Bots Inc (BTZI)

[lesgetrich]

A part of the STNY agreement, mCig agrees not to produce or sell new CBD brands to the public for 2 years. However, there is a huge exemption. Namely CHO...

(ii) Cherry Hemp Oil (“CHO”) – is a bulk isolate supplier and vape pen brand. CHO sales bulk isolate products to retailers and brands for use in their products. As a condition to this agreement CHO will sell bulk isolate at its cost to the Purchaser for use in their products.

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.