In 2013, Sandra Deirstien approached HCM/Knightsbridge Group with several deals, including Cardtech, a company developing a credit card with biometric capabilities (fingerprint). The technology showed promise not only in banking but also in various industries and security applications. Despite the unfinished product, they had produced intriguing prototypes and sought additional funding for refinement. With limited resources, they aimed to pursue an OTC listing and eventually list on Nasdaq. HCM/Knightsbridge was engaged to facilitate this process.
Under the agreement, HCM/Knightsbridge would acquire the OTC entity and manage the transition to Nasdaq, while Cardtech would secure funding from their network. Although they lacked immediate funds, they assured HCM/Knightsbridge of their ability to raise capital. HCM/Knightsbridge proceeded with the acquisition of the OTC company and completed a huge amount of work, the advanced stage of the process, is
evidenced in the links to the exchange and disclosures.
Sandra Deisrstein was the contact point or liaison on both sides, HCM/Knightsbridge to CardTech, in Mid 2013 CardTech even though behind on raising money to pay HCM/Knightsbridge needed some urgent development funds they said to finish the product, HCM/Knightsbridge therefore advanced the fund secured against the IP which they agreed to the conditions. CardTech were aware they were behind on getting money to HCM/Knightsbridge, they were completely aware of the progress and the merger and the costs payable to HCM/Knightsbridge for that service and the expenses including trips to the USA.
After the funds went CardTech was in development mode and its owners were very excited with the progress, they claimed to have perfected the IP and had some big name firms involved, HCM/Knightsbridge flew in an expert systems integrator at Sandra’s request and we met in New York regarding him integrating the IP into new products, but then there was the Cardtech New York meeting.
As the progress reports were good, HCM/Knightsbridge organized to manage its time in the USA to manage the OTC to Nasdaq big move, everything was set and HCM/Knightsbridge had spent huge sums of money getting this far, but then:
1. The Intellectual property (the technology) was hidden in a separate company and CardTech shareholdes did not have any ownership of the actual asset.
2. CardTech defaulted on a loan that may see the ownership of the technology be challenged.
3. CardTech made a private placement to an insider of 15% of the company for 36c, less than 5% of the valuation at the time, in the weeks prior to trading.
4. CardTech board members missed the strategic meeting in New York because they were "Christmas Shopping".
5. No proof of the technology working was delivered as promised under the loan agreement.
When HCM/Knightsbridge terminated the merger due to the above factors the company CardTech continued on for a while but then the IP seemed to magically appear in a Company owned by the former CEO unrelated to CardTech.
HCM/Knightsbridge is still working with TBYH. It is also in the process of filing cases against CardTech and other related individuals and companies.
CardTech shareholders should contact HCM/Knightsbridge so as not to miss out on the action being taken against the various players.
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