Bots Inc (BTZI)

[lesgetrich]

You're correct, they're two separate provisions. I misread it on the first reading and thought they were connected since the price of the warrants can be subtracted from the debt (but doesn't have to be). However, there are several reasons to believe that this is a legitimate long term partnership.

If the number of shares they convert exceeds 4.9% of the total outstanding shares of PNTV, roughly 20 million shares ($50,000 at $.0025/share pps), their warrants become worthless. They can't recoup their investment unless the company generates enough revenue to repay the debt or the pps increases significantly. They would need to convert and be able to sell 50 million shares at $.05/share to realize $2.5 million. It's more likely they're looking at this as a long term investment/partnership than a quick way to profit from toxic debt.

$1.7 million of the proceeds is directly allocated to funding for Green Leaf Farms. They obviously feel the project will be completed and generate enough revenue to repay the loan. The funding is enough for mCig to complete Phase 1 of the project and for Green Leaf to begin cultivation and generate revenue.