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INPADOC listings for this patent:
Thanks platero for helping me figure out how to view the patent filing.
If you click "view INPADOC patent family" on the patent filing you can see all of the times and locations where the patent has been filed. While Dr. Wang is always listed as the inventor the applicant has been Dr. Wang, Rauchless, and SFIO in different jurisdictions.
Unfortunately for investors, in the EPO where this patent was granted "The right to a European patent shall belong to the inventor or his successor in title." (source)
Robert Wang filed for this patent while he was still working for the now defunct MWWM which was prior to his employment with SFIO. Therefore SFIO can have a claim to be the inventor of the patent. That is why SFIO discloses in its filings that:
"On December 21, 2008, we entered into an agreement to sell 100,000,000 shares of the Company’s Common Stock to Thomas Schoepfer and Robert Wang for licensing rights to certain patents regarding a smokeless nicotine delivery cigarette like device"
However, the law also states: "In proceedings before the European Patent Office, the applicant shall be deemed to be entitled to exercise the right to a European patent." (source)
Regardless, even if SFIO does not own the patent it is still nice to see SFIO's name as the applicant and it is also nice to see that after three years they might be getting beyond patent pending status.
Disclaimer: I am certainly not an patent attorney and have not researched case law. I am just going by the laws as posted on the EPO website.
Good find! I have never seen this application before, I believe that this is the first time that the application listing SFIO has been posted on this board but I had also searched the WIPO site and missed this one.
I just did another search on the EPO site and found that Smokefree Innotec is listed as the applicant on the patent that they PRed today. However, Robert Wang is listed as the inventor. I am unsure legally who gets the rights to the patent, the applicant or the inventor however my previous post on this topic should be disregarded.
Can anyone figure out how to actually view this application? I am having trouble getting past the search results screen. If so, please post a link.
http://worldwide.espacenet.com/searchResults?DB=EPODOC&locale=en_EP&TI=%22SMOKING+DEVICE%2C+CHARGING+MEANS+AND+METHOD+OF+USING+IT%22&ST=advanced&compact=false
EDIT: Patent inventor vs. patent applicant rights
Patent inventor vs patent applicant
(1) The right to a European patent shall belong to the inventor or his successor in title. If the inventor is an employee, the right to a European patent shall be determined in accordance with the law of the State in which the employee is mainly employed; if the State in which the employee is mainly employed cannot be determined, the law to be applied shall be that of the State in which the employer has the place of business to which the employee is attached.
(2) If two or more persons have made an invention independently of each other, the right to a European patent therefor shall belong to the person whose European patent application has the earliest date of filing, provided that this first application has been published.
(3) In proceedings before the European Patent Office, the applicant shall be deemed to be entitled to exercise the right to a European patent.
source: http://www.epo.org/law-practice/legal-texts/html/epc/2000/e/ar60.html
The patent is for the device as well as the charger.
Here is the patent application. It is still listed as patent pending. I emailed the European Patent Office asking them to confirm SFIO's press release. I will report back when I hear from them. I also emailed filter manufacturer AHN last night asking if they had any relationship with SFIO as the company claims.
It is important to note that even if this patent has been approved as the company claims the patent is NOT owned by Smokefree Innotec or its shareholders.
The patent is owned by Dr. Robert Wang and Peter Niehusen. According to SFIO's public filings the company only has licensing rights to the patent for which they paid Dr. Wang and Tom Schoepfer 100 million shares.
"On December 21, 2008, we entered into an agreement to sell 100,000,000 shares of the Company’s Common Stock to Thomas Schoepfer and Robert Wang for licensing rights to certain patents regarding a smokeless nicotine delivery cigarette like device"
NEWS: SFIO allegedly receives patent that they previously claimed to have owned.
http://ih.advfn.com/p.php?pid=nmona&article=47172908&symbol=SFIO
Smokefree Innotec Obtains European Patent for Its Unique Smokeless and Vaporless E-Cigarette Design
Smokefree Innotec In (USOTC:SFIO)
Intraday Stock Chart
Today : Tuesday 5 April 2011
Smokefree Innotec, Inc. (PINKSHEETS: SFIO) an established international distributor of e-cigarettes, (http://www.sfio.us or http://www.realsmokefree.com) announced today through its President and CEO Thomas Schroepfer, that The company has been informed that its European Patent application has been granted for "SMOKING DEVICE, CHARGING MEANS AND METHOD OF USING IT" (Application No. 08 738 110.9 - 2313). In a correspondence recently received from the Company's patent attorneys, relaying a communication from the European Patent Office Examining Division: "The mention of the grant of the patent shall be published in the European Patent Bulletin as soon as possible after the requirements concerning the translation of the claims and the payment of the fees for grant and publishing, claims fees, designation fee and renewal fees as laid down in Rule 71 (3), (4), (6) and (8) and (9) EPC are fulfilled." The Company's patent attorneys have also informed SFI that the fees have been paid, and the patent is granted but will take 4 to 8 weeks for publication. This Patent covers thirty-four European countries.
Mr. Schroepfer further stated, "After a great deal of expenditure in time and funding, the companies vapor less e-cigarette REAL product line is in final production stages of perfecting prototypes for testing and evaluation, with a release to the market expected within weeks. The product line will be prominently featured on the company's web site and available for sale in its shopping cart."
--------------------------------
Here is what was previously stated about their patent in their March 31 filing:
4. Competitive business conditions, the issuer’s competitive position in the industry, and methods of competition;
SFI™ has been granted a European patent for “SMOKING DEVICE, CHARGING MEANS AND METHOD OF USING IT” (Application No. 08 738 110.9 – 2313) and is the only non-vapor e-cigarette product that looks like a cigarette and instantaneously delivers sufficient heat to safely vaporize nicotine that is stored in the replaceable filters so that the smoker experiences the same warmth normally experienced by smoking a regular cigarette. The technology that allows this to occur is covered by the patent granted as described above, which should prohibit other companies from being able
to achieve this. Accordingly, this should give SFI™ a significant competitive advantage as competitors would likely have to infringe upon the patents to be able to offer the instantaneous vaporization of nicotine while being vaporless. SFI™ thus far is the only company that has been able to generate enough heat within a cigarette sized cylinder to vaporize nicotine and we don’t expect other solutions than our patented approach. Our proprietary rights do not infringe on the international patents held by Chinese companies such as Yuran, since the are glycol based and do not use nontechnology (see Ruyan’s International Application No, PCT/CN2004/000182 at http://www.wipo.int/pctdb/en/wo.jsp?IA=CN2004000182&wo=2004095955&DISPLAY=STATUS for comparison)
Our competition ranges from small and large companies such as Nic Stic to Phillip Morris.
SFIO's sense of humor: calling their product Real
Yoda, I am glad that you acknowledge that SFIO has no product. While it is acceptable for development stage companies to not have a product it is extremely illegal for a company without a product to claim that it has a Real product in order to dump stock.
For the past several years SFIO has claimed to have a Real product. Look at their most recent filing and other press releases. They don't claim to be a development stage company, rather they illegally sell shares under the guise of having a Real product. Some of these examples of the companies illegal claims of having a Real product are linked below.
A little over one year ago Stptesal was in the same position that many of you are currently in. He bought shares believing the companies lies about having a Real product. Unfortunately, the product was not real and Stptesal lost money. Since then he has occasionally stopped by to alert people to what he has learned about this fraudulent company.
Had you heeded his advice initially you would not be down over 50% on your SFIO investment and you would not still be invested in this fraud hoping against all logic that the company will bring to market the product that they claimed to have completed over two years ago. A year ago, when Stptesal realized what was going on at SFIO and began alerting investors that SFIO had no Real ecig both TopDog and BBB replied to him stating that the company had a Real product and called him a basher and they reiterated the company's promises that a Real ecig was coming soon. Sound familiar? Looking back now we know who was telling the truth.
Posters like Stptesal who try to alert investors to the reality of this "company" should be encouraged on ihub as their due diligence can help future investors from making the same mistakes that you, me, and many other posters here have made.
Two years ago SFIO stated that : "the R & D has been completed" and that they signed "a letter of intent for manufacturing the mouthpiece for their electronics-laden product. The work is to go to AHN..."
One year ago the company stated: "the company is coordinating immediate deliveries for its major distribution company presently under contract, servicing approximately 125,000 vending machines... The Company is ordering an additional one million filters to warehouse in preparing to meet this level of demand."
On February 4th 2011 the company again claimed to have completed development of their product, promising that it would be out by the end of March stating: "In prior press releases it had been disclosed that new technology was being researched and applied with the intention to have new products under development ready by the first quarter of 2011, allowing customers better and broader choices. We now have fulfilled on that expectation. Domestic and offshore production of the redesigned and less expensive REAL e-cigarettes is underway, and barring unforeseen circumstances they will added to the shopping cart before the end of March"
In early February Tom personally told me that he already had "several thousand starter kits" and "several hundred thousand filters" and he told me that he was only waiting on packaging which was expected to come in after the Chinese New Year in 2-4 weeks.
In refutation to what has been claimed by SFIO, AHN has steadfastly and repeatedly denied any contract or letter of intent with Smokefree Innotec (Feb 16th denial, Jan 24th denial, Jan 3rd denial)
They vigorously deny any relationship with SFIO because when Tom was involved in the NicStic scam where a nonexistent real ecig was promised to investors NicStic pretended to have a relationship with AHN and when the $300 million scam collapsed AHN's reputation was hurt by association.
The company claims to not be a development stage company. Its most recent filing answered the question:
"2. If the issuer has never conducted operations, is in the development stage or is currently conducting operations."
by stating :
"The issuer is currently conducting operations. "
In summation Yoda, you posted the excuse "yes, SFI is a START UP company therefore we ALREADY KNOW there is no product yet." You are right, it would be acceptable for a development stage company to not have a real product. What makes SFIO an uninvestable fraud is their repeated claim that they have a product produced and in the market. What makes SFIO a fraud is that they promised that their Real product was "coming soon" to America when they only made that promise to sell over one hundred million new shares of stock into the float. It is securities fraud to make an intentionally false statement in order to sell shares. With no contract with a filter supplier SFIO conclusively did just that.
Stptesal and others have been warning us about this reality for over a year now. If his posts had been encouraged on this forum than many of us would have a little bit more money than we currently have. Instead his posts are discouraged, and many posters here are bag holders in a company with no Real product.
Yes, Lt. Gen. Sullivan is the CEO of leading points. Is there a reason why his credibility should be questioned?
Obviously SFIO's press release about a deal with Leading Points was insincere since they have no Real product to sell through Leading Points. However, without investigating further I am inclined to assume that Tom is taking advantage of the Leading Points name and not that Lt. Gen. Sullivan is complicit in this securities scam.
While I won't give any benefit of the doubt to someone with a history of bilking investors such as the Fuentes brothers, Tom Schroepfer, or Evert Wilbrink I would invest blindly behind most of our honorable men in uniform.
Wasn't Kevin Sullivan a paid consultant from Leading Points, or is currently, eh.
How do you know that these convicted felons (securities fraud) own 100 million SFIO shares? I don't doubt this is true considering that they have solicited investors in SFIO (see my previous post for source) but your list would be more convincing with evidence.
As you know, they would be committing an additional felony in holding a 100 million share stale and not disclosing it.
If there is evidence that you can not post please email it to me at sfioinvestor (at) yahoo.com
Of course, the fact that securities fraudsters are.behind SFIO is merely circumstancial evidence of this fraud. The lack of the promised Real ecig is the smoking gun.
Correction: That 25% figure was assuming that Fuentes was still one of SFIO's employees however to my knowledge he is no longer directly employed by the company. However, truescammer has alleged that his research shows that Ken and his brother Charlie are still involved in this scam.
It seems that the company's current employees are:
Thomas Schroepfer
Manfred Bogaert
William Whalen
George Roth
To my knowledge none of SFIO's current full time employees have been convicted of securities fraud yet. However, if they continue to make false promises like the release of a Real ecig when they only intend to sell shares of stock and not a real product it is only a matter of time before Tom and friends have their day in court.
25% of SFIO's employees convicted of securities fraud. The rest will be likely be charged soon. Sorry Evert, selling your stock now doesn't get you off the hook for your crimes.
Yoda, I agree with you that it is hard to give much weight to truescammer's vague posts. If he has information then why not just come out with it? Unfortunately for SFIO shareholders, he is telling the truth about SFIO, the Fuentes brothers, and Kings Pointe Capital (the investment group that he alludes in his posts) I provided a few links to help guide you in confirming the veracity of truescammers statements
Ken Fuentes who works for SFIO was convicted of securities fraud along with his brother Charles Fuentes. source
Charles Fuentes founded Kings Pointe Capital management. source
Smokefree Innotec then hired Charlie to advise them on their current securities scam source. and hired Ken to be one of their four employees (no link provided but do a whois search for smokefree-innotec.com to find that Ken is employed by SFIO)
Everyone involved in SFIO has some connection to securities fraud. Tom and Evert were a part of the NicStic scam that stole $300 million from investors while promising a Real smokefree ecig that they never brought to market. The convicted felon Fuentes brothers are involved with SFIO through Kings Pointe Capital. And SFIO launders shares through PEG, run by Berresheim of the Swan Group frauds.
also
Evert and Nicstic
I have not done further research into PEG. Unfortunately, I have been very busy lately and have not been able to spend as much time in my second job of volunteer internet sleuth/pauly's savior. Many of my opinions on the PEG connection to this scam are from FofoH and Truescammer's posts.
I believe it is unnecessary to do the further research into the PEG connection because what good is another smoking gun when the biggest smoking gun of all is the lack of a Real ecig. Anyone who chooses to ignore all of this other evidence of fraud will certainly not be convinced when I uncover proof that SFIO is laundering its shares through PEG.
Even if nobody involved with SFIO had connections to securities fraud (rather than everybody as is the case) it wouldn't negate the fact that Smokefree Innotec is a scam.
The most important thing for investors and potential investors should be the fact that the company promised that its product would be released by the end of March when it had no intention of actually releasing the product. The promise was only made so that over 100 million shares (Evert's shares?) could be sold.
If the company has no Real product and only made the promise that the ecig would be released so that stock could be sold then the company is a scam. End of story.
No Real product. No real financials.
Both were promised to shareholders by the end of the month but neither was provided. It appears that the fraudulent promises might have been made to support Evert's insider selling.
This filing is not a financial report. A financial report contains a balance sheet.
However there is huge potential silver lining in this filing. As i have posyed since the end of january the stock has been plummeting due to the insider dumping. If Evert is the only insider selling and if he is out of shares then the pps will have the opportunity to rise. Keep an eye out for paid pumps to predict if the selling pressure will continue.
As an investor you might be fed up about being lied to about the Real ecig and release of financials. If you do decide to sell your stake you should try to sell at the ask during rallies rather than selling at the bid. You should also try not to sell your whole stake at once.
For the sake of those looking to get out I wont say more today.
The only difference is when I posted last month I was predicting that the company was lying about the release of their Real ecig and that the share price would fall.
Now the stock is down 40% from that point, the company has admitted that it has no filters, that its PR was fraudulent and I am saying 'I told you so.'
Is your other pick going to gap up tomorrow on that fluff PR? I just bought a very small position at $0.083 that I will try to flip if it does.
SFIO defrauded shareholders promising a Real ecig by the end of March. In reality the company knew that the it would never release its nonexistent product. Posters here who performed due diligence have stated from the start that the product does not exist. Clear evidence that has been posted is that SFIO does not have the contract that they claim to have with filter supplier AHN.
It is nice to see that the company finally admits that they have no filters. In the past they have claimed to have filters and only be waiting for packaging. The press release stating that the Real would be released by the end of March was only made so that 100 million newly floated shares could dumped onto the market. This is textbook securities fraud.
Tom also lied to you when he promised that he had signed a PR for distribution and guaranteed that financials would be available yesterday. Where are they Pauly? Still coming soon? I anxiously await the release of this financial statement to see if it conforms with the press releases, some since deleted from the SFIO website, announcing millions of dollars of sales last year.
Pauly, despite these lies inexplicably you decided to reward Tom and friends by purchasing more stock that the company and related parties are dumping?
PT Barnum had it right: there is a sucker born every minute.
this is from Pauly via email:
"That 1.4 million shares I just bought at 0.0032 is for you."
It seems like the seller at $.0032 the past two days is another insider or related party with essentially unlimited free shares.
Tocoro posted links to a new round of paid pumps from CRWE that was purchased this week by someone looking to sell shares.
Since the CRWE pumps began and the Real ecig was promised in early February an average of over 2 million shares have been added to the float every day. It is difficult to move a seller off the ask when they essentially have unlimited freely obtained shares to dump.
CHGS press release:
China GengSheng Minerals Expands Fracture Proppant Capacity to Address Growing Demand
Company Terminates Secondary Manufacturing Operating Facility Lease
GONGYI, China, March 29, 2011 /PRNewswire-Asia-FirstCall/ -- China GengSheng Minerals, Inc. (AMEX: CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that it has signed a definitive agreement with a local affiliate in Gongyi, Henan Province to manufacture 30,000 metric tons of its fracture proppants through the end of 2011. With this addition, China GengSheng has increased its total annual fracture proppant capacity by 20% to 90,000 metric tons.
In conjunction with this new agreement, the Company has decided to terminate its operating lease, entered in October 2010, and ceased production of fracture proppant products at its leased manufacturing facility in Gongyi, Henan Province.
As a result of the rapid economic development in Gongyi City, the local government has implemented measures aimed at improving quality of life for Gongyi residents, including construction and development of both rural and urban areas. The leased facility, which was expected to increase GengSheng's annual fracture proppant manufacturing capacity by 15,000 metric tons, to 75,000 metric tons, is located in an area of the city impacted by the government's development plans. The facility has been subject to regular power outages and other restrictions that have impacted manufacturing operations, rendering the facility unsuitable and impractical for the large-scale production of proppant materials. Given the cause of the lease termination, the facility's owner has released GengSheng from the lease agreement without penalty and liability.
"The worldwide increase in drilling activity continues to drive demand for our fracture proppants from both domestic and international customers," said Mr. Shunqing Zhang, Chairman and CEO of China GengSheng Minerals. "In 2010 our fracture proppant orders totaled $14.3 million, and we have received 2011 orders totaling approximately $15.9 million thus far in the first quarter. To better capitalize on the maturing fracture proppant market, we are actively looking to further increase our manufacturing capacity in 2011. We are currently evaluating strategic acquisition or new construction to effectively deploy our assets and best capitalize on the near- and long-term opportunity within this growth market where we believe we can achieve substantial revenue gains and expand our margins."
About China GengSheng Minerals, Inc.
China GengSheng Minerals, Inc. ("GengSheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, GengSheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, GengSheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries. GengSheng conducts business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan GengSheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd., Henan GengSheng Micronized Powder Materials Co., Ltd, Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd, and Henan GengSheng High Temperature Materials Co., Ltd.
For more information about the Company, please visit http://www.gengsheng.com.
To be added to the Company's email distribution for future press releases, please send your request to gengsheng@tpg-ir.com.
Forward-looking Statement
This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intend," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will," "will likely, " "should," "could," "would," "may" or words or expressions of similar meaning. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of China GengSheng Minerals, Inc. and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although China GengSheng Minerals, Inc. believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to its management, China GengSheng Minerals, Inc. cannot guarantee future results or events. China GengSheng Minerals, Inc. expressly disclaims a duty to update any of the forward-looking statement.
The AHN question is the smoking gun on the SFIO fraud.
Or, more accurately, it is the smokefree gun.
SFIO stated in a press release on 3/18/2010:
The Company is ordering an additional one million filters to warehouse in preparing to meet this level of demand.
der aktuelle Stand ist immer noch der gleiche. Wir haben SFIO ein Angebot zur Herstellung der SFIO Filter gemacht. Es gibt keinen Auftrag oder einen Liefervertrag irgendeiner Art mit SFIO. Wir haben den Eindruck, dass weder ein Interesse noch das Kapital vorhanden ist, um entsprechende Filter bei uns einzukaufen oder produzieren zu lassen. Natürlich stellen wir im Moment entsprechende Filter oder Filtercartridges auch für andere Kunden her.
Wenn jetzt bestellt würde, könnte frühestens in 8-12 Wochen mit der Produktion der Filter begonnen werden.
I hope that you all get your PR tomorrow.
Hopefully they release audited financials and unveils the Real ecig on their website tomorrow however if you get more promises of soon then you should probably keep in the front of your mind that SFIO's past PRs were so fraudulent that the company has been deleting them off their website.
Did anyone notice...
that the previous PR where SFIO stated that they made "significantly growth in 2010" and that trading was difficult due to "chaotic December winters" etc. has been deleted from SFIO's webpage???
However, it is still available here:
www.otcmarkets.com/stock/SFIO/news
Which company deletes their own PR's, unless they are compromising?
7 more days and we can all see the "Significant growth" in the Financials.......
CBEH letter emphasizes unreliability of SAIC.
I know that it has been debated here but have any other Chinese companies come out and stated that SAIC numbers shouldn't be trusted?
From their opening statement:
"The analyst relies exclusively on innuendo and tries to exploit the well-known fact that there is rare consistency between Chinese SAIC filings and U.S. SEC filings to make unfounded and unfair conclusions."
"The “report’s” author relies heavily on SAIC filings to suggest that we overpaid. The internet link listed below has an analysis of why SAIC reports cannot be relied upon and therefore cannot serve as a legitimate basis for any criticism of any transactions the Company has entered into. We deal here, instead, with the facts."
Later they devoted an whole page of the letter to SAIC v SEC:
"(Reference 4)
Allegation: Discrepancy between SAIC report and SEC report
FACT: The author of the “report” bases the vast majority of his conclusions on SAIC reports. That reliance is misplaced. The author admits that the reports by their nature are not reliable. He claims that this unreliability does not pertain to CBEH. The point is untrue for two reasons. First, his rationale for the unreliability of the SAIC reports is wrong, as we detail below. Second, he assumes that SAIC reports are true for other companies in CBEH’s sector. That premise is totally inconsistent with his admission that SAIC reports are not reliable. This tactic of pointing out discrepancies between SAIC reports and SEC reports, and then concluding that the SEC reports must be lies, is a standard but completely invalid tactic frequently employed by short sellers.
Each Chinese company is required to file its financial statements annually with the State Administration for Industry and Commerce (SAIC). The SAIC filings are required for a company to maintain a business license. The SAIC's function is similar to the "Office of
the Secretary of State" at the state levels in the U.S., whose primary responsibilities include business registration, issuing permits and maintaining corporate status of a business. The SAT (State Administration of Taxation) is similar to the Internal Revenue Service in the U.S. and filings made with the SAT are used by the central government to assess income taxes. It is common for a Chinese company’s SAIC filings not to match its SEC filings because of differences in accounting treatment between Chinese
accounting standards and U.S. GAAP, among other things. In addition, SAIC filings are not consolidated financial statements and each subsidiary often includes inter-company transactions. The SAIC report, unlike a company’s SAT report which is non-public but is reviewed by regulators, should not be relied upon for accuracy, representation, and analyses of the company’s financial position. Therefore, financial reports obtained from SAIC are not an accurate reflection of a publicly traded holding company's consolidated financial statements.
On the other hand, the financial statements, prepared by the management based on the company’s records, that the Company submits to the SEC are audited annually and reviewed on a quarterly basis by our auditor. The Company does not have any
obligation to update SAIC filings. Therefore, whenever there is a discrepancy between the financial information filed with SEC and the SAIC report, the financial information filed with SEC should be accurate and relied upon, because they are prepared from the
most recent management financial information that is subject to regular audit.
Given investors’ increased sensitivity about U.S.-listed Chinese firms’ SAIC filings, we will make it a priority to ensure our financial information included in future SAIC filings are reconciled with the financial information filed with the SEC.
Please click on the link to reference an analysis of the discrepancy between SAIC reports and SEC filings.
http://weybenjamin.wordpress.com/2011/02/18/benjamin-wey-a-china-experts-views-on-
saic-and-sec-filing-discrepancies-for-u-s-based-companies/ "
If the Real ecig is "delayed" (read: nonexistent) because they don't have a contract with their filter supplier that is not an "unforeseen circumstance" rather it is fraud.
I believe that AHN has stated that the lead time on filter orders is 6-8 weeks. If SFIO did not place an order with them yet stated that they would have a product before the end of March then they can't hide behind the words 'expected' and they are not covered by the safe harbor statement.
All of the shares that have been sold since this press release provide the motive. The fact that SFIO never ordered filters proves that the company had no intention of adhering to the PR. This would not be a difficult case to prosecute. That said, the SEC couldn't get Madoff when Harry Markopolos handed them the case on a silver platter so its not unreasonable to think that this scam could go on a while longer despite the evidence.
I do realize that we are not yet at the company's deadline of a "Real ecig added to the shopping cart before the end of March." The company has the ability to prove me wrong and I hope that it does so. However, I make this post today with confidence that there is nothing Real coming out of SFIO.
RAG, I have made a half dozen posts to your question of my motivations. I am Pauly's savior.
Gamma1848 -
Go back and re-read the PR. Not sure why you insist that it has to happen by the by the end of March. It would be nice but I can't find where they committed to that date.
Sure it was mentioned and there are expectations but there are certain keywords such as "expected" and "barring unforseen circumstances" that make keep them legal.
SFIO broke the law if they issued a press release stating that their Real product would be out before the end of March, only to instead release over 90 million shares to the float since the PR, if they never had any intention of releasing a Real product before the end of this month.
Despite TopDog's insistence to the contrary, the press release (reproduced below) issued by the company twice states that the product will be available by the end of March (not April).
It is important that investors in this company have a set no confidence date whereby if the company has not delivered on its promise to provide a Real ecig (promised in 9 days) and a financial report (overdue, this was promised over a month ago) you will begin selling your shares. When your no confidence date is hit, remember that it is best to sell at the ask and to sell your position in pieces over a several days.
I hope I am wrong about all of this. I anxiously await the day that I post here with a Real ecig in my hand and my foot in my mouth. Despite the fact that SFIO has no contract with AHN they do have 20,000 sample filters. Hopefully those samples will be used to bring this Real product to market. I have no confidence that the Real ecig will ever come which is why I no longer have a position in SFIO.
Yoda the original statement from George Roth was that the REAl Ecig would be sold by the end of March or begining of April. The bashers have moved the date up
SMOKEFREE INNOTEC HITS THE MARK WITH ONLINE SHOPPING CART
Posted by Smokefree Innotec on Feb 4th, 2011 in Smokefree Press Releases | 0 comments
LAS VEGAS, NEVADA February 4, 2011- Smokefree Innotec, Inc.(Marketwire:SFIO – News) an established international distributor of e-cigarettes, (http://www.sfio.us or http://www.realsmokefree.com) declared today through its President and CEO Thomas Schroepfer, that “With some minor fine tuning, our shopping cart is now fully operational giving our customers the opportunity to purchase the first of our products being offered: Smokers Option, in both Menthol and Cinnamon. The web site itself is undergoing extensive redesign, to include complete product description located in easy to access click through portals. Beginning with Smokers Option presently available, additional products expected to be offered soon include “smokeless REAL e-cigarettes” (pronounced “Re-Al”) with an inventory of redesigned starter kits scheduled for delivery before the end of March. Marking a price reduction from $79 to under $18, the starter kits have been redesigned with our new technology to include the electronic device (‘Zig’) and an initial supply of 10 filters, a compact charging unit and power supply, all designed to fit inside a package the size of a cigarette box.”
George Roth, CFO, added “In prior press releases it had been disclosed that new technology was being researched and applied with the intention to have new products under development ready by the first quarter of 2011, allowing customers better and broader choices. We now have fulfilled on that expectation. Domestic and offshore production of the redesigned and less expensive REAL e-cigarettes is underway, and barring unforeseen circumstances they will added to the shopping cart before the end of March. Our present inventories of products sold internationally as seen on our website are presently committed to those markets; but all new product lines will be first introduced in the U.S.”
About Smokefree Innotec, Inc: www.smokefree-innotec.com
Smokefree Innotec, Inc. is in the business of designing, developing, manufacturing and marketing hi-tech, nicotine and non-nicotine cigarette-like delivery devices which are completely smoke and vapor-free and tobacco-free. Smokefree Innotec’s products are designed to protect the non-smoker from second hand smoke and all its effects while providing the smoker a way to enjoy a smoke-free cigarette anywhere, including places where smoking tobacco or similar substances is prohibited. Further, our products will allow the smoker to enjoy smoking either nicotine or flavored non-nicotine cigarettes while not having to worry about the offensive dangers and ill effects of regular cigarette smoking. However Smokefree Innotec products are not intended for any prevention or therapeutic treatment of any disease.
A number of statements referenced in this Press Release are forward-looking statements, which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, and within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this Release may be identified through the use of words such as “expects,” “will,” “anticipates,” “estimates,” “believes,” or statements indicating certain actions “may”, “could,” or “might” occur. Such statements reflect the current views of Smokefree Innotec Inc. with respect to future events and are subject to certain assumptions, including those described in this release. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products, services, and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. Smokefree Innotec Inc. does not undertake any responsibility to update the “forward-looking “statements contained in this news release. Disclosures made in this Press Release are limited by good business practice and to that permitted to the public by applicable securities regulations, both Federal and State, including rights granted to shareholders under the Nevada Revised Statutes NRS 78.257 regarding limitations of preferential and selective disclosure of confidential Company information.
SOURCE: Smokefree Innotec, Inc. Contact: Smokefree Innotec, Inc. George Roth, CFO +1 949-309-2778
Coming Soon!
The company promises that everything is coming very soon. In fact, in the near future the company promises that they will issue a press release saying that soon they will provide a financial report and a launch a Real ecig.
The ask is moving down to $.003 tomorrow, that is the only real thing coming soon to SFIO's investors.
BBB, I believed you this time. After all the company promised to start shipping their Real product within 9 days so we should expect some sort of launch PR... or a PR citing unforeseen delays, they company issued a PR citing the volcano as the reason why they didn't bring their product to market in Europe last year. Smart money is on SFIO blaming the earthquake for no Real ecig this time around.
But I will tell you this: If no PR Monday or Tuesday, I will never bring up the words 'press release' or the letters 'PR' again. Fair enough?
Yoda, glad you brought up PEG. These are very good questions that you are asking.
The company has given away a lot of shares. Over 150 million of those shares have hit the market since last November with over 80 million new shares hitting the market in February alone. This massive increase in float is the primary reason why current investors are watching SFIO hit all time lows.
Due to the fact that the increase in shares freely traded, up over 40% since the end of January, is the greatest factor in the share price declines it is worth exploring who might be selling these shares. As a trader you want to know the origin of the selling pressure so that you can try to figure out when this oversupply of shares might end. Only once this dumping stops will price appreciation ever be possible. One signal to look out for is paid stock alerts and youtube videos (like the one stickied atop the page,) an entity only pays to promote a stock if they plan to sell shares. When these pumps end it might be a signal that this massive dilution of freely tradable shares over saturating the market will cease.
CRWE has been paid over $40,000 by the related parties dumping stock since the end of February. SFIO itself is not paying for these pumps. Third parties such as 'StockMister LLC' or 'Stock Expert' are hired to keep the source of payments to CRWE anonymous. Further, it is likely that it is not SFIO directly paying StockMister or Stock Expert, it is likely that the company is not currently dumping shares directly onto the market rather it is a related party holding SFIO stock that is doing the dumping. I believe that PEG is one of the primary groups currently dumping stock.
For long term investors and not traders it is worthwhile to examine who is receiving these free shares. Since the shares being given away for "services" are being sold onto the market (by law these shares should have a one year lock up period) they represent a direct transfer of wealth from investors to these third parties. At the time that the shares were awarded they represented over a $5,000,000 transfer of wealth from shareholders to PEG and other entities.
As a long term investor you should question what value the company is receiving in return for its massive dilution of your equity. A true financial statement would detail which services were being paid for with these new shares and would provide further detail into what "services" were provided to the company for the more than $5,000,000 worth of stock that was received. The critical investor should attempt to determine what services rendered to the company could have been paid for in stock. If these "services" rendered to the company have a fair market value of substantially less than the $5,000,000 paid then the company may be in violation of SEC regulations protecting the interests of shareholders. If companies received shares in compensation for services that were not actually rendered and if the company is merely using these third parties to launder shares onto the open market then SFIO is committing a very severe SEC violation.
150 million shares have been sold since the company made its filing on October 25th (the day the share price and accum/dist line nosedived) stating its intention for massive future dilution. If any single entity ever had more than 37.5 million of those shares then by law they should have had a Form 4 filing. This filing never occurred (according to the Oct 25 filing SFIO stated that its only two beneficial owners were Tom Schroepfer and Evert Wilbrink.) This is potentially evidence of a SEC violation regarding the recent dilution. A further SEC violation has occurred if these sales were made by 5% owners as they should have had to file within two days of their sale of stock.
Additionally, as Yoda pointed out on Thursday, the sellers of these restricted shares should have adhered to Rule 144 which states in part "the number of equity securities you may sell during any three-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold" This means that any entity that sold more than 5 million restricted shares this year has broken the law.
Due to the high volume of dilutive shares that have come to market since the October 25th filing it is very likely that the Form 4 requirement and the Rule 144 requirements have been violated. These are serious violations which warrant further investigation into who is actually selling these shares. Further additional investigation is warranted into whether these shares were provided to companies in good faith for services rendered to the company.
In the NicStic fraud, a third party company was paid millions of free shares for advertisement services for NicStic's nonexistent vapor free ecig. The shares went to a company led by Mr. Berresheim, who later went on to found PEG. Currently, SFIO is giving free shares to PEG for advertisement services for their nonexistant Real ecig. Due to the fact that history is likely repeating itself further examination of PEG is warranted.
I am a bit busy this week with some other projects but I promise to make a follow up post examining PEG when I get around to it.
While we are all waiting for financials and PR about 'REAL' launch, I thought I would do some digging into these accusations about PEG and other conspiratory mumbo jumbo and here are a few interesting tid bits, just fyi.
Notice that for CRWE, the company specifically states that they do not want anything to do with 'pump and dump' operations,
"If you are looking to promote (PUMP and DUMP) promotion, please do not contact us". The company seems to have hundreds and hundreds of promotions for thousands of OTC tickers, SFIO was one of them.
The company has offices in Las Vegas and so for SFIO to hire them to get info out about the company in order to attract further investment capital is completely normal, I do not see anything wrong with it as other posters here have attempted to draw speculative connections with SFIO and CRWE; I dont see it folks.
URL -->
http://crweselect.com/contact/
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As for PEG, Perfect Entertainment Group, it
is a VERY small European online media group (not even incorporated so no website, etc) which does promotions via twitter
and other financial and social media outlets in order to raise investor awareness about the company.
I found a couple saved videos and other ads from the company on some european sites for other startup companies (www.ustream.tv/channel/perfect-entertainment-group); so in existence? Yes. On facebook, twitter? Yes. Do they have their own corporate website yet? No, not YET, however the do have a domain at -->
http://www.perfect-entertainment-group.com/
AGAIN, SFIO is attempting to attract investment capital and also see about getting shares traded on the Frankfurt Exchange, nothing wrong with that; in fact, it could eventually lead to big fish investing in SFIO thereby giving the company huge investment capital to work with which would show on the balance sheet and raise pps.
There were all sorts of conspiracty theories trying to connect SFIO and PEG as if they were all in bed together diluting shareholders but the PR stated,
"The terms of the compensation provided by SFI are not being
disclosed, but are strictly monetary and do not involve the issuance of SFI shares".
URL-->
http://www.euroinvestor.co.uk/news/story.aspx?id=11245885
Any official Press Release like this from the company which contained outright lies would make the company eventually pay dearly by the SEC, so again I just do not see the conspiracy; I dont see it folks. Cmon, teach me, give me some more BS conspiratory info if you got it, lets go. Anyone? Gamma? Fo? You want to play this game, ok, lets have all you got, lets REALLY look into everything and do our due diligence altogether and we can come to the bottom of the 'conspiracy'.
Again, as I stated in a previous post, when I searched through the last filing from the company with the seal of the state of Nevada for their incorporation I saw that that document (http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=38418)
stated,
"None of the foregoing persons have been the subject of a conviction in a criminal
proceeding or named as a defendant in a pending criminal proceeding."
and,
"None of the foregoing persons have been the subject of any finding or judgment by a
court of competent jurisdiction (in a civil action), the SEC, the CFTC, or a state securities
regulator of a violation or federal or state securities or commodities law"
---
BTW, the conspiracy involving Swan Group and Berresheim, I did not understand because according to the link below, Berresheim resigned in Jan 2009 from Swan Group after selling a hotel.
URL-->
http://www.swangroup.us/index.php?option=com_content&task=view&id=23&Itemid=9
So who knows what he is doing these days but he is not a part of Swan Group; fyi, I think he spun off one of the Swan Groups' investment holdings into www.denverson.com to try his own hand at the idea for the 'smoke-free' product, it has nothing to do with SFIO.
So, again please post in a single concise clear post what all evidence has allegedly been compiled to suggest that this company (SFIO) is a scam. What all names and scandalous people are involved and what is their connection with TS and Wilbrink? Obviously, whatever you think you know is not shared by the state of Nevada nor the SEC so still have yet to understand the scam argument.
Please post some more scam arguments in order to clarify, thx. Or are you bashers going to just go quiet now while you gobble up all the shares you scared out of dozens of niave investors???
Not trying anything here other than truthfully desiring to get to the bottom of these allegations, thank you.
cheers
GLTA!
PR Tomorrow!
Or BBB never speaks of it again.
I believe in you BBB, I really do.
But I will tell you this: If no PR Monday or Tuesday, I will never bring up the words 'press release' or the letters 'PR' again. Fair enough?
CBEH, 20 mm buyback.
Thanks. Do you have a link to the buyback info? I don't see it. Whats the odds of them actually buying back a single share? I'd set the line at about 10:1 against.
I'll start to average into a new short position on this pop. Will short heavily if the gap fills at $4.80
CBEH to respond to hit piece.
XI'AN, China, March 21, 2011 /PRNewswire-Asia/ -- China Integrated Energy, Inc. (Nasdaq: CBEH), a leading non-state-owned integrated energy company in the People's Republic of China, today announced that it will make available on its investor website a detailed letter to shareholders from its CEO, Mr. Gao Xincheng, on or before Wednesday, March 23, 2011.
The letter will comment in response to the recent negative post to provide additional information and background on the Company's business and accounting practices. This will include a point-by-point response to assertions made by the author concerning China Integrated Energy's acquisitions of biodiesel plants and retail gas stations, interest income on cash on the balance sheet, Variable Interest Entity (VIE) corporate structure, profit margins for biodiesel business and wholesale distribution business, and the recent capital raises.
The Company believes that this letter will provide transparency to its shareholders and other interested investors along with a better understanding of its operations and the competiveness of China Integrated Energy's business model.
The letter will be available at the "Investors" section of China Integrated Energy's website, www.ChinaIntegratedEnergy.com.
Puts exercised:
I consider this a win:
I was short three $14 puts that expired unexercised
I was short seven $12.5 puts all were exercised
I was short one $10 puts that was exercised
I was short six $7.5 puts that expired unexercised
LLEN puts
With LLEN at $7.15 their $7.50 puts expiring today have a bid/ask of $0.80/$0.95. There has been a fairly high put/call ration on LLEN all week.
edit: ooops by the time I posted this the option market already corrected to a 0.35/.4 spread
I wasn't watching CNBC, did Herb Grenberg start bashing around 10:30 today or was that sell off related to something else?
RedChip released their report on LLEN today reiterating a strong buy $17 target. I thought that RedChip had been fired? Am I thinking about a different stock?
More bad news.
I called the transfer agent today to find out the current float and was told that SFIO wasn't allowing them to release that information. I believe that the seller sitting at $0.0035 is selling freely obtained shares and I was calling to confirm whether all of the shares sold at $0.0035 today were indeed increasing the float.
SFIO putting a gag on their transfer agent is obviously highly suspicious. This is even worse news than if I had merely found out that those were freely obtained shares being released at $0.0035. Does anyone know if this constitutes an SEC violation? I think it might be time to get the lawyers involved.
Yoda, you sometimes seem inclined to do some real due diligence. I believe that this is a red flag greater than the lack of financials or a Real ecig. What are your thoughts on this development? I urge you or any other investors to call the transfer agent tomorrow and verify that my post is true.
One more thing Yoda, why are you giving the company until the end of April now to shit or get off the pot? Previously you had stated that your no confidence date was the end of the month. I fear that you, like other investors, are going to fall into the trap of believing the company's promise of soon and will continue to push back your no confidence date until its too late.
SFIO's business license WAS in default.
According to the information that you posted it was expired at the end of the year but it was renewed yesterday after Tocoro brought it up on iHub (source). If not for Tocoro the license would likely still be in default.
The posts about the patent are NOT lies. I have provided documentation (copied below) showing this. Even Yoda acknowledges that the company does not own a patent.
Patents are public information and the public information that has been cited shows that there is only a patent applied for which SFIO shareholders paid over a million dollars in stock for the licensing rights.
If you believe that the due diligence is incorrect then please post any evidence to the contrary.
I think that long shareholders should be thanking people like Tocoro and Yoda who post due diligence as it might inspire the company to move toward legitimacy. Don't shoot the messengers who provide real due diligence.
I can't wait to put my foot in my mouth if the company files a financial report and comes out with their real ecig by the end of the month as promised. Heck, if the company posts financials, provides real ecigs, and responds to the allegations that they are closely linked to fraud I might even consider buying this stock again.
SFIO does not own the patent.
Patents are public information, if they owned the patent you would be able to prove it with a simple records search. You could easily prove me wrong if you were telling the truth.
Here is the patent application the patent is not yet approved rather it is in patent applied for status. The patent is not in the name of the company but rather it is in the name of Rober Wang and Peter Niehusen
WIPO defines patent applied for status saying:
Many companies label their products embodying the invention with the words “Patent Pending” or “Patent Applied For”... these terms do not provide any legal protection against infringement, they may serve as a warning to dissuade others from copying the product as a whole or certain innovative features
On December 21, 2008, we entered into an agreement to sell 100,000,000 shares of the Company’s Common Stock to Thomas Schoepfer and Robert Wang for licensing rights to certain patents regarding a smokeless nicotine delivery cigarette like device
Yoda, excellent post about the dilution.
The most important part of your post was the acknowledgement that since the October filing over 150 million new shares have become freely tradable.
The selling pressure from the doubling of the float can not be absorbed and that is what is driving the share price down. When these new shares hit the market the float increases. This is what I am referring to when I discuss dilution. Additionally, we all realize that when someone pays for message board and blog pumps they are only doing this if they plan to sell new shares onto the market. Unfortunately for share holders CRWE put out more of these pumps today.
I am glad that you acknowledge that CEO Tom has sold 130 million shares. Both BBB and TopDog52 have posted recently that Tom told them that he has not sold any shares which we know from filings to be an outright lie.
I never stated that in a vacuum Tom's share sales were indicative of fraud. However, insider sales can often be interpreted as a lack of confidence about future performance of an equity.
Despite the fact that the company was issuing PRs about fantastic profits and new orders and contracts Tom sold over 1.25 million dollars worth of shares. In the end the orders didn't come and the share price fell, were the PRs issued in good faith or did they include intentional material misstatements?
You are incorrect about the a/s. The Oct 25 filing increased it from 500 million to 750 million
You mentioned options and warrants but I have come across any information about this. Where did you find info about options on SFIO? Do you have information about other outstanding warrants?
I have a technical question about the entity dumping these shares onto the market: considering the float has increased by 150 million (30% of total shares) shouldn't the sellers be required to fill out a Form 4 stating that they were a 5% owner? Is that requirement waived for pink sheet stocks?
Lastly, I also agree that it is much more enjoyable to talk about things like dilution, patents, financials, and the existence of a Real ecig than it is to talk about the company's connections to prior securities frauds. I very much enjoy your posts when we get to discuss verifiable facts about the company.
SFIO does not own the patent.
note, this post has previously been deleted by an iHub admin without explanation. I am concerned that there is an admin who is attempting to censor honest due diligence on this company. This should be viewed as a MAJOR red flag to anyone coming to iHub for investment advice.
Patents are public information, if they owned the patent you would be able to prove it with a simple records search. You could easily prove me wrong if you were telling the truth.
Here is the patent application the patent is not yet approved rather it is in patent applied for status. The patent is not in the name of the company but rather it is in the name of Rober Wang and Peter Niehusen
WIPO defines patent applied for status saying:
Many companies label their products embodying the invention with the words “Patent Pending” or “Patent Applied For”... these terms do not provide any legal protection against infringement, they may serve as a warning to dissuade others from copying the product as a whole or certain innovative features
On December 21, 2008, we entered into an agreement to sell 100,000,000 shares of the Company’s Common Stock to Thomas Schoepfer and Robert Wang for licensing rights to certain patents regarding a smokeless nicotine delivery cigarette like device
In addition, SFIO does own the patent!
The company is not shorting its own stock.
They are creating new shares and selling them.
On 10/25/10 the company filed its intention to begin severe dilution. Since that filing over 150,000,000 new shares have become freely traded more than doubling the float. This is why when you look at the chart in the iBox you see the share price and accum/dist line taking a nosedive ever since that date.
In that filing the company also increased its authorized shares by 250 million.
Additionally, the CEO has sold 130 million of his personal shares according to public filings.
SFIO isn't selling any ecigs but it sure is selling a lot of stock
ecigs have won consecutive appeals rulings.
Right now you can technically freely sell ecigs in the US. There was a poster here last week who said he sells ecigs and that some shipments are still getting seized at the border despite the rulings.
The FDA has 90 days to file to the US Supreme Court from their last court loss a couple months ago. Someone posted here last week that they would be appealing but did not cite a source.
Pretty much its game over for the FDA and if SFIO has a Real product they should have no problem selling it in the US.
You only anticipate 300k in revenue? The company claimed $9.5 million worth of pending contracts for Q1 2010 only from Belgium, the Netherlands, and Luxembourg.
If they have that little revenue then the company is guilty of a pump and dump fraud by issuing intentionally misleading statements and then selling shares into those press releases.
There is no way that, given the orders and contracts announced in their press releases (some highlighted below), that they could have missed the mark by that much unless the orders never actually existed and the press releases were only issued to pump up the share price.
I believe that this is the reason why the company has not issued the financial statement that they promised would be out a month ago. The financial statement will either have to be doctored with phony sales and revenue figures in an attempt to match up with their PRs or it will be honest and will confirm that the PRs included intentionally misleading statements, a criminal act.
...or I guess there is the third option that the company and its product is Real. Lol.
Smokefree Innotec projecting Q1 sales for 2010
NASHVILLE, TN –12/10/090 — Smokefree Innotec, Inc. (PINKSHEETS: SFIO) (http://www.sfio.us or http://www.smokefree-innotec.com) President Thomas Schroepfer today announced that he is projecting anticipated sales in the Benelux countries for the first quarter of 2010 based on pending contracts in the $9.5 million dollar range with these relatively small countries...
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Smokefree Innotec Belgium Receives Initial Order
NASHVILLE, TN –02/23/10 — Smokefree Innotec, Inc. (PINKSHEETS: SFIO) (http://www.sfio.us or http://www.smokefree-innotec.com) announced today that its Belgian Branch Office for Europe, Smokefree Innotec bvba in Antwerp, received last Friday a significant order of 16,000 packs from an large wholesaler in the Benelux. Delivery of this order is planned for March 15th 2010...
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Smokefree Innotec fulfills first order for South Africa
NASHVILLE, TN–(03/04/10) – Smokefree Innotec, Inc. (Pinksheets:SFIO – News) (http://www.sfio.us or http://www.realsmokefree.com) announced today that it is shipping its first order of 19,000 units of smokefree product to Trifactor Distribution and Marketing (TDM) in South Africa.
...
Norman Knight of TDM commented: “We will place bi-weekly orders for South Africa with Smokefree Innotec for its exciting alternatives for the smoker’s market. We will additionally be launching in Australia and New Zealand sometime this summer and sales in Japan should commence in the 4th quarter”.
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SMOKEFREE INNOTEC PROJECTS DISTRIBUTION EXPANSION TO 125,000 OUTLETS
NASHVILLE, TN–(03/18/10), Mar 18, 2010 (M2 PRESSWIRE via COMTEX) — Smokefree Innotec, Inc. (Pinksheets:SFIO – News) (http://www.sfio.us or http://www.realsmokefree.com) released information today regarding its current projections. As previously announced, the line of credit granted by its European bank, and guaranteed by the Flemish government, is being finalized for Smokefree Innotec Inc. and is anticipated to be available for the company to draw upon within the next 10 days. Consequently, the company is coordinating immediate deliveries for its major distribution company presently under contract, servicing approximately 125,000 vending machines. Requests for delivery terms and conditions are also being received from additional European vending distributors.
All fundings for inventories are being provided by a combination of the bank financing underway plus purchase order financing being negotiated with various sources, in amounts adding up to a possible aggregate of $20,000,000. However, the company anticipates that customers anxious for deliveries will pay 60% up front at the time of the order, and the balance due upon shipment. The Company is ordering an additional one million filters to warehouse in preparing to meet this level of demand.
In reality, preliminary company forecasts conservatively estimate gross profits being generated of up to $1,750,000 annually[b/] based on selling only one pack per day from each machine that vends Smokefree Innotec products placed in operation by our distributor currently under contract. Although these estimates were carefully constructed to the best of our knowledge and information available at the present time, there can be no reasonable assurance to a prudent investor that the company will achieve these forecasts totally, even though it is equally possible they may be exceeded; please read the legal disclaimer stated below.
I am shocked that Tom is indicating that the Real ecig will likely be delayed.
The press release said orders would ship out by the end of March. Over 90 million shares have come online since that PR.
The reason why I have been posting about the importance of a setting a "no confidence date" where investors will sell their shares in the absence of a Real product and a financial report is because we know that in the absense of a product the company will continue to promise that it will be released 'soon.' While they are buying time they also will be selling shares.
I just talked to Tom again. I don't know why everyone is so down about SFIO. The intelligent people know that all accusations re Tom/SFIO are false. Most of you folks actually believe the people knocking down Tom/SFIO. Jesuz, you must have been born yesterday. The E-cig will be out end of March or 1st week of April. Tom will be taking to the filter company today. They are all set to go and excited about what's to come. I'm just sitting back and waiting. Also, regarding torrocco's (sp) accusation that a lady answered and said it wasn't the number, you better learn how to use a phone. Tom just called me back as I was typing this and told me he checked every number that came in yesterday and none were from investors. Every phone number was from an investment banker, attorney, or person he knew - no investors called. So folks, let's just cut out the bullshit - it's really getting sickening!
I'm really tired of responding to the false accustions but I guess someone has to fight back on Tom's behalf.
A note to those who have lost faith.
It is important to keep in mind that the spread on SFIO is 20% of its share price. If you plan on selling your shares it is best to do make your sales in parts at the ask. Of course, if no buying is going on at the ask your order might not get filled and the share price could drop lower. Additionally, as these paid pumps continue, providing definitive evidence of future selling pressure, it is possible that selling at the bid might allow the insiders and related parties selling at the bid to knock the price down making your orders go unfilled.
It is important to try to distance yourself from emotion as you see this share price falling toward the 000s. Always attempt to sell your shares in parts and to try to sell them at the ask. Watch the level 2 quote. When you see ETMM (a recreational investor) on the bid it is more likely that your orders will get filled on the ask then when other market makers are on the bid.
RAG, I am NOT happy to see the share price declining. I sincerely hope nothing more than that the company will come out with the financials it promised a month ago and the Real ecig that it promised by the end of this month. If you look at the short interest data you will see that nobody is short this stock (myself included.) I would love to be wrong about this because nobody stands to benefit from share price declines. I can assure you that I will never be buying shares of this stock. Logically, if I was merely trying to knock the price down I would probably not make such detailed incriminating posts as that evidence would not just disapear after I bought shares (which I have no intention of doing.)
Unfortunately, due to the multitude of due diligence that I have performed on this company I have come to believe that there is little to no chance that SFIO is actually legitimate.
I found this the Myth of the Paid Basher on another SFIO message board in response to one of BBB's posts claiming that someone telling the truth about the stock was a basher out for personal gain.
Previous filings showed that Tom had 200 million shares.
As of the most recent filing has 70 million shares.
I'm no forensic accountant but it seems to me like he has been selling.
First of all, what's wrong with that. And secondly, Tom has not sold any shares so stop accusing him of that. You certainly don't seem to know much about what's happening behind the scenes do you?
Everyone involved in SFIO is convicted of securities fraud, or has been closely linked to fraud. Many of them have been implicated in the NicStic/MWWM fraud where a vaporless ecig was promised but never brought to market. BBB, I would say that is quite relevant to SFIO's current situation.
Maddog: here is a link to Fuentes's conviction and prision sentence.
An open letter to Evert Wilbrink that I made about his and others involvement in prior scams (see my post for links to the sources of all of these claims)
Evert, I would like to publicly clarify posts that I had made about your involvement with NicStic, the ecig stock scam that stole $300 million from its shareholders.
I have previously stated that you were the CEO of NicStic. This is nominally untrue. I assure you that this was an honest mistake caused by the multitude of shell companies that have been used to perpetrate this fraud.
I erroneously misread the April 2005 press release with the headline "Evert Wilbrink Named as Chief Executive Officer of Metropolitan Worldwide; Will Lead Marketing of NicStic Smokeless Cigarettes on Global Basis" as saying that you were the CEO of NicStic. In the press release you stated "I am very excited about leading Metropolitan in its efforts to distribute NicStic smokeless cigarettes on a worldwide basis." This was likely the source of my confusion.
It is worth noting that MWWM's flagship (and only?) product was NicStic source. It is also worth noting that MWWM has since been folded into the Swan Group (SWNG) which has been implicated in pump and dump scams. source
It is worth noting that the director of SWNG is Mr. Berresheim who is also a principle in Perfect Entertainment Group. SFIO is currently paying Perfect Entertainment Group free shares for its PR work SFIO PR announcing hiring of PEG
Mr. Berresheim has been jailed and successfully sued for his involvement in stock scams source. It is my hypothesis that SFIO is laundering funds through Mr. Berresheim's companies.
I know that Tom and Evert read this board. Just as Evert accurately denied that he was the CEO of NicStic (he was just the CEO in charge of NicStic) and I urge the company to deny this hypothesis if it is untrue. I believe that since my hypothesis is true that the company will not issue such a denial.
Evert, I appreciate that you asked Pauly to post your denial of involvement with NicStic as it caused me to reevaluate my research and post this correction.
Ken is a convicted felon (securities fraud).
http://articles.latimes.com/1991-10-23/local/me-168_1_ventura-county
Oh, and I meant to ask... does anybody know who Ken Fuentes or Ullrich Remy are and what their connection to SFIO is? They are the contacts on the smokefree-innotec.com domain.
16 days until the company fails to deliver on its promise to begin shipping orders of Real ecigs. I am confident that they will fail to deliver on their promise because their alleged filter supplier AHN steadfastly denies any contracts with SFIO.
If you believe that the company will actually come out with this product as promised then you might want to stick around to see if the stock pops on the release. Given the pall of illegitimacy enveloping SFIO, proof of Real product should be a positive for the share price.
However, it is important to keep in mind that a new round of CRWE advertisements came out today. Someone paid $5,000 to pump the stock, something that is only done if they plan to later dump shares onto the market. We have see the float increase by over 90 million shares since the pumps began at the end of January and this purchase of new pumps can be taken as a definitive signal that the seller is not done dumping shares onto the market.
If you want to stick around for another 16 days you should accept the fact that there will be approximately 30 million new shares that come online during that time (estimate using historical dilution rate since the Oct 25 filing). Every investor must make his own estimates of whether there will be enough buying pressure or not to overcome those new sales on top of any sales that come from regular trading and discouraged investors cutting their losses.
If you decide to wait it out, the biggest risk to your investment is probably not what will happen in the next 16 days. The biggest risk is that when the company fails to deliver its Real product that you will buy into their story that the ecig will come out at the end of April instead. If you give them the benefit of the doubt again and hang around through April you will likely have to contend with an additional 50 million shares coming online. And then when there is no ecig at the end of April...
It is imperative that all investors have a no confidence date whereby they will sell their stake if the company still has not delivered on its promises. It doesn't matter if that no confidence date is tomorrow, March 31st, April 15th, or July. What is important is that you pick a date and stick with it.
If you fail to pick a date in advance you may find yourself on April 13th with a cheap looking share price of $0.0025
and a new promise that the Real ecig will be out by the end of April... I'm sure you can see that this becomes a vicious cycle that winds up with you holding the bag waiting on an ecig that will never come.
I hope the company proves me wrong. They do allegedly have 20,000 sample filters from AHN. I am not sure why they aren't using those to bring the product to market. Maybe it is more than just the filters that are not Real.
17 days left in the deadline to get their product out on the market and to present a financial report. Just 17 days. And your thinking about selling now? Isn't that worth staying for the ride? Only 17 days to see what we have here.
-Disher
The tender offer fairy tale:
I am also trying to grasp onto any semblance of hope in this situation but logically there is just no chance that a tender offer would happen when this stock gets unhalted. It would be healthy for those holding onto that hope moved past their denial.
Imagine the best case scenario where Deloitte was scared off by a minor inconsistency but the earnings are really $3/share and cash is $4.88/share. Would you buy a stock with those metrics at $10 today? Probably, that seems almost too good to be true. What if you had knowledge that the stock was going to drop to $4 tomorrow? If you knew that, then you would wait for the drop before buying. This isn't even investing 101, its logic 101.
Even if the company took seriously its fiduciary duty to shareholders it is illogical that they would pay more than twice what they have to in order to buy back shares. They would rather pocket the difference after their legal expenses.
We have a company that has consistently put its shareholders best interest aside. There is simply no chance that they are going to decide to be charitable upon the unhalt and pay us substantially more than the market would dictate for our shares.
We have a better chance in getting a $0.10/share rebate in a lawsuit. Thats my best case scenario.