There has been no news about Cannagistics Inc (OTCMKTS:CNGT) in recent days but the stock was in the middle of a vicious downward spiral yesterday and ended up recording declines of as much as 58%.
However, in this context, it might be a good idea for investors to possibly look into a development from earlier on this month. Back on July 1 it was announced that the company inked a Reorganization and Stock Purchase Agreement with Availa Bio Inc and also with Integrity Wellness Group. As per the terms of the agreement, Cannagistics picked up the entirety of the outstanding stock in Integrity Wellness owned by Availa.
The transaction was completed in exchange of 4,400,000 shares of the Series F Convertible Preferred Stock in Cannagistics. In order to complete this particular agreement, Cannagistics took out a loan of $175,000 from Cinnamon Capital Inc.
In exchange for the loan, the company issued Cinnamon Capital with two promissory notes. One of the notes is for $200,000 while the other is for $150,000. It should be noted that there is no applicable interest in any of the two notes and both bore dates of July 6, 2021. It now remains to be seen if the stock can actually mount a recovery today.
On Monday, CNGT stock slumped 58% at $0.0106 with more than 14.25 million shares, compared to its average volume of 1.13 million shares. The stock had moved within a range of $0.0082 – 0.0250 after opening the trade at $0.0241. Over the past 52-week, the stock has been trading within a range of $0.0050 – 0.1070.