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Re: Kurt_Banoffee post# 69541

Monday, 02/11/2019 6:42:19 PM

Monday, February 11, 2019 6:42:19 PM

Post# of 104461
If one included options and warrants, you are quite right the ownership percentages would change if those instruments were exercised. But very few options and warrants have been exercised because almost all are out of the money. Simply review a 10 K or Q to see that the exercise prices are well above $0.05 with few exceptions. Admittedly, the structure of options and warrants is convoluted and complex but it is clear there are almost none that are in the money. And you are right that options and warrants have no voting rights unless they are exercised.


Regarding the loans made by litigants, I reference 10 K's. For example, the 1o-K of June 30, 2018, page 13 states, "CAUSE NUMBER 17-2033; Hays County, Texas

Two lenders, SBI Investments LLC, 2014-1, and L2 Capital, LLC, asked the Company’ transfer agent, Empire Stock Transfer, Inc., to set aside fifty-million (50,000,000) shares of stock as collateral for four loan agreements the Company had entered into in late March 2017. This joint request occurred despite the fact that or about September 30, 2017 Quantum had repaid $339,000 (plus accrued interest of $10,170) on two of the loans. Subsequently, in November 2017, the Company also repaid $213,650 and $8,636 of accrued interest on two of the remaining loans on their due dates.


On page 14 of the same document it states clearly the four loans amounted to $1.5 million dollars.

"SBI and L2, with new counsel, and Cleveland Terrazas PLLC, brought suit against the Company on October 10, 2017 for $1.5 million on the four notes that had been repaid and were not in actual default, though SBI Investments LLC, 2014-1, and L2 Capital, LLC claimed technical defaults. The court in Hays County granted the Company’s temporary injunction and set the full case for trial. The next day, SBI Investments LLC, 2014-1, and L2 Capital, LLC dismissed their suit against the Company and refiled similar actions in Kansas and Florida on the notes claiming that one note was paid on a Monday when it was due on a Sunday, demanding late payment in stock (they refused cash), and another was paid on a Friday when it was due Saturday, claiming a pre-payment penalty. All three suits are related to the same transactions. The lenders claim 140% interest, attorney’s fees, 20 million shares of stock, and damages. The Company maintains all loans have been paid timely."



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