Bravatek Solutions Inc (BVTK)

[EducatedInvstr]

Breakdown of Today's 8-K

**Questions are in RED**

On October 10, 2017, Bravatek Solutions, Inc. (the “Company”) entered into a Letter of Intent (the “LOI”) with CrucialTrak, Inc. (“CrucialTrak”),

Letter of Intent: a document containing a declaration of the intentions of the writer.

This is the letter, legally binding the two entities, of which both have been MAP partners, to ...... [see next]



a Texas corporation engaged in providing identification technology that delivers improved security with effective use of servers and workstations for the purpose of identifying those entering a building, office or other secured space,


This is about the biometric scanning etc...... do some DD, pretty cool stuff.



to form a joint venture entity, subject to the execution of definitive agreement(s) formalizing the joint venture, and pursuant to which the parties will use their reasonable best efforts to negotiate in good faith the definitive agreement(s), which among other standard terms and conditions, shall contain the following provisions:

The two companies will need to enter into definitive agreements. They have already been MAP partners, this is now the LOI for the JV. Next will be the JV. Then eventually they will merge. This is just my very honest opinion.

This details the specifics as to how the following conditions must be met.



(1) the joint venture will be owned 65% by CrucialTrak and 35% by the Company,

Notice here "THE COMPANY". No definitive name enclosed. This can be the use of the factual legal term, or it could have been them leaving the documents lean for future (soon?) ease of adjustment. (IMO)

Regardless, good revenue at 35%.




(2) the Company will provide the joint venture a line of credit for up to $5,000,000, repayable with annual interest not exceeding 8%, for the period of 18 months beginning November 1, 2017, and on terms mutually agreeable to the joint venture and the Company,

Good and bad, strict payment terms, additional credit issues. I see this as good, some as bad. The shorts will think "oh this is just another toxic loan", while most longs see the overall picture "oh, the revenue will outweigh the initial cost, by ten fold"




and (3) the joint venture will have a first right of refusal on access to all formally reported projects and the right to distribute CrucialTrak’s products in the government, military and critical infrastructure/key resources market segments.

First Right of Refusal: Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.

In lamens terms, CrucialTrak may refuse their right to distribute if it deems necessary, THIS WILL NOT HAPPEN. It is a calming term. (IMO)




The foregoing description of the LOI and its terms is qualified in its entirety by the full text of the LOI, which is filed as Exhibit 99.1 to, and incorporated by reference in, this report.

Yada yada yada....



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$BVTK