Quarterly report pursuant to Section 13 or 15(d)

SUBSCRIPTIONS PAYABLE

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SUBSCRIPTIONS PAYABLE
9 Months Ended
Sep. 30, 2021
Subscriptions Payable  
SUBSCRIPTIONS PAYABLE

NOTE 10. SUBSCRIPTIONS PAYABLE

 

Subscriptions Payable

On September 30, 2020, the Company entered into a share  exchange agreement (“Cannabis Global Exchange Agreement”) with Cannabis Global to acquire the number of shares of Cannabis Global’s common stock equal in value to $650,000 based on the closing price for the trading day immediately preceding the effective date of the Cannabis Global Exchange Agreement, in exchange for the number of shares of Company common stock equal in value to $650,000 based on the closing price for the trading day immediately preceding the effective date of the Cannabis Global Exchange Agreement.  For both parties, the Cannabis Exchange Agreement contains a “true-up” provision requiring the issuance of additional common stock in the event that a decline in the market value of either parties’ common stock should cause the aggregate value of the stock acquired pursuant to the Cannabis Global Exchange Agreement to fall below $650,000.

On February 26, 2021, the Company entered into the Share Exchange Agreement with ECOX dated February 26, 2021, to acquire the number of shares of ECOX’s common stock, equal in value to $650,000 based on the per-share price of $0.06, in exchange for the number of shares of Company common stock equal in value to $650,000 based on the closing price for the trading day immediately preceding the effective date of the Share Exchange Agreement.  For both parties, the Share Exchange Agreement contains a “true-up” provision requiring the issuance of additional common stock in the event that a decline in the market value of either parties’ common stock should cause the aggregate value of the stock acquired pursuant to the Share Exchange Agreement to fall below $650,000. Based on the value of ECOX shares in the market as of September 30, 2021, the Company recorded a value for additional shares owed to ECOX pursuant to the Share Exchange Agreement of $754,961 as a subscription agreement along with a loss from equity investment of $735,178. As of September 30, 2021, 41,935,484 shares of the Company’s common stock have been issued. As a result, the balance of subscriptions payable as of September 30, 2021 and December 31, 2020 was $754,961 and $670,000, respectively.