FastFunds Financial Corp (fka FFFC)

[21ZNA9]

The Fong Dilution Method. FFFC is Next.

Lets look at the companies Henry Fong has run and you will see a pattern. A pattern that SNVP will be repeating.!
China Nuvo Solar Energy, the predecessor to Surgline: Had no sales for years, only expenses. Raised almost $2 million. But China Nuvo bought technology, none of which it ever was able to exploit. Acquiring technology makes for great press releases, which China Nuvo was able to exploit, trading as high as $.16 a share—100 times the current price. And back then, 2006 to 2011, solar energy was “hot.” Now there has been a shakeout in the industry, profits are falling, it was time to exit the solar energy field and enter what Fong thought was the new “hot” field. To whom did China Nuvo sell its securities? From the July 2010 10k: On September 24, 2009, the Company issued 16,666,667 shares of its common stock upon the conversion of $65,000 of convertible debentures to non affiliated third parties. The shares were converted at $.0039 per share. On February 9, 2010, the Company issued 18,000,000 shares of its common stock upon the conversion of $54,000 of convertible debentures to non affiliated third parties. The shares were converted at $.003 per share. On April 1, 2010 the Company issued 55,940,455 shares of its common stock upon the two year mandatory conversion of the Company’s preferred stock of $123,069 (the “Stated Value”). Per the terms of the Certificate of Designation, the preferred stock converted at the result of the Stated Value multiplied by 120%, divided by the average of the closing price for the twenty (20) days prior to the conversion multiplied by seventy five percent (75%). This conversion represents only a portion of the preferred stock outstanding. The remaining amount of preferred stock outstanding at July 31, 2010 is $314,172 and the holders of those shares and the Company have agreed to extend the mandatory conversion period for one additional year to July 27, 2011.



In the 2009 10-K:
On May 4, 2009, the Company issued 6,357,666 shares of its common stock upon the conversion of $17,500 of convertible debentures and $1,573 of accrued interest to non-affiliated third parties. The shares were converted at $0.003 per share. On June 5, 2009 the Company issued 7,092,195 shares of its common stock upon the conversion of $25,000 of convertible debentures to non-affiliated third parties. The shares were converted at $0.003525 per share. On July 27, 2009 the Company issued 21,697,324 shares of its common stock upon the two year mandatory conversion of the Company’s preferred stock of $98,650 (the “Stated Value”). Per the terms of the Certificate of Designation, the preferred stock converted at the result of the Stated Value multiplied by 120%, divided by the average of the closing price for the twenty (20) days prior to the conversion multiplied by seventy five percent (75%). This conversion represents only a portion of the preferred stock outstanding. The remaining amount of preferred stock outstanding at July 31, 2009 is $437,241 and the holders of those shares and the Company have agreed to extend the mandatory conversion period for one additional year to July 27, 2010. On July 30 and 31, 2009, the Company issued in the aggregate 10,424,089 shares of its common stock upon the conversion of $42,500 of convertible debentures and $2,063 of accrued interest to non-affiliated third parties. The shares were converted at $0.004275 per share.




From the 2008 10-K:
On February 15, 2008, we issued 1,233,720 shares of our common stock upon the conversion of $68,175 of convertible debt and accrued interest. The debt and accrued interest was converted at $0.075 per share. On March 25, 2008, we issued 504,065 shares of our common stock upon the conversion of $15,500 of convertible debt. The debt was converted at approximately $0.03 per share.





See a pattern here? Fong issued convertible debt which later gets converted into stock. He never discloses the names of who bought the convertible debt. Now, the beauty of convertible debt to a small public company is that the “purchaser” gets to start his 6-month holding period to get the legend off his stock, while deferred until the actual conversion the price at which he gets the shares. This is critical for someone like Fong, because his companies always have a declining share price. If Fong’s companies were successful, then he would not like to issue convertible debt. He would want to lock in the price of his stock, like a normal company.

We see from the old 10-K another company Fong was involved in:
Mr. Fong was the president, treasurer and a director of Hydrogen Power, Inc., a pubicly traded alternative energy company, from its inception in 1983 until January 2, 2007.
I am not exactly sure I want to know what a “pubicly traded” company is. But levity aside, I’ll bet the same pattern happened with Hydrogen Power and I will further bet dear readers for this pattern to be repeated with Surgline. You may claim that Fong is no longer involved, but he his.