| Organization and Description of Business | NOTE 1 – ORGANIZATION AND DESCRIPTION
OF BUSINESS Organization and Description of Business Cannagistics, Inc. (Formerly FIGO Ventures,
Inc., formerly Precious Investments, Inc.) (‘The Company’) was incorporated under the laws of the State of Nevada on
May 26, 2004. The Company was an Exploration Stage Company with the principle business being the acquisition and exploration of
resource properties. The Company had allowed its charter with the
state of Nevada to be revoked by the Secretary of State for failure to file the required annual lists and pay the required annual
fees. Its last known officers and directors reflected in the records of the Secretary of State were unresponsive or stated they
were no longer involved with the Company. The purported replacement officers and directors were unresponsive. On September 14, 2012, NPNC Management, LLC
filed a petition in the Eighth Judicial District Court in Clark County, Nevada and was appointed custodian of the Company on January
15, 2012. On October 24, 2012, the interim board authorized
the sale of 55,000,000 (2,200,000 split adjusted) shares of common stock for $6,000 to NPNC Management, LLC, in a private placement
transaction exempt from the Securities Act of 1933, as amended, pursuant to section 4(2) thereof and the rules and regulations
promulgated there under. On March 1, 2017, the Company then entered
into a joint venture agreement with Eddeb Management (“Eddeb”). The purpose of the joint venture is to build a fund
for the purpose of trading in precious gems, notably, colored diamonds. On November 16, 2017, the Company entered
into an Agreement of Merger and Plan of Reorganization (the “Merger Agreement”) with American Freight Xchange, Inc.,
a privately held New York corporation (“American Freight”), and Shipzooka Acquisition Corp. (“Shipzooka Sub”),
a newly formed wholly-owned Nevada subsidiary of Precious Investments, Inc. In connection with the closing of this merger transaction,
Shipzooka Sub merged with and into American Freight (the “Merger”) on December 5, 2017, with the filing of Articles
of Merger with the Nevada Secretary of State and Certificate of Merger with the New York Division of Corporations. The transaction resulted in the Company acquiring
Subsidiary by the exchange of all of the outstanding shares of Subsidiary for 1,000,000 newly issued Series C Preferred shares
of stock, $0.001 par value (the “Preferred Stock”) of Parent which have conversion and voting rights of 72.5 votes
for each share, representing approximately 90.2% of the voting rights For accounting purposes, the transaction was
treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change
in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial
statements have been prepared to reflect the assets, liabilities and operations of American Freight Xchange, Inc. exclusive of
Precious Investments, Inc since all predecessor operations were discontinued. As part of the transaction, amounts due to
former officers were forgiven, with the balances recorded as Contributed Capital. For equity purposes, accumulated deficit shown
are those American Freight Xchange, Inc. Shipzooka Acquisition Corp. is a dormant corporation. On July 23, 2018 the Company amended the name
of its subsidiary, KRG Logistics, Inc., to Global3pl, Inc. (an Ontario corporation). On September 4, 2018 the Company incorporated
Cannagistics, Inc., in the province of Ontario, Canada. This is intended to be a possible new line of business for the Company
but is dormant at this time. On April 17, 2019, we filed Articles of Merger
with the Secretary of State of Nevada in order to effectuate a merger with our wholly owned subsidiary, Cannagistics, Inc. Shareholder
approval was not required under Section 92A.180 of the Nevada Revised Statutes. As part of the merger, our board of directors authorized
a change in our name to “Cannagistics, Inc.” and our Articles of Incorporation have been amended to reflect this name
change. On September 26, 2019, the Board of Directors approved the registered
spinout of its Global3pl, Inc., (a New York corporation) (“Global3pl”) subsidiary. Global3pl is a logistics technology
provider, along with the American Freight Xchange and UrbanX Platforms that have been under development by the Company. For the spinout, the Board of Directors
declared a stock dividend for all shareholders, with a record date of October 10, 2019. For every 50 shares of common stock of
the Company, all shareholders of record on the record date will receive one share of common stock in Global3pl. Global3pl planned
to file a registration statement as part of its raise of capital to complete the development of American Freight Xchange, a North
American freight broker-driven 3pl network to handle the management of long haul LTL (less than truckload), and specialty freight
(white glove) services and Urbanx, a North American network of rush-messenger local trucking services for forward and reverse
last mile delivery (including white glove service). However, on March 18, 2020, the Board of Directors resolved
to reverse its prior decision to spin-off Global3pl, Inc. and to instead continue with the development of its logistical operations.
The reversal came in the midst of performing the year-end audit. Because the audit was delayed, the Company continued its investment
in time and money in the development of the platforms mentioned. The decision to retain Global3pl also resulted from the design
to establish a Malta Project, and the change of focus to Supply Chain Management. With this project at the forefront, the board
determined that continued financial support for Global3pl was warranted. The Global3pl and AFX software and operating system are
expected to serve as the platform to which the Canangistics Supply Chain Management and Operating System will be based. Therefore,
the board decided to retain Global3pl and not spin off the company so that it may develop our SAAS (Service as a Software) system.
Despite the record date set for the spin-off on October 10, 2019, there were no shares of Global3pl tendered to the shareholders
of Cannagistics to complete the spin off transaction. Effective October 1, 2019, the Company suspended operations of its
subsidiary Global3pl, Inc., formerly known as KRG Logistics, Inc., (an Ontario corporation), suspended future operations related
to the operations in Mississauga, Ontario. It is in the process of collecting accounts receivables still due and working on a plan
to pay its payables. It has entered into an agreement with 10451029 Canada Inc., d/b/a Reliable Logistics, for the assignment and
of the assets of Global3pl, Inc., (an Ontario Corporation). The transaction was completed on November 6, 2019. The Company anticipates
formally liquidating and dissolving the subsidiary in the next fiscal Quarter. This is a separate corporation from Global3pl, Inc.
(A New York corporation). Current Projects in Development Malta Project The Company plans to become a complete end to end supply chain
management company focused on serving the pharmaceutical, OTC medical, nutraceutical, cosmetic, and CBD/Hemp-related (and other)
product industries as a gateway for products to penetrate the USA, E.U., Colombia and Canada marketplace through GMP certified
manufacturing facilities in Baton Rouge Malta, Bogotá, and Toronto. Currently, we have no GMP certified manufacturing facilities
in these areas or anywhere. We are developing plans to source production, or to joint venture with existing facilities, or potentially
to acquire or build GMP Certified facilities in those areas. These developing plans include seeking out already existing facilities
currently in operation, either already GMP Certified or willing to become GMP Certified, as well as preliminary discussions with
potential joint venture partners. We are also in the preliminary planning stages regarding the possibility of obtaining the license
to operate in Malta. While no specific plans have been finalized, the Company is continuing to pursue all options. Combining the
production through these facilities and compliance services with our proprietary information and transactional SAAS (Software
as a Service) platform (being developed by Corengine for our Global3PL, Inc. subsidiary), Cannagistics, Inc. plans to offers its
clients a true turn-key supply chain information and management platform. With the current situation related to the COVID-19 pandemic,
our developmental plans to seek out existing GMP facilities have been delayed by the inability to travel. Regardless, we have
been able to conduct some due diligence in our search and we plan to conduct site visits and other due diligence once travel is
permitted. The Company believes as the ability to travel once again becomes possible, specifically including internationally travel,
that our above plans can be better implemented in locating suitable facilities. To
serve the EU market, we would like to have a GMP facility in Malta that will focus on
cosmetics, pharmaceutical, nutraceutical or “bioceutical” and medicinal products
for our clients, and plans to provide end to end tracking, manufacturing and testing.
We plan to have this Malta lab cater to customers in the EU. We also plan to have other
facilities that will cover our target customers in the US, Canada and Columbia in Baton
Rouge, Toronto and Bogotá, respectively. Initially, the products we intend to focus
on are skin care and anti-aging creams and other over the counter products, and subsequently seeking to add products with hemp-based
application. Our services would include the production, under their requirements, distribution and handling of orders as a third-party. We have discussed the plan to create the
Malta facility and other facilities with potential customers for products manufactured at these facilities. We have received positive
feedback on the initiative and commitments from at least two clients to which we plan to sell products. Manufacturing areas description: We have no manufacturing plant or GMP facilities
at the present time. As we continue our search to find suitable facilities, we believe that we will need to have the following
areas for the production process, which will implement the safety protocols required for the project to be developed. Area of receipt: Area of the property that
has been destined for the receipt of the raw material and supplies that arrives for the manufacturing process. Raw material area: Warehouse equipped with
the security measures required for the storage of the raw material. Production and manufacturing area: Sector where
the manufacturing process will be carried out in which the transforming plant will be in order to obtain the final product. Reagents and supplies area: Warehouse equipped
with the security measures required for the storage of reagents and supplies. Solid waste area: Sector destined for the storage
of solid waste produced during the manufacturing process. Finished product area: Warehouse equipped with
the security measures required for the storage of the finished product. Dispatch area: Sector from where the process
of dispatch and delivery of the finished product to its final recipient will take place Administrative area: Sector of the factory
where administrative, accounting and security activities will be developed. Global3pl, Inc (New York Corporation) Global 3PL, Inc. (NY) |
