Lets take a look at this whole China deal, on the surface it seems like a great deal, but is it really. I thought that I gave a pretty good breakdown of the last note in post 7185. In the legal world Steve Saleen the CEO of SLNN has a legal obligation to represent the SLNN Corp. and its shareholders. When Steve Saleen enters into any negotiation on behalf of the shareholders, it's his fiduciary responsibility to negotiate for the best terms for the SLNN shareholders. A good analogy would be, comparing a business negotiation to a sporting event in which the participants on each team are playing to win for their team, and it would be considered dishonorable to put forth anything less than your best effort or to bet on an opposing team to win. In the first note Steve Saleen is clearly acting as a principle on both sides of the note. In the business world, transactions such as these are considered to be unconscionable contracts, and in a civil court a judge would most likely render it null and void, thus unenforceable. The first note already named Steve Saleen as a principle acting on behalf of GTA so Steve Saleen is clearly an acting officer for GTA on the second note as well. Now lets examine the bottom line the SLNN investors at one time valued the IP of SLNN at $40,000,000 that's the stated market cap on this web site. When I started investing my money in SLNN it had a $40,000,000 market cap and when I make an investment I'm out to win and win big, that's why I invested in SLNN. So here's my formula for the appraised value of the IP, a minimum of $400,000,000 / 2 = $200,000,000 [(US + China)- US] = $200,000,000 in today's world that's chump change. In my last post I compared the first note to a Movie, in this one our negotiator sells off a potential multi-billion dollar deal (All of China the biggest economy in the world) for $500,000 plus royalties. Lets call this movie DUMB DUMBER and the COMPLETE IMBECILE, the SLNN shareholders are being treated as if we were infantile children. Without knowing the terms and conditions of the royalty payments this settlement is meaningless. Just what is the royalty agreement. Lets take a look at some possible scenarios.1)Is it a set dollar amount per vehicle if so what amount 2)Is it a one time payment per year, regardless of number of vehicles sold, again no stated amount 3)Is it a percent based on profits, in this scenario just raise overhead and executive compensation and manipulate to any amount GTA wishes to pay. 4)Is it a set percentage based on sale price depending on the percentage, this could be a great deal for the SLNN shareholders. If I were negotiating on behalf of the SLNN shareholders, option (4) would be my choice, a 2% royalty off the top of each sale, per car sold period nothing less. As I stated earlier without knowing the terms of the royalty payments the information the shareholders were given is worthless. The SEC term for this is called "Fairy Tale Logic". So at the very least the SLNN shareholders need to hire a lawyer and demand the terms of this deal be fully disclosed and most likely renegotiated. At this point the SLNN shareholders need to be informed as to, exactly what this intellectual property is, and what its worth. and have legal council representing our interest and exploit our maximum legal rights and exercise every available venue that our legal system allows.
Here is my breakdown and speculation as to just what this IP actually is. First lets look at Elon Musk and his $40,000,000,000 folly, the TESLA electric powered automobile. Again here is another example of "Fairy Tale Logic". And here's why the electric powered automobile is a complete pipe dream that can never be become anything more than a small niche market, a rich mans toy. Lets take a hypothetical best case scenario were electric cars are the only cars allowed in the entire US market and all gasoline powered cars were sent to the crusher. Using rounded numbers for ease of clarification, the average home consumes 600 kwh per month/30 days/24 hrs.= approx. 1 kwh/hr. A Tesla super charger station charges a 70 kwh battery in 1/3hr drawing off the grid 600 kwh/(1/3 hr) equivalent to 200 additional homes added to the grid per Tesla automobile on the road. With the average home having four cars on the road our nations grid capacity would need to be expanded 800 times the existing one. Lets look at a more realistic scenario, one in which the technology is currently available and has the potential for rapid adaptation. Now what if all of the recent SLNN activity isn't the typical PUMP and DUMP scam but something much worse. I originally invested in SLNN because of my high regards for Steve Saleen and his technological creative and entrepreneurial skills. Here is what I think is under the hood of the Saleen Sedan, which Steve Saleen stated was SLNN's propriety property a state of the art high efficiency motor. And here's my guess as to what this engine actually is. Steve Saleen procured with our funds the license and territories for the COATES CSRV valveless motor. The COATES CSRV motor represents technological leap comparable to the switch from horses to the horseless carriage. The Coates CSRV engine, is an engine that has many advantages over the poppit valve engine, such as 66% less hydrocarbons 39% less carbon monoxide 97% less NOX 32% less CO2 in its emissions. China taxes the plates on gasoline powered cars to economically restrict the amount of cars on their roads, in an attempt to reduce the smog burden in their cities. So lets take a best case scenario for both the US and the Chinese markets. Best case US market maybe Ford or Lincoln fast tracked the S8 supercar and it is produced in small numbers, this added to the other Saleen Models equals at best a small niche market with possibilities of greater adaptation into the US market. Best case Chinese market, China being a centalized goverment will rapidly promote its adaptation into their markets, this combined with the fact that China is the largest and fastest growing automobile market in the world equals one of the greatest investment opportunities of the decade. The WM Saleen Sedans have the potential to be as large as Mercedes Benz and our negotiator sold it for $500,000, if this is the case we got screwed.
