Replies to post #32174 on Transportation and Logistics Systems Inc (TLSS)

[M Bloomberg]

Funny I do too and I see their trucks literally everywhere. Maybe you don't see them because your stuck in your house lol. Anyway we can argue it, but I know for a fact that others got the same letter - I know someone who has his own truck and drives under the DSP program. He got the same thing. It states the don't "INTEND" to renew the "in-force agreement". Doesn't mean they don't intend to renegotiate for better terms.

[TheFinalCD]

please post the actual statement

[OMOLIVES]

To be fair...they stated that they would seek arbitration on a settlement. Their argument is centered on contract length. There won't be a new contract...and apparently they are on a trial run with another.

They can not..and will not... get past their debt load unfortunately. Over 70 million shares were issued for the ratchets(warrants)...much of the debt load has defaulted ...as a result...said principal has increased by 30% ..as such...the tell' is below.

Page 47:

The Company’s trading price quoted on OTC Pink market fell from $3.50 per share on January 8, 2020 to $0.01 on April 21, 2020. This drop, together with anti-dilution protection features contained in the August 2019 Notes and August 2019 Warrants that were triggered upon the issuance of convertible debt beginning in January 2020, caused the conversion prices of most of the Company’s outstanding notes and the exercise price of many of the Company’s outstanding warrants, to fall to a fraction of a penny. Beginning in February 2020, note holders began converting the outstanding principal of their notes into substantial quantities of shares of the Company’s common stock. During the period from February 25, 2020 to June 22, 2020, we issued 417,363,999 shares of our common stock in connection with the conversion of convertible notes payable of $2,068,131, accrued interest and default interest of $473,402, and fees of $5,000. The conversion price was based on contractual terms of the related debt. Additionally, the Company issued 70,203,889 shares of its common stock upon the cash-less exercise of warrants. Consequently, the total number of shares of common stock outstanding has increased from 11,832,603 on December 31, 2019, to 499,900,491 on June 26, 2020.



These anti-dilution protection features only provide for one-way adjustment, therefore, even if the Company cures any events of default, and the trading price increases, the conversion and exercise prices of the affected notes and warrants will remain a fraction of a penny. As a result, the Company has made commitments to shareholders, convertible note holders and warrant holders to issue, or keep available for issuance, large quantities of additional shares of common stock. The Company does not currently have sufficient authorized common stock to satisfy all of such commitments.

And....

ITEM 3. DEFAULTS UPON SENIOR SECURITIES



The information contained in “Note 6 - Convertible Promissory Notes Payable and Notes Payable” is incorporated by reference to this Part II, Item 3.



On January 30, 2020, due to the default of the January 2020 August 2019 Notes Amortization Payments in the amount of approximately $224,397, the August 2019 Notes were deemed in default. Accordingly, the outstanding principal balance on date of default increased by 30% which amounted to $723,985, default interest accrues at 18%, and the default conversion terms apply.



In February 2020, due to the default of the February 2020 October 3 Note Amortization Payment in the amount of approximately $15,100, the October 3 Note was deemed in default. Accordingly, the outstanding principal balance on date of default increased by 30% which amounted to $50,000, default interest accrues at 18%, and the default conversion terms apply.



In May and June 2020, due to the default of a May 2020 and June 2020 Amortization Payments, the Fall 2019 Notes, in the amount of approximately $110,000, was deemed in default. Accordingly, default interest accrues at 18% and the Fall 2019 Notes became due on the respective date of default.



Due to the default of amortization payments due on our August 2019 Notes and other notes as discussed above, the 2020 Notes were deemed in default. Accordingly, the outstanding principal balance on date of default increased by 30% which amounted to approximately $613,800, default interest accrues at 18%, and the default conversion terms apply.