Quantum Materials Corp. (fka QTMM)

[BigE1960]

PLAINTIFFS’ CLAIMS AND THE COURT’S FINDINGS

1. Quantum failed to pay the outstanding principal, earned interest and other amounts owed under the commitment fee notes.

The Court finds those notes were made in favor of L2 Capital and SBI for the sums of $147,000 and $63,000, respectively. They matured on December 29, 2017. The commitment fees were earned in full and owed to Plaintiffs upon execution of the Equity Purchase Agreement which was Plaintiffs commitment to purchase up to $5million in stock at Quantum’s discretion. The notes included interest earned at 8% from the date of execution to the payment due date or maturity date of December 29, 2017. And if the amount due was not paid within three months, the interest rate from the due date until paid in full would jump to a default rate of 24% per annum. The Defendant has failed and refused to pay. The Court finds Defendant incorrectly assumed the Commitment Fee Notes were released and satisfied when Quantum terminated the equity line of credit. They were not. Defendant’s lack of understanding or misunderstanding of the commitment fee is not credible and, even if true, is of no avail. The language speaks for itself. The fees were earned on the date of commitment and payable on a date certain, with a specified interest rate earned and a specific default interest rate when past due.