Telix QSAM Inc (QSAM)

[BuddyWhazhizname]

A new 8K is out too. https://www.otcmarkets.com/filing/html?id=14493489&guid=n2EeUWsosfdIc3h

Item 3.02 Unregistered Sales of Equity Securities

Between September 15, 2020 and October 31, 2020, the Company settled approximately $2.8 million in defaulted promissory notes issued in 2017 and 2018 with 17 total note holders. Under the terms of such settlements, each such note holder agreed to convert all principal and interest under their respective debt obligations into shares of the Company’s common stock at a price equal to $0.22 per shares (“New Common Stock”). In total, 5,047,095 shares of New Common Stock were issued to the note holders, and an additional 6,356,385 shares are due to be issued to one noteholder but has not yet been issued as of the date of this Current Report.

As of November 6, 2020, an additional $150,000 in deferred employee compensation was converted to 681,818 shares of New Common Stock.

As of November 6, 2020, 521,364 shares of New Common Stock were due to be issued to an affiliate of EPH in connection with the conversion of $114,700 in promissory notes owed to that party.

As of November 1, 2020, the Company issued 800,000 shares of common stock to a service provider under a 12 month consulting agreement in connection with corporate communications and investor relations activities.

In October 2020, the Company issued 600,000 shares of common stock to three consultants in connection with services provided in the transaction and separation of the Company from EPH.

That's 14,006,662 new shares issued.

The Company holds approximately an 18.5% subordinated equity interest in EPH, and accounts for EPH as an unconsolidated investee entity. It is the intention of the Company that it will sell back to EPH its equity interests prior to the end of 2020; however, terms have not yet been finalized and proceeds to the Company are not expected to be material. Kevin Bolin, the prior Chairman and CEO of the Company, also serves as President of EPH; and Christopher Nelson, President, General Counsel and Director of the Company, also serves as General Counsel and Secretary of EPH.

I didn't realize those two were also running the partner firm. Makes you wonder how much of the stock just paid to "consultants" went to them as well.

4. QSAM has agreed that up to $175,000 in funds raised in a next financing will be used to pay any remaining legacy debt [to EPH] and liability payments anytime after the Effective Date.

Douglas R. Baum gets a salary of $250K plus bonuses in stock and/or cash to be determined, plus Series E-1 Incentive Preferred Stock.

C. Richard Piazza gets $225 plus plus.

CycloSam is expected to go into Phase 1 clinical trials in the first half of 2021

Probably dependent on raising enough cash to fund the trial.

So Bolin is out but Nelson is still there. Bolin's salary was $350,000 and Nelson's was $220,000. So overhead is still at least $700K per year, plus whatever extras management can steer their way.

The clinical trial will be done by doctors in a hospital, who will do everything and write up the final report. That's expected in 2023. Doesn't seem like the executives will have much to do, other than selling stock.