Ever question why they renegotiated that agreement with themselves?
What part of SBFM's balance sheet allowed them to financially justify this purchase price? Secondly, where would the money come from? They have reported year over year, they operate at a loss, no income.
But let's sell ourselves something we already own as a private company (Advanomics) We paid 50K for, then sell it to ourselves for over millions of dollars?! Where would that money come from?!! Even these morons got too greedy,
The aggregate consideration specified in the two original Patent Purchase Agreements created debt obligations to us of $17,142,499, including annual and quarterly payments totaling $640,000. It was believed that purchase of the Patents would facilitate our ability to obtain the funding necessary to complete the development and Food and Drug Administration (“FDA”) approval process for Adva-27a. However, it became apparent that the burdensome financial obligations imposed by the terms of the original Patent Purchase Agreements were not conducive to our obtaining such financing, to the mutual detriment of both ourselves and Advanomics. Accordingly, we executed the aforesaid amendments to the original Patent Purchase Agreements which provided for (i) reduction of the purchase price of the Patents from $17,142,499 to $618,810, the Advanomics book value of the Patents, (ii) elimination of all cash payments obligations, and (iii) automatic convertibility of the new promissory notes for the new purchase price into an aggregate of 321,305,415 shares of Common Stock upon our increasing our authorized capital such that this number of Common Shares can be issued.
A traditional business transaction would have never even gotten this far. Luckily for them, they are buying and selling to and for/from themselves, so they will always agree they are favorable. It's a win win.
