Cannagistics Inc (CNGT)

[sello]

I was wondering what happened to Rod Gietls work history with Availa Bioscience that used to be listed on LinkedIn. I think I just realized what happened.

First, keep in mind that as of Dec 31st, according to an SEC filing by PBIO, Availa is the parent company of Cannaworx and Skinscience.

"It is acknowledged that certain capital requirements have been satisfied for CWX and Skin Science Labs, Inc., which are wholly owned subsidiaries of one entity, Availa Bio Inc."

The original plan was for Cannaworx and SkinScience to merge with Pressure Bioscience but, again from the Dec 31st filing, the deal became non-exclusive and Availa has given Pressure an ultimatum that they must either convert, pay off, or reach an agreement that Availa accepts in order to close the deal.

"There are additional requirements needed to close a transaction with PBIO, specifically, that certain debt and liabilities as set forth on the balance sheet, be converted, paid-off or otherwise modified, and that a plan be presented to Availa Bio, Inc. as to the going forward costs and expenses of PBIO, which must be completed by PBIO, presented to Availa Bio, Inc. and approved by Availa Bio, Inc. prior to January 31, 2021."


Basically, Availa gave PBIO 30 days to get rid of $12,000,000 worth of debt.

Not happening. Not only does PBIO not have the liquidity to convert that type of weight but these notes are variable, they would literally tear the PPS to shreds. Can a company with $1,000,000 in revenue pay off 12 mill in debt in a month? Of course not, the deal is dead and the terms of the Dec 19th filing superseded all previous LOI's.

"To the extent of any conflict between the terms of this Amendment and the terms of the Binding LOI, the terms of this Amendment shall control."

Sooooo, back to Rob Gietl. I noticed a change to his Linked in page last week. Novi Bioscience was listed where it wasn't before.



The first thing that jumped out was the reference to Novi being a parent company with multiple subsidiaries. That initially grabbed my attention, for obvious reasons, as Novi was established as a subsidiary of Cannagistics on Dec 2nd, not as a parent company. Later in the week though I was looking at the page again and realized it said Rob was CEO of Novi since January 2020. WTH, he wasn't hired as CEO of Cannagistics until June? Then I began wondering where his work history for Availa was. Seems like something one would want on their linked in page.

Today I went back through my screen shots to see if I had saved anything from when I first started looking into all this in November. Turns out I did and what I found was the exact same profile for Availa as Novi...



Same thing. Novi is Availa? Does that mean Cannaworx and Skinscience as well? I think it is a strong indication that this is the case.

The big shareholder here is Jim Zimbler. He holds 6000 preferred shares and at least 72,000,000 restricted common shares. When Unified Cannabis sought to take the shell here, Jim was going to take the Global 3pl business with him and give up control. That didn't happen and when it didn't happen he was given those 72,000,000 shares instead and they have been there ever since.

Well now it looks like another entity is looking to come in and more than likely the deal will be simular, Jim will get the Global 3PL business, which now is likely a full SaaS platform. In exchange, he will surrender those 72 million shares dropping the O/S to around 110 mill as well as surrender the voting shares to the incoming CEO, Jim Morrison, former president of Loreal.

With the incoming revenue of around 26 million give or take, and a share reduction of 72 million it is pretty easy to see why they set the Reg A price at .25. That will be a nice discount.

I would expect that the LOI with PBIO needs to fully expire before this can be official, that would be a Feb 1 announcement.

I don't give advice on stocks just show what I dig up but I can tell you I am holding my shares with a death grip. The merger is just part of what's happening here. The supply chain management for OWPC could be huge in and of itself.

CNGT!!