Defense Technologies International Corp (DTII)

[Poco Parvenu]

If one reads the 8K and 10Q, no surprise I&O going up.

From DTII 8K July 29, 2022

Item 3.02Unregistered Sales of Equity Securities.

On July 29, 2022, Defense Technologies authorized a settlement of certain debts of the company, consisting of notes and accounts payable valued at $2,979,829, in exchange for the issuance of 716,552 shares of Defense Technologies convertible Series B Preferred Stock to a total of eight persons. The company has entered into debt settlement agreements with each of the eight persons.

Series B Preferred Stock is non-voting and each one share is convertible into ten shares of DTII common stock. The Preferred Stock exchanged for debt is to be held in book-form by the transfer until such time as the shares are converted into DTII common stock. Each individual receiving the Preferred Stock has agreed to limit the number of shares of common stock they can acquire upon a conversion of the Preferred Stock at any one time. Accordingly, the individual is permitted to convert only a number of Preferred Stock that will result in receiving a maximum of 4.99% of the total issued and outstanding DTII common shares following conversion. Subsequent conversions will also be limited so that the individual does not exceed the 4.99% maximum holding.

Issuance of the Series B Preferred Stock is being made in a private transaction to persons familiar with the company’s business, pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933. Shares of Series B Preferred Stock are deemed to be restricted securities as defined by the Securities Act.

And then from DTII 10Q dated January 31, 2023

On March 22, 2022, the Company entered into a one year convertible promissory note for $91,350 with Red Road Holdings, LLC. The note has an OID discount of $12,600, bears interest at an annual rate of 9% and is convertible into shares of the Company’s common stock at 80% of the lowest trading price 15 days prior to conversion. The note at initial issuance using the Black Scholes model with computed volatility of 338% Discount rate of 0.25%, The Company recorded a debt discount of $91,350 at the inception of the note. As of January 31, 2023, the balance of the notes was $61,350, net of discount plus interest.

Using simple math, one can figure out that Red Road still has about $40K left to convert. And then there are those 'eight persons' who can also convert, so yes, I&O is going up and not a surprise in the bunch.

GLTA #DTII