Leet Technology Inc (LTES)

[Sobek]

Ok, been a crazy day but finally had time to go over the 8-K. Just remember I'm not a professional and have less experience with these types of transactions though they are pretty cut and to the point. That being said, this is what was promised from the PR and apparently by the date, they went right from pitching Doheny the share reduction to his attorney's to start these filings then waited until the filings were completed until they released news. That really shows they meant business and had a plan and a backup plan already in place before making any announcements.

So obviously the preferred are equivalent to the current authorized share count divided by what the company owned the CEO. That's how they came to .02537 as the purchase price while granting the CEO full rights over the company. Also the shares aren't convertible so they don't pose a threat to the current common share structure. All they do is give the man the security he's entitled to as founder to maintain control over his company w/o him having to increase the outstanding share count which, is 100% in our favor. It also adds an extra layer of security without the headache or costs associated with anti takeover shareholder rights to discourage a hostile takeover.

In exchange for the preferred, he's agreed to acknowledge the $25k the company owed him has been paid in full and the company acknowledges the debt has been satisfied. As far as what the price tag says, it's not a bargain or deal, it's just how the numbers jive. For example if the company owed him $102,148 then the purchase price would of worked out to .10148 a share, that's all. Remember the main objective here was to get the ball rolling for the share reduction which I believe 100% they will follow through on. They just needed a transaction for it and his back pay was what they used.

Now also as part of the agreement, Mr. Wainer agreed to have 8 million of his personal common shares locked up until the Doheny Group is paid in full. We can safely estimate those are the same shares he's going to retire once the debt to the lender is paid. That will also get the outstanding share count down to 10 million which after kicking it around over and over, is what I estimate is where it needs to be.

So bottom line here is the company made a promise and is following through. And by getting the controlling preferred out of the way which took a little over a month to complete, they're halfway there to complete the share reduction. The lockup as part of the deal is their way of showing us that they are indeed fully committed to getting the o/s down to 10 million.

It's actually kind of exciting. True it ain't like some of these other OTC stocks out there that run up a kazillion percent then fall 99% in the same month, but then again none of those companies have the potential to be around 5 or 10 years from now either like we do here.

If the company continues like they have been over the next few years and continues growth like we've seen, we're looking at real long term investors wanting this in their portfolios or their customers accounts they manage for a long time. That means we're looking at up listing to like the NASDAQ or NYSE w/o having to issue additional shares or a reverse split and once up listed, we could see numerous forward splits to meet the demand the stock will eventually have. And it's those splits where we have the real potential to turn say $20k into $10's of million by the time the BAIID market starts to peak out in 2020. Worth the wait and risk if you ask me.