GBT Technologies Inc (GTCH)

[Overwatch]

Can someone here make a comment re the last 8K here please

Item 1.01 Entry Into a Material Definitive Agreement
On August 8, 2023, Bannix Acquisition Corp. (“Bannix”) entered into a Patent Purchase Agreement (“PPA”) with GBT Tokenize Corp. (“Tokenize”),
which is 50% owned by GBT Technologies Inc. (“GBT”), where GBT provided its consent, to acquire the entire right, title, and interest to intellectual property
including patents and patent applications providing a machine learning driven technology that controls radio wave transmissions, analyzes their reflections
data, and constructs 2D/3D images of stationary and moving objects.
The closing date of the PPA will be immediately following the closing of the acquisition of EVIE Autonomous Group Ltd. (“EVIE”) by Bannix. The
purchase price to be received by Tokenize is set at 5% of the consideration that Bannix is paying to the shareholders of EVIE. The Business Combination
Agreement sets the consideration to be paid by Bannix to the shareholders of EVIE at $850 million and, in turn, the consideration in the PPA to be paid to
Tokenize is $42.5 million. If the final purchase price is less than $30 million, Tokenize has the option to cancel the PPA. In accordance therewith, Bannix
agrees to pay, issue and deliver to Tokenize, $42.5 million in Series A Preferred Stock to Tokenize, which such terms will be more fully set forth in the Series A
Preferred Stock Certificate of Designation to be filed with the Secretary of State of the State of prior to the closing date. The Series A Preferred Stock will have
stated value of face value of $1,000 per share and is convertible, at the option of Tokenize, into shares of common stock of Bannix at 5% discount to the VWAP
during the 20 trading days prior to conversion, and in any event not less than $1.00. The Series A Preferred Stock will not have voting rights and will be
entitled to dividends only in the event of liquidation. The Series A Preferred Stock will have a 4.99% beneficial ownership limitation.
Series A Preferred Stock and the shares of common stock issuable upon conversion of the Series A Preferred Stock (the “Conversion Shares”) shall be
subject to a lock-up beginning on the closing date and ending on the earliest of (i) the six (6) months after such date, (ii) a change in control, or (iii) written
consent of Bannix (the “Seller Lockup Period”)
On December 18, 2023, Bannix and Tokenize entered into Amendment No. 1 to the PPA. Per the amendment, Bannix and Tokenize agreed that the
shares of common stock to be issued upon conversion of the Series A Preferred Stock will not exceed 19.99% of the aggregate number of shares of common
stock issued and outstanding as of the closing of Bannix’s acquisition of EVIE (such maximum number of shares, the “Exchange Cap”) unless Bannix’s
stockholders have approved the issuance of shares of common stock upon conversion of the Series A Preferred Stock pursuant to the PPA in excess of the
Exchange Cap in accordance with the applicable rules of the market or exchange on which Bannix’s shares of common stock trade.
The foregoing description of the terms of the above transactions do not purport to be complete and are qualified in their entirety by reference to the
provisions of such agreements, the forms of which are filed as exhibits to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are filed with this Form 8-K:
Exhibit Number Description
10.1 Amendment No. 1 to Patent Purchase Agreement dated August 8, 2023 between GBT Tokenize Corp. and Bannix Acquisition Corp