Renuen Corp. (RENU)

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RENU: Update today on RenuEn the Truth ==>

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Pressing Onward

Wednesday, 03 Dec 2014

Despite an all out assault on the company and it’s management team over the past several months, RENU has moved ahead on at least a few different fronts. While the Federal RICO case is first and foremost, the Q3 financial report also gave some indications of prospective new business.

As announced previously, the company is pursuing it’s civil lawsuit against several defendants believed to have been orchestrating or involved in the online smear campaign. Read the company announcement here. Also, since this suit is being handled on the federal level, access is provided to individuals with a PACER account. The account is free, however each page that is downloaded will cost the user $.10. Occasionally, documents are made public, and can be downloaded by the viewing public free of charge. Such is the case with Document 47, Order Granting Motion for Discovery.

An online user alias provides a certain level of anonymity, however, especially when it relates to libelous material coupled with the racketeering accusation, these aliases can be uncovered and the true identity of the poster can be revealed. Such is the case with Document 47- The experts hired by RenuEn have proven to the court the necessity and importance of revealing these previously anonymous individuals, so that they can be included as defendants in the civil suit. The granted motion now allows subpoenas to be issued to several hosting websites, and the information used to create the alias will be provided to the court.

A few side notes: This step should alert even the sincere poster to temper their online posting, and not let emotion or the winds of change rule what they include in a public posting. Also, we live in a country where we enjoy the presumption of innocence until proven guilty, and this applies to the defendants in this case. Ironically, that same presumption was not applied to RENU, nor it’s management, nor it’s shareholders during the online smear campaign. Each and every one of those posts were accusatory, demeaning, judgmental, and offered no evidence or proof of wrongdoing, only conjecture, innuendo, and blatant falsities, convicting without a fair trial, yea, even a trial at all.

Q3 financials were published just before Thanksgiving Day. Many shareholders, not expecting any thing great in terms of revenues or growth, were disappointed that they were late in filing, and the much hated “Yield” sign was back in place for a few days only added to some’s discomfort. However, there were some highlights, and there were a few areas that needed further explanation.

Some of the highlights included a potential hotel and resort deal for energy efficient upgrades, as well as a possibility of developing a green community in Florida. Another highlight was the exclamation mark put at the end of the civil suits that were filed in Florida, and the fact that they had been resolved and are no longer in consideration. Another note was made indicating that there could be a civil suit against the Coral Springs Police Dept for their part in posting a fraud alert against RenuEn on their Twitter and Facebook pages. All of these things, in the opinion of this writer, indicate that the company is moving forward on several fronts, and making the very best of a very bad situation.

One of the major hurdles that shareholders read about in the financials, was a deal that was made that paid a percentage of future receivables to a merchant in exchange for a loan.

On September 11, 2014 the company sold thirteen percent of its future receivables to an unrelated third party allowing the company to continue operations. This transaction did not involve the issuance of any stock or equity in the company. The purchase agreement was personally guaranteed by certain officers of the company.
On September 29, 2014 the company sold 6.53% of its future receivables to an unrelated third party allowing the company to continue operations. This transaction did not involve the issuance of any stock or equity in the company. The purchase agreement was personally guaranteed by certain officers of the company
It appears that one shareholder did contact the company and received a clarification of this deal. Without trying to reinvent the wheel, it appears that a cash loan was made upfront, and the repayment is made only on future receivables. This allows the company to continue operations, and not be encumbered with a monthly payment, only having to make payments when actual sales take place. It was also indicated that there is a definite payoff on the loan, and it does not continue indefinitely. (Please contact RenuEn management or IR for additional information if needed.)

Although this is not the RENU that investors nor management wished to see at this point in time, it is very certain that management is pressing forward on it’s quest to establish itself and to become a profitable growing company. Unfortunately, that path includes a civil lawsuit that must be tried in a court of law, but it will hopefully provide a clear reputation for the company and it’s management, and provide for a solid basis from which to once again begin to rebuild itself. All of this will take time. Just need to keep pressing onward, a little bit at a time.