Cannagistics Inc (CNGT)

[Slojab]

3,957,757 a/o Nov 11, 2015

5,803,617 a/o April 20, 2016.

NOTE 3 – PREPAID EXPENSES

On October 1, 2015, we entered into a Memorandum of Understanding (“MOU”) with Gulf Peal Ltd. and goNumerical Ltd. (the “Consulting Firms”) in which each of the Consulting Firms shall receive 500,000 shares of common stock upon meeting certain milestones, with 250,000 shares of common stock being earned upon execution of the MOU. During the quarter ended January 31, 2016, we issued a total of 1,000,000 shares of common stock valued $2,790,000 to the consultants related to the agreement.

As of January 31, 2016, no additional milestones have been met and as such the Company has included the value of the 750,000 unearned shares amounting to $2,092,500 as a prepaid expense until such time the milestones are met and the shares are earned.

The bitgem gambit really cost shareholders.

We recently conducted a small offering and raised roughly US$30,000. We will need to raise US$10 million in the issuance of securities in order to grow our business. Upon securing funds, we plan to execute on a 12-month business strategy, which we hope will see a positive cash flow in the years to follow

Professional fees $718,245