Quantum Cyber shows 22.77 million shares on Yahoo Finance. The fully diluted count, per the DEF 14A, is closer to 500 million.
Quantum Cyber's own CEO invested $6 million for securities that can convert into 477 million common shares at less than $0.013 per share, while financial sites show only 22.77 million shares outstanding. The gap between those two numbers sits at the center of a short-seller report that also questions the substance behind the company's drone, quantum, and SpaceX announcements. White Diamond Research, which holds a short position, alleges the company is a stock promotion designed to let insiders sell hundreds of millions of cheap shares into price spikes driven by press releases. The company has not responded to the report.
Ticker: QUCY (Quantum Cyber, formerly Mainz Biomed)
Research Firm: White Diamond Research
Report URL: https://whitediamondresearch.com/research/quantum-cyber-stock-is-in-trouble-with-questionable-businesses-and-a-500m-fully-diluted-share-count/?ref=shortreport.fyi
Position Disclosure: White Diamond Research holds a short position in QUCY and stands to profit if the share price declines.
Thesis
White Diamond Research alleges that Quantum Cyber is a promotional vehicle whose visible share count conceals a near-500-million fully diluted base, and that the company's headline business announcements lack operational substance.
- CEO Conversion Overhang: Per the DEF 14A, a $6 million investment by CEO David Lazar will convert into 477 million ordinary shares, implying a price of just under $0.013 per share. Yahoo Finance shows only 22.77 million shares currently outstanding.
- Lazar Board Control: A 4/28/26 8-K states that four prior directors resigned simultaneously and were replaced by Lazar and three others. The filing also grants Lazar significant board rights, including the power to nominate directors.
- Inflated Apparent Market Cap: At $1.50 per share, the basic share count implies a modest valuation. Applied to the asserted fully diluted count of 499.8 million shares, the implied market cap is approximately $750 million, which the report contrasts with what it characterizes as weak underlying businesses.
- Drone Partner's Empty Storefront: QUCY announced an IP license agreement with BP United on 5/13/26. The report documents that BP United's drone shop page lists products priced at $0 and its "Security and Defense" section is a blank page.
- Quantum IP With No Prior Footprint: QUCY's 6/15/26 press release announced licensed "quantum photonic array" IP from an entity called Project Lightshift. A Google search restricted to dates before that announcement, from 1/1/2000 through 6/14/2026, returned no results for any quantum array project by that name.
- Project Lightshift's Blockchain Roots: The individuals linked to Project Lightshift in QUCY's PR, identified as Dr. Wolf Kohn and Nadab Akhtar, were both previously tied to Crowdpoint Technologies. A 2021 PR Newswire release identifies Kohn as Crowdpoint's chief scientist for blockchain-related AI work. Akhtar's LinkedIn lists him as Crowdpoint's President during the same period. Crowdpoint's website, per the report, is a blockchain company with no mention of quantum arrays or Project Lightshift.
- SpaceX Announcement Without a Discount: QUCY announced on 6/26/26 that it approved acquisition of SpaceX equity. The report compares this to a Triller (ILLR) 8-K showing ILLR could purchase SpaceX shares at approximately $105 versus a current price of approximately $151. The report states QUCY is paying no discount and is simply buying at market price.
- Serial Rebrand Into Hype Sectors: The report documents that the company changed its name and business from Mainz Biomed, a molecular diagnostics company, to Quantum Cyber in March 2026, repositioning across quantum, cybersecurity, and drones in a single move.
Catalysts
- Conversion of Lazar's securities into 477 million common shares (no specific date disclosed in the filing; triggers at second closing of the $3 million tranche). If and when conversion occurs, the share count expands roughly 22-fold from the current Yahoo Finance figure.
- Insider selling by CEO David Lazar, which the report identifies as the primary risk following any stock-price increase driven by promotional announcements. No specific window is given, but the report flags it as the intended endgame.
- Market recognition of the diluted share count, which the report argues is obscured by basic-share figures on financial data sites. Any wider coverage of the DEF 14A terms could reprice the stock toward the fully diluted implied valuation.
- Investor reassessment of the drone, quantum, and SpaceX announcements, particularly if BP United's website, the absence of a Project Lightshift footprint, or the absence of a SpaceX discount receive broader attention.
- Subsequent quarterly filing disclosing the current share structure and any completed conversion tranches, which would make the dilution visible in standard screeners.
Company Response
The source report does not mention any request for comment sent to Quantum Cyber, and no company response of any kind is cited.
Notable Details
- BP United, the company QUCY licensed drone technology from in May 2026, lists its drone products at $0 on its shop page. Its "Security and Defense" section is a blank page. The report documents this directly from bpunitedusa.com.
- The 6/15/26 Project Lightshift press release, which the report says concerned licensing "quantum photonic arrays," drove a 20% intraday stock move, even though a pre-announcement Google search returned no prior trace of the project.
- QUCY was a molecular diagnostics company called Mainz Biomed as recently as March 2026. Within roughly three months of the rebrand, it had announced affiliations in drones, quantum photonics, and SpaceX equity.
- The report uses a ChatGPT calculation to arrive at the 499.8 million fully diluted share count. That figure is noted here as sourced accordingly; the 477 million conversion figure itself comes from the DEF 14A.
- ILLR's stock more than tripled after its SpaceX-related announcement, which the report identifies as the apparent template for QUCY's subsequent and nearly identical announcement the following day.
"We think QUCY is a project created for insiders to dump hundreds of millions of shares that they received for much lower than the current market price."
From the conclusion of the White Diamond Research report on Quantum Cyber.
FAQs
How much would the share count change if Lazar converts his securities?
Per the DEF 14A, full conversion would add 477 million shares to the existing base. Yahoo Finance shows approximately 22.77 million shares currently outstanding. A calculation cited in the report, attributed to ChatGPT, puts the fully diluted count at approximately 499.8 million shares, not counting any additional options or warrants.
What is Project Lightshift, and why does the report question it?
Project Lightshift is described in a 6/15/26 QUCY press release as the source of licensed intellectual property related to "quantum photonic arrays." The report found no results for any quantum array project by that name in a Google search restricted to dates before the announcement. The two individuals named in the PR, Dr. Wolf Kohn and Nadab Akhtar, were both previously associated with Crowdpoint Technologies, which a 2021 PR Newswire release and Akhtar's LinkedIn describe as a blockchain company with no apparent connection to quantum photonics.
Is QUCY's SpaceX announcement a meaningful deal?
The report argues it is not differentiated. A Triller (ILLR) 8-K cited in the report shows that company could acquire SpaceX shares at approximately $105 per share versus a current price of approximately $151, representing a meaningful discount. The report states QUCY is paying approximately market price with no comparable discount, making the announcement promotional in the author's assessment rather than a specially negotiated transaction.
Who controls Quantum Cyber's board, and when did that change?
A 4/28/26 8-K states that four previous directors resigned and were replaced by David Lazar, Robert Liscouski, David Natan, and Avraham Ben-Tzvi. Lazar, who is also the CEO and the investor behind the 477-million-share convertible securities, is described in the filing as holding significant board rights including the ability to nominate directors.
Disclaimer: This summary is not primary research and does not constitute investment advice. It is a brief overview of a detailed equity research report authored by the firm, organization, or source referenced in this article or at https://whitediamondresearch.com/research/quantum-cyber-stock-is-in-trouble-with-questionable-businesses-and-a-500m-fully-diluted-share-count/?ref=shortreport.fyi, which contains extensive evidence, regulatory filings, and analysis; readers are encouraged to review the full report there for a comprehensive understanding. The content provided in this publication is not authored or originated by us — we act solely as a distributor and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Always conduct independent due diligence and consult qualified professionals before making any decisions based on the information contained herein. We disclaim all liability for any loss or damage arising from reliance on third-party content, and the views expressed are solely those of the respective source and do not necessarily reflect our own.