Replies to post #7434 on Spiral Toys Inc. (fka STOY)

[WarrenE]

There is nothing wrong with STOY..
Before Lexi-Luu designs INC changed to BITZIO

Bitzio Completes Acquisitions of Lexi Luu Designs and E-Motion Apparel, Implements Management Changes
finance.
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Divestiture of Lexi-Luu Designs, Inc.


On September 15, 2010, the Company acquired Lexi-Luu Designs, Inc. ("Lexi-Luu") in exchange for 2.5 million shares of the Company's common stock. Lexi-Luu manufactures and markets exclusive dancewear for youth.


On July 1, 2014 Mr. Hubert J. Blanchette, CEO of Lexi-Luu, exercised his right to exchange his 2.5 million common shares of Spiral Toys for the return of the Company's interest in Lexi-Luu. This transaction effectively ended the parent-subsidiary relationship of Rocap and Lexi-Luu. As such, all references to Lexi-Luu activity in the financial statements are referred to as discontinued operations. See Note 6-“Discontinued Operations” for further discussion of the discontinued operations of Lexi-Luu.
NOTE 6 – DISCONTINUED OPERATIONS


On July 1, 2014 the Company transferred to Mr. Hubert J. Blanchette, CEO of Lexi-Luu Designs, Inc., (“Lexi-Luu”), 2,500,000 shares of common stock of Lexi-Luu, representing 80% of the issued and outstanding shares in Lexi-Luu. In exchange for the interest in Lexi-Luu, Mr. Blanchette surrendered to the Company 2,500,000 shares of the Company’s common stock.


The Company originally purchased the 2,500,000 shares of Lexi-Luu in 2010 pursuant to a Stock Purchase and Share Exchange Agreement dated as of September 30, 2010 (“the Agreement”). The transfers on July 1, 2014 occurred upon Mr. Blanchette's exercise of an option given him in Section 3.3 of the Agreement, which provided Mr. Blanchette the right to exchange his shares in the Company for the shares of Lexi-Luu if the Company entered into an acquisition transaction that resulted in the dilution of Mr. Blanchette's interest in the Company. The Company completed such an acquisition with its acquisition of Spiral LLC on July 1, 2014.


Upon disposition of Lexi-Luu on July 1, 2014, the net assets and liabilities were removed from the balances of the Company resulting in $369,419 being posted to additional paid in capital of the Company. As these transactions were with a related party, the gain on the disposition was recorded as an addition to Additional Paid in Capital.

Look no further than STOY's affiliated company BTZO, a scam company which was run to the ground by the same two people that control about 36% of STOY, the largest stockholders of STOY

BTZO is now trading at $0.0001 with about 4 billion shares outstanding