Bots Inc (BTZI)

[lesgetrich]

mCig still owns CHO, Cherry Hemp Oil. It wasn't included in the deal. In effect, this makes mCig purely a wholesaler of CBD oil to other CBD brands. Consequently, the sale of VitaCBD is really a smart move since it allows mCig to sell bulk CBD without appearing to compete with its wholesale customers. This is a lot more lucrative and cost effective business than trying to sell and market CBD brands.

The hard work of formulating new products, selling, marketing and branding is now in the hands of STNY. In the meantime, selling CBD oil at cost to STNY allows greater profitability from their 20% ownership of the VitaCBD subsidiary and partial ownership of STNY shares.

Paul has indicated that he wants to move the mCig in the direction of a holding company where they will be incubating smaller startups in exchange for an ownership share. STNY is just one example of the type of arrangement that mCig is looking for. mCig has unloaded most of the risk and expense of their CBD product line on a startup company that can devote its full focus to marketing and supplying that product, yet they will still share in the profit of what they hope will be a greater revenue pipeline. There are also some new revenue sources in the works, that we should see revealed shortly, and which will prove to be a lot more lucrative. Stay tuned. The next two weeks should be very interesting.