History
A former mining company, Quad M Solutions rebuilt itself as a health benefits and staffing business, funded by dilutive share issues and a loan, and by August 2023 had lost its first planned acquisition.
2018-2019: Funding and a restatement
Quad M Solutions was then still a mining company, known as Mineral Mountain Mining & Milling. In October 2018 it signed an equity purchase agreement letting an investor buy up to $5,000,000 of new common stock over time. The company owed the investor a commitment fee of 1,428,571 shares and had to register 15,000,000 shares for resale. New shares meant dilution for existing holders. Shares on issue rose from 60,436,162 at the end of 2017 to 64,371,162 a year later, and 68,777,733 by the end of 2019.
In February 2019 the company said its annual reports for fiscal 2016 to 2018, and several quarterly reports, should no longer be relied on. The cause was its accounting for the Alaska Property and Mineral Lease: payments would now be expensed as incurred rather than booked as an asset and liability. The filing gave no restated figures. The company divested 75% of its former mining subsidiaries in April 2019 and changed its name to Quad M Solutions effective July 22, 2019.
2021-2022: A benefits business
The record is quiet for 2020, when the share count shown fell to 30,662,131; the beats do not explain this. By 2021 Quad M described itself as a staffing and employee benefits holding company. On April 9, 2021 it took a $4,200,000 loan from BeachStar Partners, due October 8, 2022, with a credit facility of up to $130,000,000 tied to insured employee lives added. It used the money to pay off convertible note holders and existing loans. In June 2021 it also agreed to end its Series D preferred stock for $2,000,000 over nine months plus warrants, and to convert its Series E preferred into 2,000,000 common shares plus warrants. Shares on issue stood at 78,011,174 at the end of 2021.
New deals followed. In September 2021 subsidiary NuAxess 2 signed a binding term sheet with Mammoth Life and Reinsurance, splitting stop loss captive underwriting profit 60% to Quad M and 40% to Mammoth; final agreements were still expected. In February 2022 it signed a services agreement with Quantum Computing Inc. at $5 to $10 per employee per month, to improve risk sorting and pricing. In June 2022 it disclosed agreements giving access to about 10,000 Advent Health employees; enrollment was not stated.
2023: An acquisition falls through
Shares on issue reached 217,437,033 by the end of 2023. On July 18, 2023 Quad M agreed to buy REV Technologies for $500,000 through new subsidiary QM Racing. It could not secure acceptable funding, as the terms offered would have been highly dilutive, and REV terminated the contract on August 14, 2023. As of August 16, 2023, the company said it would keep its staffing and healthcare business and planned to start a medical devices line in the fourth quarter of fiscal 2023.
Written from the 7 story beats below (2018 to 16 Aug 2023), which come from the company's own announcements and filings.