Bots Inc (BTZI)

[lesgetrich]

I think it's good that they're using sale of assets to stay afloat, I think it's much better than continuing to convert preferred shares, but let's not kid ourselves about the potential for MCIG when they will likely end up with zero percentage when there's clearly an option in the contract to purchase the remaining 20%.

It would be nice if folks actually read the contract before they make up their mind about how to pan it.

Stony Hill- mCig Sales Agreement

Such option vests on June 30, 2018 and has a term of three years.

Stony Hill can't exercise their option for over a year, and mCig will still own 350,000 STNY shares. Moreover...

Purchaser is hereby granted an option to purchase and otherwise acquire title to the 20% of assets related to the Assets held by Seller for an aggregate purchase price of $200,000 or 20% of the fair market value as mutually agreed upon by Seller and Purchaser, whichever is greater. The Purchaser may deduct the amount qualified under Section 2.4, if applicable, from its payment to Seller.

from Section 2.4...

The Purchaser will issue the number of shares of Stock in the Second Stock Issuance to $300,000 at Market Value, or 150,000 shares whichever is less. Should the value of the Second Issuance on the first anniversary date be greater than $300,000, the additional value shall be a reduction of the Option purchase price for the remaining 20%.

So if the share price is greater than $4 when they exercise the option, mCig get's nothing from the exercise but they will then have 350,000 shares worth $1.4 million or more which can be claimed as an asset on their books and can be converted at any time into cash. This would also indicate that STNY is doing quite well and, as I said, with their low float, the pps would probably appreciate to a value significantly higher than $4/share as the company grows