Here is why they are increasing the A/S from 500 million to 5 billion.
"On May 12, 2017, QuantumSphere, Inc., a Nevada corporation (the “Registrant”), entered into a Settlement Agreement (the “May 2017 Settlement Agreement”) for $701,015.78 with a certain accredited investor (the “Investor”), dependent upon a court order approving the May 2017 Settlement Agreement. The court order was approved on May 24, 2017 by the 11 th Judicial Circuit Court Florida. The May 2017 Settlement Agreement, in relation to the May 2017 Debt Purchase Agreement mentioned below, allows the conversion of acquired debt by the Investor into Registrant’s common stock at a purchase price determined as a 45% discount to the lowest intraday trading price during the 30 prior trading days from the date that the shares are accepted by the Investor’s brokerage firm."
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring losses from operations from inception and, at March 31, 2017, has $2,001 cash on hand and a working capital deficit of $5,188,842. As of March 31, 2017, the Company had an accumulated deficit of approximately $49.4 million. In addition, at March 31, 2017 the Company is in default on certain of its debt obligations as described in Note 3 below. As of the date of this filing, the Company had $306 on hand.
The lowest intraday is .0008. The discount of 45% is a conversion price of .00044. That debt can/will be converted to 1,593,217,618 shares. Yes, 1.5 billion shares by 1 note holder and that doesn't account for the remaining $800,000 of debt notes in default.
This is great for a quick flip, but these shares are going to be converted.
