Bots Inc (BTZI)

[lesgetrich]

All in all, insiders got paid at least $3 mil w/ the purchase of CR(APP)

LMAO Earlier, you were arguing that nobody but insiders benefited from Paul spending $3 million to purchase 420Cloud. Now we see that the entire $3 million was returned to mCig in shares of OBITX stock. From the S-1...

OBITX S-1

The Company was a wholly-owned subsidiary of MCIG until November 1, 2017. On November 1, 2017, the company converted $3,043,285 of its outstanding debt owed to MCIG into 500,000 shares of common stock and 100,000 shares of Series A Preferred stock. This conversion of debt was created when MCIG assigned the software it acquired in March, 2017, and has continuously funded its further development. The average price of an underlying common stock for the stock purchase was $0.5533 per share.

...as for...

Looks like insiders received:
1) Salary of $80k+/year with option to purchase shares
2) Received common shares
3) Received preferred shares

And this does NOT include the preferred shares (worth ~$3 Mil)that went to MCIG; where MCIG can further issue to insiders without telling anyone.

The S-1 is completely transparent with regard to who owns OBITX shares. No insiders own preferred shares. There are only 100,000 Preferred shares issued and they are all owned by mCig (translation, mCig shareholders). Once more, the $3 million warrants are priced at $1/share, which means if exercised, OBITX will raise $3 million and the pps will be over $1...





mCig didn't have to issue a dividend. mCig shareholders would have still benefited from the increasing value of OBITX shares. mCig gets to claim 49.1% of OBITX earnings on its Financials as revenue. OBITX, in the meantime, still can claim 100% according to GAAP accounting regs.

Finally, all share transactions by insiders need to be reported and Rule 144 prohibits them from selling any shares for 6 months and only allows them to sell 1% of OS shares during a three month period. From the S-1...

Rule 144


In general, under Rule 144 as currently in effect, a person (or persons whose shares are aggregated), including an affiliate, who beneficially owns “restricted securities” of a “reporting company” may not sell these securities until the person has beneficially owned them for at least six months. Thereafter, affiliates may not sell within any three-month period a number of shares in excess of the greater of 1% of the then outstanding shares of common stock.


Sales under Rule 144 by our affiliates also will be subject to restrictions relating to the manner of sale, notice and the availability of current public information about us and may be effected only through unsolicited brokers’ transactions.


Persons not deemed to be our affiliates who have beneficially owned “restricted securities” for at least six months but for less than one year may sell these securities, provided that current public information about us is “available,” which means that, on the date of sale, we have been subject to the reporting requirements of the Exchange Act for at least ninety days and are current in our Exchange Act filings. After beneficially owning “restricted securities” for one year, our non-affiliates may engage in unlimited resales of such securities.


Shares received by our affiliates in the spin-off or upon exercise of stock options or upon vesting of other equity-linked awards may be “controlled securities” rather than “restricted securities.” “Controlled securities” are subject to the same volume limitations as “restricted securities” but are not subject to holding period requirements.

Debunked Again!