White Diamond Research on Quantum Cyber Solutions Ltd. (QUCY)
Bottom Line
Activ8 Report Assessment
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White Diamond alleges deliberate misrepresentation through promotion of fictitious or non-functional business segments (BP United's broken website, Project Lightshift's apparent prior non-existence) to pump the stock price. CEO David Lazar's receipt of securities convertible into 477 million shares at $0.013 per share, with board nomination rights, is a severe governance and self-dealing concern that also renders the $750 million implied market cap entirely unsupported by fundamental value.
White Diamond cites SEC filings (including an 8-K filed 4/28/26 and the investment agreement disclosing 477 million convertible shares), direct examination of BP United's broken website showing $0 prices and blank product pages, Google search results confirming no prior existence of 'Project Lightshift,' and LinkedIn and public records linking Project Lightshift's named individuals to Crowdpoint Technologies, a blockchain company.
White Diamond identifies no fixed date but characterizes the conversion and sale of CEO David Lazar's 477 million shares as an imminent and likely trigger for collapse, framing the SpaceX (SPCX) acquisition announcement on 6/26/26 as an insider pump-and-dump opportunity rather than a legitimate business development.
Not Present: Thesis-Only, Specific Event
How Quantum Cyber Makes Money
Quantum Cyber (QUCY) is a Nasdaq-listed company formerly known as Mainz Biomed (MYNZ), a molecular diagnostics business that completely changed its name and business in March 2026. The company now claims exposure to the drone, quantum photonics, and cybersecurity sectors. On 5/13/26, it announced an IP license agreement with BP United for drone technology; on 6/15/26, it announced a license of quantum photonic array IP from an entity called Project Lightshift; and on 6/26/26, it announced plans to acquire shares of SpaceX (SPCX). Financial websites report 22.77 million shares outstanding, but a fully diluted share count of 499.8 million has been identified, implying a market cap of approximately $750 million at the $1.50 share price.
Main Report Evidence
Hidden 500M Diluted Shares Dwarf Reported Float
Yahoo Finance and similar financial websites report only 22.77 million shares outstanding for QUCY, dramatically understating the true dilution exposure. An SEC filing discloses that CEO David Lazar's $6 million investment yields securities convertible into 477 million ordinary shares at approximately $0.013 per share. Including this conversion and other existing shares, the fully diluted share count reaches 499.8 million (before accounting for any additional options or warrants) against a current share price of $1.50.
QUCY Share Count: Reported vs. Fully Diluted
| Metric | Figure |
|---|---|
| Shares outstanding (as shown on Yahoo Finance) | 22.77 million |
| CEO David Lazar's convertible securities (477M shares at ~$0.013/share, for $6M investment) | 477,000,000 shares |
| Fully diluted share count (excl. options and warrants) | 499.8 million |
| Current share price | $1.50 |
| Implied market cap at $1.50/share (fully diluted) | ~$750 million |
| CEO conversion price per share | ~$0.013 |
Source: SEC filings cited by White Diamond Research; ChatGPT calculation cited in report; Yahoo Finance
Key Allegations
CEO Holds 477M Shares at $0.013 Conversion Price
White Diamond Research identified an SEC filing disclosing that QUCY's CEO David Lazar invested $6 million (structured as $3 million at first closing, $3 million at second closing) in exchange for securities convertible into 477,000,000 ordinary shares, a per-share price of approximately $0.013 against a market price of $1.50. An 8-K filed 4/28/26 also disclosed that four prior directors resigned and were replaced by four individuals including Lazar, who also holds significant board rights including the ability to nominate directors. White Diamond warns that if Lazar converts and sells, existing shareholders face catastrophic dilution.
BP United Drone Partner Has Broken, Fake-Looking Website
On 5/13/26, QUCY announced it executed an IP license agreement with BP United for drone technology, a press release that White Diamond says caused a surge in stock price. Upon examining bpunitedusa.com, White Diamond found that drone products are listed at $0, described as a glitch from lack of website maintenance, and the Security and Defense section of the site is a blank page. White Diamond characterizes BP United as 'a fake or, at best, a start-up drone shop' with no serious drone assets, concluding the licensing deal was used to falsely promote QUCY's pivot into defense solutions.
Project Lightshift Had No Prior Existence Before QUCY's PR
On 6/15/26, QUCY issued a press release announcing a license of intellectual property pertaining to 'quantum photonic arrays' from an entity called Project Lightshift, which White Diamond says caused a 20% intraday increase in stock price. White Diamond refined Google searches to results predating the PR and found no results relating to a quantum array project named Project Lightshift, concluding the entity did not previously exist. The two individuals named in the PR as linked to Project Lightshift, Dr. Wolf Kohn and Nadab Akhtar, are both identified by White Diamond as former associates of Crowdpoint Technologies, a blockchain company with no quantum computing or quantum array intellectual property, suggesting Project Lightshift is a newly created entity fabricated by two former colleagues from a blockchain firm.
Project Lightshift Founders Linked Only to Blockchain, Not Quantum
Dr. Wolf Kohn was announced in 2021 as chief scientist of Crowdpoint Technologies to head 'AI and optimization initiatives for its nextgen blockchain,' a role White Diamond notes was tied to blockchain rather than quantum technology. Nadab Akhtar's LinkedIn identifies him as building 'anticipatory systems' at Excite Capital using physics-based trading models, with the only quantum-related language in his profile being 'Quantum-Inspired Decision Intelligence'; he also served as President of Crowdpoint Technologies concurrently with Dr. Kohn. White Diamond concludes that Crowdpoint Technologies is the central link between both individuals and Project Lightshift, and that no quantum array or photonic IP previously existed between them.
SpaceX Share Purchase Offers No Discount, Seen as Pump
On 6/26/26, one day after competitor ILLR announced a similar SpaceX (SPCX) investment that caused ILLR's stock to more than triple, QUCY announced it would also take a position in SPCX shares. White Diamond notes that ILLR is able to purchase SPCX shares at approximately $105 per share, a significant discount to the then-current SPCX price of approximately $151, whereas QUCY disclosed no discount and will likely purchase from the open market at prevailing prices like any ordinary investor. White Diamond characterizes the SPCX announcement as 'nothing more than an opportunity for insiders to sell shares on the pump.'
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