Artificial Intelligence Technology Solutions Inc (AITX)

[fromtheuk]

Question

So someone explain this situation for me. Can this happen? Can rad separate from aitx? If they do wouldn’t aitx technically assume the debt? Would they be able to file bankruptcy and screwing us all over and keep going with rad as a separate company?

Answer

Yes, but they can’t just give it away, the normal way to do this is spin off the company which will assume all assets / IP etc, then issue a credit note with a long payment. Let’s for fun say $15 million. I assume longer term this is what RAD-M is for

So AITX would be left with an idle business and a piece of paper with a large number on it. Normally the parent is just left to quietly die ( delisted etc ) and the note fades into obscurity. However in AITX case, it’s purpose to be is to pay note holders.. it would almost certainly RS / change ticker and take on another fake company.

It would assume the toxic debt ( which no real company would ever do ). It would PR it’s business and report the $15 million to make its finances look better. It would gain a whole new set of investors which would spin the wheel for the next couple of RS cycles. At no point would the $15 million ever be repaid.