EVIO Inc (EVIO)

[GangstaRIB]

Yes very confusing deal.

I read through the entire 8-k, which for whatever reason, didn't make it to ihub but is on OTC markets: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12272629

Please feel free to take a whack at it if you haven't already. I was hoping others from the board could help translate.

What I posted is the only rational answer I could come up with. Long story short:

- EVIO gives 500k to palliatech
- EVIO now holds $1M loan that phytotech owes palliatech inc. ($1M liability)
- Phytotech now owes EVIO $1.3M by next year (secured by phytotech assets)

Sure it may seem like EVIO is able to make $300k in one year and a 33% return in a year is pretty good, but EVIO spends that kind of money taking convertible notes of it's own out. They are hurting for capital and in some cases are paying 100% interest in equity in 6 months!

So... Only answer I could come up with is phyto was in a contract with Pallia. EVIO bought out the contract. Phyto owed Pallia 1M now EVIO owes Pallia $1M and phyto owes EVIO $1.3M. Labs have been going for $1M-1.5M so I can't see how phyto would be able to get out from under that debt in a year if they didn't pay a dime on it for 3 yrs. No way Phyto is clearing $1.3M per yr after all of their bills are paid if EVIO isn't clearing that with 5 labs.

I could be way off here... that's why I post I like to hear what anyone else thinks about the deal. It seems really whimsical, but I also see Mitchell Silberberg & Knupp LLP on the deal. They are acquisition specialists.

Also the MA lab came from Palliatech.

I just don't see this as a good deal unless EVIO will own the lab outright in the future.

I'll see if Will gets back to me I may have exceeded my email quota with him today... lol