Bots Inc (BTZI)

[lesgetrich]

It's not apples and oranges. Convertible preferred shares are considered restricted securities under the Securities act since they represent unregistered common shares. They are exempt from the reporting requirements for a Form 4.

Yes, Paul should have probably gifted them back to the treasury and arranged to sell them and pay the expenses thru mCig but there is no regulation prohibiting him from making the sale, even had he used the money for profit which he didn't. The money went back to covering mCig expenses. I made this pretty clear on my post...

All of those "missing" preferred and common shares were unregistered and sold by Paul from his personal shares during 2015 in private placements to cover mCig expenses for consultants and salaries. They were exempt from required reporting on a Form 4 as they were unregistered and sold to qualified investors. New auditors in 2016 advised him to stop this practice of paying company expenses from his personal shares and all preferred transactions have since flowed through the company's financials.

As I also pointed out...

While a million preferred shares were converted to cover mCig expenses since 4/30/2015, Paul has also returned 5 million of his personal preferred shares (representing 50 million common shares) to the treasury, thus more than offsetting all or the company's dilution since it's current inception in 2013. This can hardly be construed as the act of someone looking for a quick profit at the expense of shareholders.