CBAI obtained an equity funding arrangement with Optimus worth $7.5M. It involves Preferred Shares. The S1 which describes the deal in detail and can be found under "filings" on OTCBB now awaits the approval of the SEC. They have had it about a month now so hoping it will be approved soon. None of the money is available until it's approved. The money will be used to fund ongoing cash needs including acquisitions. So perhaps once it is approved Matt the CEO could have an acquisition waiting for the S1 to close. It also involves warrants. Below is something I previously posted explaining how the warrants work for this deal. Hope all this helps.
Zero shares have been released to Optimus. These are warrants and Optimus can buy anytime up to five years from when Matt takes some money. The price (strike price) is set based on the closing price the day before he requests funds from Optimus. So lets say Matt requests some money. Warrants are issued to Optimus based on the prior days closing price and using the formula in the S1 to determine how many warrants are issued. From that day forward Optimus has five years to actually buy the shares (exercise the warrants) from Matt at the stike price set based on the amount of funds requested. Optimus won't exercise the warrents turning them into common shares until they are ready to sell and they surely wouldn't buy them until the price is a lot higher than the strike price that was set. And don't forget, if the share price goes up to say .02 before Matt takes any money, then the number of warrants go way down. (1.5B shares for $7.5M at a share price at .007 from the S1. But Optimus would only get 500M shares with the price at .02. And only 100M shares with the share price at .10. Just to give you the math
News 
Market Data 
Discover 
AI
