Ad-Vantage Networks, Inc., a development stage corporation that is engaged in digital advertising service technology (&#147;Ad-Vantage&#148;).</P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt">On completion of the proposed transaction: </P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">Ad-Vantage will become a wholly owned subsidiary&nbsp;of JMG Exploration; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">JMG will effect or have effected a one-for-two reverse stock split; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">JMG, after giving effect to the reverse split will have 19,591,593 shares of common stock outstanding, of which 16,997,388 shares will be issued to complete the acquisition; &nbsp;</FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">JMG will extend its three classes of warrants ($4.25, $5.00 and $6.00) for a period of 18 months from the closing of the transaction; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">JMG will cause the officers and directors of Ad-Vantage to become officers and directors of JMG Exploration; &nbsp;</FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">JMG will have a board of directors that will consist of five persons, two of whom will be designated by Ad-Vantage, two by JMG and one independent director to be mutually designated by the parties.</FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt"><BR>
The acquisition will result in the current stockholders of JMG owning approximately 13.2% of the Company and the security holders of Ad-Vantage, as a group, owning the balance. </P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt">The close of the transaction is subject to: </P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">completion and delivery of audited Ad-Vantage financial statements; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">there being no material adverse change in the operations and financial condition of Ad-Vantage; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">the approval of Ad-Vantage stockholders; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">the execution of lock up agreements by officers of Ad-Vantage; </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">the registration of approximately 6,381,000 shares of common stock (out of the 16,997,388 shares to be issued) pursuant to an effective registration statement filed with Securities and Exchange Commission; and</FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; font-family:Symbol; font-size:12pt"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:6pt; padding-left:36pt; font-size:12pt"><FONT FACE="Times New Roman">compliance with other customary terms and conditions. </FONT></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt">Pending close of the transaction the Company has agreed to lend $1,400,000 to Ad-Vantage on a secured basis at an interest rate of 10% per year. If the transaction is not closed, all outstanding loan amounts will be due no later than about January 11, 2014.</P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt">&nbsp;&nbsp;&nbsp;<BR>
</P>
<P style="margin:6pt"><BR>
<BR></P>
<P style="line-height:14pt; margin-top:6pt; margin-bottom:6pt; font-size:12pt; page-break-before:always"><B>Item 9.01&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>On <A NAME="OLE_LINK1"></A>July 12, 2012, JMG Exploration, Inc. issued a press release indicating that the Company entered into a definitive agreement to acquire Ad-Vantage Networks, Inc., a development stage corporation that is engaged in digital advertising service technology. A copy of the Merger Agreement, related supporting documentation, and the press release are attached to this report as indicated below.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">&nbsp;(c) <B>Exhibits</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=48.55></TD><TD width=370.7></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B>Exhibit <U>No.</U></B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt"><B><U>Description</U></B></P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>2.1</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt">Ad-Vantage Agreement and Plan of Merger </P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>10.1</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt">JMG Ad-Vantage Promissory Note</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>10.2</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt">JMG Ad-Vantage Financing and Security Agreement</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>10.3</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt">JMG Ad-Vantage Patent Security Agreement</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=64.733><P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>99.1</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=bottom width=494.267><P style="line-height:14pt; margin:0pt; font-size:12pt">Press Release dated July 12, 2012</P>
</TD></TR>
</TABLE>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt" align=justify><FONT FACE="Arial">&nbsp;</FONT></P>
<P style="margin:5pt" align=justify><BR></P>
<P style="margin:5pt" align=justify><BR></P>
<P style="margin:5pt" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt; page-break-before:always" align=center><FONT FACE="Times New Roman"><B>SIGNATURES</B></FONT></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">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.</P>
<P style="margin-top:5pt; margin-bottom:5pt; font-family:Arial; font-size:12pt"><FONT FACE="Arial">&nbsp;</FONT></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD width=157.95></TD><TD width=134.95></TD><TD width=202.85></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=210.6><P style="line-height:14pt; margin:0pt; font-size:12pt"><FONT FACE="Times New Roman">Date: July 12, 2012</FONT></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=179.933><P style="line-height:14pt; margin:0pt; font-size:12pt"><B>JMG Exploration, Inc.</B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=270.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=210.6><P style="margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-bottom:0.5pt solid #000000" valign=top width=179.933><P style="line-height:14pt; margin:0pt; font-size:12pt">/s/ Justin Yorke</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=270.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" width=210.6><P style="margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt" valign=top width=450.4 colspan=2><P style="line-height:14pt; margin:0pt; font-size:12pt">Justin Yorke, Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
</DIV></BODY>
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unsaved:///newpage2.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 12, 2012
JMG Exploration, Inc.
(Exact name of Registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
001-32438
(Commission File Number)
20-1373949
(IRS employer identification no.)
180 South Lake Ave.
Seventh Floor
Pasadena, CA
91101
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(626) 792-3842
(Registrant's former name or former address, if changed since last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
The Company has entered into a definitive agreement to acquire Ad-Vantage Networks, Inc., a development stage corporation that is engaged in digital advertising service technology ("Ad-Vantage").
On completion of the proposed transaction:
·
Ad-Vantage will become a wholly owned subsidiary of JMG Exploration;
·
JMG will effect or have effected a one-for-two reverse stock split;
·
JMG, after giving effect to the reverse split will have 19,591,593 shares of common stock outstanding, of which 16,997,388 shares will be issued to complete the acquisition;
·
JMG will extend its three classes of warrants ($4.25, $5.00 and $6.00) for a period of 18 months from the closing of the transaction;
·
JMG will cause the officers and directors of Ad-Vantage to become officers and directors of JMG Exploration;
·
JMG will have a board of directors that will consist of five persons, two of whom will be designated by Ad-Vantage, two by JMG and one independent director to be mutually designated by the parties.
The acquisition will result in the current stockholders of JMG owning approximately 13.2% of the Company and the security holders of Ad-Vantage, as a group, owning the balance.
The close of the transaction is subject to:
·
completion and delivery of audited Ad-Vantage financial statements;
·
there being no material adverse change in the operations and financial condition of Ad-Vantage;
·
the approval of Ad-Vantage stockholders;
·
the execution of lock up agreements by officers of Ad-Vantage;
·
the registration of approximately 6,381,000 shares of common stock (out of the 16,997,388 shares to be issued) pursuant to an effective registration statement filed with Securities and Exchange Commission; and
·
compliance with other customary terms and conditions.
Pending close of the transaction the Company has agreed to lend $1,400,000 to Ad-Vantage on a secured basis at an interest rate of 10% per year. If the transaction is not closed, all outstanding loan amounts will be due no later than about January 11, 2014.
Item 9.01    Financial Statements and Exhibits.
On
July 12, 2012, JMG Exploration, Inc. issued a press release indicating that the Company entered into a definitive agreement to acquire Ad-Vantage Networks, Inc., a development stage corporation that is engaged in digital advertising service technology. A copy of the Merger Agreement, related supporting documentation, and the press release are attached to this report as indicated below.
(c)
Exhibits
Exhibit
No.
Description
2.1
Ad-Vantage Agreement and Plan of Merger
10.1
JMG Ad-Vantage Promissory Note
10.2
JMG Ad-Vantage Financing and Security Agreement
10.3
JMG Ad-Vantage Patent Security Agreement
99.1
Press Release dated July 12, 2012
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: July 12, 2012
JMG Exploration, Inc.
/s/ Justin Yorke
Justin Yorke, Chief Executive Officer