QED Connect Inc (QEDN)

[tvmetguy]

You gotta read it closely. The 10 mil facility gets drawn down on shares of SDW, not QEDN. SDW has will give Dutchess up to 17.5 mil shares for the 10 mil dollars, thats an average PPS of .57. Currently SDW is at .04, so this means Dutchess is expecting SDW to go way up in PPS as they sell more and more units though the subsidiary in the U.S. The new J/V is selling units that are 500k to 1 mil per unit, so the manufacturing cost is big, this is where the the 10 mil will be used. This way it allows the J/V to open sales channels and sell 10 mil worth of product quickly to get the ball rolling.

For QEDN, it is obvious it is just riding the coattails of Sofame. Sofame needed an American established company so its using QEDN in this J/V. I would fully expect Sofame to buyout QEDN at some point. QEDN shareholders would likely get shares of SDW, cash, or a mix of both.

The bottom line is, QEDN is now 50/50 in a J/V that is looking to have many millions in revenue. Sofame has a track record of multi-million rev/year, and its growing.