I don't see any Cannalytics information. I see it in there as a source of revenue, but it doesn't say what, if any, revenue comes from Toler's Cannalytics. Where would that be??
Also, this massive black hole expired in March. It seems like a farce. Rose Capital is basically our CFO, so he basically bent shareholders over as I see it:
On March 1, 2019, the Company entered into a $1,500,000 Secured Convertible Promissory Note (“Note Nine”) with Rose Capital Fund I, LP (the Related Party Holder”). A Managing Member of the Related Party Holder is also a Director of the Company. The Related Party Holder provided the Company with $1,475,000 in cash proceeds, which was received by the Company during the period ended September 30, 2019. The additional $25,000 was retained by the Related Party Holder for legal bills for the transaction. Note Nine will mature on March 1, 2020 and bear interest at a rate of 25% per annum, payable by the Company half in cash and half in kind on a quarterly basis. The principal balance of Note Nine is convertible at the election of the Related Party Holder, in whole or in part, at any time or from time to time, into the Company’s common stock at the lower of $0.90 per share or a 30% discount to the Company’s 30-day weighted average listed price per share immediately before the date of conversion
That's a big one! So basically, buy newly issued stock at a 30% discount to whatever it is at any given day, and sell it at market. So it dilutes shareholders, and the lower the price falls, the more it dilutes. That is TOXIC. No matter what spin they want to put on it. That big screwing is over I think ,but there are others for at least another year. But that was a big one. What would have been fair would have been something like what NROM got from Corbel Capital. Probably a conflict of interest for the CFO to lend his own company capital and approve of the terms himself. That seems like Helix Security monitoring Helix Bank Robbers Incorporated. Which is very similar in what you see in the Golden State Seriel killer that eluded investigators for over 50 years. But was finally caught through genetic profiling last year or so. And it turns out, he was a police officer investigating his own crimes back in the '70s.
These kinds of things Shouldn't even be legal if you ask me. But here we are, and this is probably the best explanation right there.
The rest of the financing is a big convuluted mess that just needs to be consolidated and simplified with no more death spiral toxic stipulations. I wouldn't say Scott Ogur or Zac should have gained anyone's trust here. I don't feel like they shoot straight, as in the case of Vincente Fox. But I'm here for the ride and the adventure nonetheless with my 20,000 shares. We'll see how the dust settles.
There are also these subsequent events
On April 13, 2020, the Company executed a settlement agreement in the matter of Baker and Gill v. Helix TCS et. al. whereby the Company will pay $400,000 plus interest to the named plaintiffs, the class members, and the counsel of the named plaintiffs. Such payments will be made on the later of (1) Sixty days after Exhaustion of the Federal Appeal or (2) Sixty days after court approval of the settlement agreement.
I htink that's the class action labor dispute alleging unpaid overtime. Just be honest and pay your people. This isn't Texas with bad labor laws. And even if it was, do what's right. Glad that's behind them and over and done with. You can drop cash down to $200,000 now.
On April 3, 2020, April 13, 2020, April 23, 2020, April 29, 2020, and May 12, 2020, the holder of a 12% convertible promissory note issued by the Company elected its option to partially convert $25,000, $30,000, $30,000 , $30,000, and $35,000 in principal of the convertible note into 316,857, 395,778, 395,778, 360,577, and 409,836 shares of the Company’s common stock.
Oh, that's swell. With such a low stock price, it takes a lot of shares to convert. Add another 1.5M shares of dilution. Those are all being dumped on our heads, all the time. So, are legitimate gripes here. You would feel right about wanting to string them up. I wouldn't run to their defense. And what they've done to you, they've done to everybody they acquired. And they've all been dumping too, except for the guys at Amercanex I think because those were restricted shares if I recall ccorrectly. So, Steve Janec can be mad with y'all. It is time to have insiders in there angry on the board.
And then on April 22nd, they authorized more shares which we already discussed for future acquisitions.
There is still one pending case left out there to my recall. And that was an alleged partner of Greenway Tree Whatever it was called incorporated. That is basically Amercanex, and somebody claiming to have been a partner that got cheated out of the deal. Steve Janec can be even that more mad.
So, anyway, there's that.
