Bots Inc (BTZI)

[lesgetrich]

Sorry cash but there's a few things I disagree with you on...

-MCIG is currently fundamentally overvalued, but no one can be certain how much value was added as political risk decreased & demand increased with the states that legalized MJ. However, over 25 million of this value has been priced into the stock already.

Overvalued on what basis? Book value? Earnings multiple? Projected revenue? Based on book value or PE I'd agree with you. However, one has to also consider the present value of current contracts, especially in construction, by which standard I stick with my estimate that anything between $.12 and $.24 pps is rational.

-MCIG still has a (6.8 mil)+ accumulated deficit and will take 680x the net profit last quarter before shareholder's receive any retained earnings.

The accumulated deficit was totally offset by additional paid-in capital, largely the result of Paul returning his shares to the treasury as payment for debts. The company has zero debt so nothing needs to be repaid. So all profits hit the bottom line as additions to stockholder equity. Your claim is misleading.

-The earnings/revenue PR'd last week has not been filed via 10-Q. What was the O/S dilution impact last quarter via stock compensation or preferred share conversions?

-MCIG continues to finance operations by issuing common stock and converting preferred shares into common stock that dilutes shareholders.

Dilution over the past three years has been minimal. mCig started trading as an MJ company on September 30, 2013 with roughly 270 million shares outstanding (OS). Today, it has roughly 332 million shares OS as of 9/28/16. Those shares were distributed gradually over time at market value and most have already been sold into the market. Even if they had been sold all at once, which they weren't, the total of 62 million shares issued represents about five days of trading at current volumes. Moreover, as per the 10-K, all shares distributed in the past year were restricted...

mCig 10-K

Recent Sales of Unregistered Securities

In the year ended April 30, 2016, we issued an aggregate of 25,552,599 shares of common stock valued at approximately $927,493 for professional services. In addition, the Company issued 2,500,000 common shares for investments in the amount of $67,500 as final payment for Vapolution, Inc.

The issuance of such shares of our common stock was effected in reliance on the exemptions for sales of securities not involving a public offering, as set forth in Rule 506 promulgated under the Securities Act of 1933, as mended (the “Securities Act”) and in Section 4(2) of the Securities Act, based on the following: the investors confirmed to us that they were “accredited investors,” as defined in Rule 501 of Regulation D promulgated under the Securities Act and had such background, education and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the securities; (b) there was no public offering or general solicitation with respect to the offering; (c) the investors were provided with certain disclosure materials and all other information requested with respect to our company; (d) the investors acknowledged that all securities being purchased were “restricted securities” for purposes of the Securities Act, and agreed to transfer such securities only in a transaction registered under the Securities Act or exempt from registration under the Securities Act; and (e) a legend was placed on the certificates representing each such security stating that it was restricted and could only be transferred if subsequent registered under the Securities Act or transferred in a transaction exempt from registration under the Securities Act.

Also, from the 10-Q...

All of the outstanding shares of common stock held by the present officers, directors, and affiliate stockholders are "restricted securities" within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted shares, these shares may be resold only pursuant to an effective registration statement or under the requirements of Rule 144 or other applicable exemptions from registration under the Securities Act of 1933 and as required under applicable state securities laws. Rule 144 provides in essence that a person who is an affiliate or officer or director who has held restricted securities for six months may, under certain conditions, sell every three months, in brokerage transactions, a number of shares that does not exceed the greater of 1.0% of a Company's issued and outstanding common stock.