SmartMetric Inc (SMME)

[Bale out]

Duke,

I am wondering if you have an opinion on the below post by Penny Hopeful. I would sincerely like to hear your 'honest' views:

Related Party Transactions


On September 11, 2017, we received a license to certain patents from Chaya Hendrick, our founder and CEO, related to our technologies until the expiration of the patents. As consideration, we issued Chaya Hendrick, or her assigns, (i) 200,000 shares of Series B Convertible Preferred Stock, (ii) a royalty equal to 5% of gross revenues derived from products sold related to the patents, and (iii) certain minimum required payments beginning at $50,000 and doubling each year thereafter. The Series B Preferred Shares may be converted at the election of holder on a basis for 50 common shares for each preferred share at any time or an aggregate of 10,000,000 common shares in exchange for all 200,000 preferred shares.

NOTE 5 - STOCKHOLDERS’ EQUITY (DEFICIT)

Preferred Stock

As of September 30, 2017, the Company has 5,000,000 shares of preferred stock, par value $0.001, authorized and 610,000 shares issued and outstanding.


So the SMME shareholders have put in $24 million over many years and funded the research to create the technology …..
and the SMME shareholders then have to pay the CEO for a license to certain patents… including
a royalty equal to 5% of gross revenues derived from products sold related to the patents, and
Certain minimum required payments beginning at $50,000 and doubling each year thereafter

So if you double $50,000 for ten years, how much is that?

Then there are the series B shares converting at 50:1... what else can one say about that gem of a deal?

Don’t worry Mr. and Ms. Common Shareholder, I am sure the CEO will be thinking of you if she ever delivers some revenue and will desperately want to reward you for your long term investment at much higher prices