SVAD - Silverton Adventures Due Diligence and Thoughts - Part 1
What triggered my interest in SVAD is actually their one year chart. You see, a chart tells more stories than one can imagine. To understand SVAD and all the 'names' being dropped on the forum, we're going to look at the chart and events from July 16, 2013 to date. Key dates are marked on the chart.
Simply put, SVAD is a stock that has been 'taken down'--this take down is rather obvious and looks even planned by a third party. Take a look at the chart below (compliments of Georgie) to understand thoughts that will follow:
July 16, 2013: SVAD announces the Three Pronged Plans. In this press release, the following is mentioned:
Quote:
We have a team of very qualified professionals to implement this strategy and our mandate, moving forward, while we add sound accounting and legal representation to make good on this Agenda.
I am inclined to believe that this "team of very qualified professionals" could be the folks from the Syndicate Trust (S/T)who were brought in to help SVAD restructure their debt, clean up the balance sheet, and possibly even bring additional funding through S/T's resources. Part of this process involves full disclosure of SVAD's business plans to S/T--short and long term. S/T probably received a lot of privileged information, including immediate milestones that will be achieved by the company and so on. This release has no affect on the pps.
July 23, 2013: Silverton Adventures CEO, Ron Miller Announces Plans to Issue Convertible Preferred B Stock to its confirmed stockholders in street name. This press release affects the pps dramatically but on small volume, and weeks to follow show pps suffering, losing +1,000% in value...hmmm
September 17, 2013: Form 8-K is filed. A/S is increased. The Plan for Preferred B, C series are made available. The stock goes to hell, not so much that the A/S has increased to 2.5 billion but that the Plan for the Preferred Shares shows an enormous error--the conversion for Series C shows 1 : 250,000 which comes out to 2.5 trillion shares dilution.
Who drafted the plan though? If you look at the SEC filings and read the source codes, you will see that the drafter/author is counsel for the Syndicate Trust.
Was this "2.5 trillion shares" an honest mistake made by Syndicate Trust, and why did the two reassigned note holders conveniently convert down here? Makes me wonder to whom the original noteholders reassigned the notes? Who bought 100's of millions of shares down here?
Black law states that the onus is always on the drafter of a document, so it makes me wonder if SVAD management will go after the Syndicate Trust for this massive error which cost shareholders some serious losses.
I actually sent in an inquiry to the Company basically asking them if they really had plans to commit corporate suicide by issuing 2.5 trillion shares. I'm glad they caught this error and changed the plan to show a conversion of 1: 2500 which is a very reasonable conversion for preferred shares priced at $2.50. Under the corrected plan, the conversion floor comes out to 0.001 not 0.00001. Big difference.
But, we don't need to worry about the Plan at all now. I don't know if this massive error was made on purpose by Syndicate because what it did was it caused a delay in filing the annual report, and the company has now missed the deadline for the NT as well. Not only this, under the Act, SAVD will not be able to file a registration statement for at least 6 months so no one needs to worry about this Preferred Plan going through. What this also means is that the Syndicate Trust will not be involved anymore, especially after this "stunt" (IMHO)they pulled.
To think SVAD is complicit in some sort of scam with Syndicate is really a mis-statement. SVAD and its shareholders actually look like VICTIMS of Syndicate if you look at the timeline of events, who did what and the chart which clearly shows a "take down."
Another chart/ticker that suffered a similar take down is CLNO, take a look below for annotations and SVAD comparison:
Look for updates from the company and the 10K to come out shortly. The 10K will surprise, and also watch SVAD to reverse and correct back to 3c/5c range. SVAD has no business trading down here, and people ought to stop calling the company a scam based on having superficial knowledge of name connections.
By: buybio
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