Bashing silly penny stocks
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SIGO 4.671 MILLION UNRESTRICTED SHARES
http://www.otcmarkets.com/stock/SIGO/profile
A few weeks ago, the unrestricted shares was 4.03mm, now its 4.67mm. It's up because the company is selling shares at a dime.
I don't have those details, but she is married to someone who got $3mm!
Interestingly, her husband's name was on the shell previously too back in early 2016:
https://www.sos.state.co.us/biz/ViewImage.do?fileId=20161283604&masterFileId=20051365777
The same guy and same address, lol, as Novus Group LLC (the buyer of 4mm shares at $0.00275 per share, or $11,000, that sold the shares for $3mm).
So, no examples of "fabrication"
Not surprised - everything is sourced.
SIGO officer and director at time of merger, Anastasia Shishova - sourced
Her husband - sourced
His public company, his name on SIGO documents (lease) and Novus documents - sourced
S-1 permitting sales at a dime - sourced (and shared BEFORE it happened)
Again, please share any alleged "fabrication"
Please explain the fabrications:
when you fabricate the very information you spew to others.
So true:
It is a valid business, a tour is not required to proof that.
The behind the scenes shuffling of paperwork and money is what you will not see.
The stock has declined from a high of 2.25 to a low of 0.57, all with the "tight float", though it has expanded by 16% recently. The float doesn't appear to be that tight, and the company is actively selling shares (at ten cents).
A house built on a foundation of quicksand will not stand for long...
Shorts on SIGO will have to pay $50, lol. That's not per short but the TOTAL (50K shares at .001 per share). I don't know why that would matter to anyone.
I have never traded SIGO, nor will I ever trade SIGO, but it is a great stock to use as a lesson on pump and dumps.
SIGO NEW CLOSING LOW SINCE 8/21 PEAK
I have been closely following this on since 8/19, and this was a new closing low today.
I think the stock is headed to $0.30-.40 after they file the 10-Q.
HERE IS WHY
SIGO DOESN'T ANSWER QUESTIONS
I have left voicemails and emails with the company, but there has been no response.
I have learned that the phone number is a service provided by a third-party (also in San Clemente). You can ask for Pat McGroin at Sunset Island, and they will take a message (that won't be returned). The voicemail for the company goes into a single box, making it impossible to leave a message specifically for Danilo TJ Magallanes, Valerie Baugher or anyone else. Try it: (424) 239-6230
The office in San Clemente is a USPS storefront.
I tried to look at the company instagram, but they didn't approve me. They did follow me instead.
I think SIGO is one of the biggest scams I have seen. Many think that because it has some appearances of reality that it can't be a scam, but this is how scams work. There is always enough to convince someone that it is real. Like today's lab reports. Sure, there is cannabis, but who makes the money off of it and how that is done is not necessarily what many might believe. Already the company has hidden the identities of the people pulling the strings and their ongoing financial relationship with the company.
Stay tuned. We will get to the full truth over time.
DISTURBING REACTION TO "GOOD" NEWS
The stock has been under pressure despite lots of "good news". I think it's as simple as this:
Maybe people are worried about all the shadiness...
My best guess:.30-.40 after 10-Q filing.
Great observation - at 2:25 ET there are just 118K shares having traded. The VWAP yesterday was $0.75. It is lower today at $0.68 (the VWAP is the average price weighted by volume, for those not familiar).
I agree - something doesn't add up, as the excitement isn't matched by activity in the stock. If the company gets impatient, it will push the stock a lot lower by selling those 10-cent shares.
SIGO FLOAT IS EXPLODING
It sure looks like even more shares are being dumped at a dime to buddies of the company so that they can unload them into the market for big gains, but for now, all we know is that the company has sold 640K shares at a dime. This has pushed the float higher by 16% to 4.67mm from 4.03mm less than a month ago. The last update was as of 8/31, so this increase was from 8/24.
Not sure how the S-1 works? It's explained here: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=134154183
The company has also siphoned off $200 per pound right off the top, perhaps 15% of PERPETUAL REVENUE. This was financially stupid - the debt that they exchanged for this security was zero-interest until 12/31 and at just 5% for 2018, when it became due. If management had half a brain and any confidence in their forward-looking pie-in-the-sky projections, they would have maintained that debt and NOT issued this security. It may be the stupidest financial transaction ever!
The valuation here is high. There are 50.67mm fully-diluted shares, which takes into account the 46mm shares that could be converted instantly by management, which holds 4.6mm Series A Convertible Preferred. This security pays dividends and has votes, and if the company were to ever show a profit, they would have to be reported as if they were outstanding (fully diluted shares). Even at .64, this is a joke! $32mm for a company that has no assets and has generated less than $200K to date (not officially - we won't know that until the 10-K is filed in January). maybe the file early, lol.
So, terrible chart, terrible technicals of exploding float, and terrible valuation, but it gets worse:
LOTS OF SHADY DEALINGS AT SIGO: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=134519170
DID SIGO SELL MORE SHARES AT $0.10 YESTERDAY?
SIGO was smacked down hard yesterday. Looks like more selling of the shares at $0.10.
For those not familiar, the company has announced the sale of 640K shares at $0.10, but it can sell a total of 20mm.
This constant pressure on the stock will push it to $0.35 soon in my view
Hopefully the SEC doesn't frown upon yesterday's apparently illegal solicitation or the many other signs that this is a scam, as then all bets are off.
SEC WILL SUSPEND SIGO
SIGO scammers made a lot of mistakes in their S-1 filings, misleading the SEC. The SEC recently busted four companies for doing the exact same thing. How stupid these people are. Anastasia Shishova, the sole officer and director of SIGO, had dealings with her husband but hid them from the SEC. What an idiot.
Transparent? These liars hid the truth about the scumbag penny stock clown pulling the strings here. They lied to the SEC. Shareholders will lose the rest of their money here whether or not the SEC shuts them down. SIGO will continue to sell 10-cent shares as long as people are insane enough to pay $0.93 or $0.75 or even the $0.35 where I think this is headed.
IT IS RARE TO SEE SUCH A SCAM
SIGO is one of the worst cannabis stock scams I have seen. Sorry, but everyone will lose everything here in my view due to the greedy people pulling the strings. They already pulled out $3mm, but that's apparently not good enough.
This one is tainted by the husband of Anastasia Shishova, the former officer and director of SIGO who lied to the SEC along with the current officers and directors, Danilo TJ Magallanes and Valerie Baugher. Failure to clearly explain who was the owner of those 4mm shares was fraud.
Whether or not the SEC will act and shut these scammers down is hard to say, but they should. They clearly misled the SEC by concealing related-party transactions. I also continue to wonder whether or not Valerie Baugher is actually involved with the company. She certainly has no qualifications.
SIGO is built on a foundation of quicksand. Now they continue their orchestrated pump and dump, selling shares at $0.10 to their buddies. Not sure why anyone is a willing participant in this scam.
My call for $0.35 wasn't for today but by month-end, perhaps earlier once the 10-Q comes out (no revenue, big loss, lots of spelling errors, several lies). Maybe it wasn't clear:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=134508426
VERY UNLIKELY THAT SIGO CAN CROWDFUND
There are exemptions through crowdfunding, but SIGO hasn't yet filed for any. There is no REG D or REG A+ filing at this time, nor was it mentioned. It really can't be a REG A+ filing, because that has to be registered first and would take some time as well.
https://www.nyse.com/regulation-a
A COMPANY LOOKING TO PURSUE A REG A+ FILING WILL NEED TO:
*Assemble a team of professionals for IPO preparation. At minimum, that team will include: company counsel, independent auditors and consulting accountants, underwriters, underwriters’ counsel, transfer agent, and other advisors and service providers for certain aspects of the IPO process.
*Submit an offering memorandum to the SEC for approval for distribution to offering participants. Non-accredited investors may participate in a Reg A+ offering.
*Raise a sufficient amount and take other actions that allow the company to meet all listing requirements. In many cases, companies will qualify for listing even if the amount raised is less than the $50 million maximum offering size permitted under Reg A+.
*Comply with the rules applicable to listed companies, including filing annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC.
Under Rule 506(c), a company can broadly solicit and generally advertise the offering, but still be deemed to be undertaking a private offering within Section 4(a)(2) if:
The investors in the offering are all accredited investors; and
The company has taken reasonable steps to verify that its investors are accredited investors, which could include reviewing documentation, such as W-2s, tax returns, bank and brokerage statements, credit reports and the like.
Any shareholder may purchase shares of the Series B Preferred with a minimum purchase of $1,000.
Item 8.01. Other Events
On February 25, 2017, the Company began discussions to exclusively license and private label a breakfast product that has previously generated $20 million in sales. The product has been sold in over 3,000 stores including CostCo, WalMart, and Target. The Company is expecting to complete the license agreement within the next two weeks. Once the agreement is in place and a new label has been approved, the Company can begin selling the product into grocery stores and box stores throughout the United States.
YES, SIGO IS A RIDICULOUS WASTE OF TIME
It will be interesting to see if the company sells this unregistered security to "anyone". That would be a clear violation of federal securities laws, which require private placements to be sold to only accredited investors.
If they are going to sell Series B and cancel the outstanding S-1 (that allows them to sell shares at $0.10), then that would be a positive. Doubt that will happen!
These guys are saying whatever they can to get people to buy the stock so that the guys that buy at $0.10 can make bank.
Why pay $0.73 when SIGO is dumping shares at $0.10???
Whether or not Novus sold the shares (they did) isn't the point. SIGO withheld the truth from the SEC
Worst case: They are liars and get caught
Best case: They are liars and don't get caught
EVIDENCE IS MOUNTING THAT SIGO IS A SCAM
No one in their right mind puts out the kind of 8-K that SIGO issued today, soliciting investors. This is yet another red flag. There are plenty.
1) SIGO withheld the true identify of the buyer of 4mm shares that was able to take out profits of $3mm after the S-1
2) This buyer was the husband of the SIGO director and officer, Anastasia Shishova, at the time the shares were acquired - SIGO failed to disclose this info
3) Even CFO Valerie Baugher may be fake
I continue to think that even if the SEC doesn't shut these folks down, the stock will keep crashing on its own inertia as the company dumps shares at $0.10. SIGO is headed to $0.35 in my view.
SIGO MAKES ILLEGAL SOLICITATION
In an 8-K, SIGO says:
The Company has received number of inquiries into the new Series B Preferred Stock. The Company felt it was appropriate to answer the questions through an 8-K instead of emailing the individuals directly.
Below are a few points on the Series B:
(1) The Series B Preferred Stock was created to allow the company to raise additional capital to expand without having to use convertible or toxic type of debt.
(2) The shares have no voting rights or conversion rights.
(3) The owners of the Series B Preferred shares receive a quarterly dividend of $200 per pound of cannabis sold. The dividend will be distributed on a percentage basis based on the number of outstanding shares owned.
(4) Any shareholder may purchase shares of the Series B Preferred with a minimum purchase of $1,000.
(5) The Company will provide additional details on how shareholders may purchase shares of the Series B Preferred.
CALL SIGO
Wow, just wow!
First I called to ask for the CFO and President, Valerie Baugher. The cheerful receptionist said she was unavailable and asked if I wanted voice mail. I said sure and was transferred to the GENERAL VOICE MAIL for the company (I think this woman doesn't actually work at SIGO).
Then I called back and asked for Joseph Wade. A different receptionist put me on hold, checked and said Wade wasn't available. He asked if I would like his voice mail, but I asked if I could speak with TJ Magallanes. He said TJ isn't available and offered me voice mail or email, so I said email. Info@sunsetislandgroup.com.
I called a third time - different receptionist. I asked for Wade and was put on hold. "He's away"
Want to verify? Call (424) 239-6230 and check it out.
What a bogus company... Not surprising since their headquarters is a USPS mailbox in San Clemente, CA
SIGO WAS DUMPED AFTER NO ONE SHOWED UP
The first 15 minutes saw minimal volume, and then the sellers unloaded. The volume-weighted average price is .7813, so shares traded on average down 16% from Friday's close. The volume took place below .80:
The sellers are probably the same folks who get to buy the SIGO ten-cent shares
SIGO HID THINGS FROM THE SEC
Maybe there is a "Brian Weigel" who was involved with this entity that the company mentioned in its S-1, but, even if so, the company disguised the involvement of the real people behind it, including the guy who is the husband of the woman, Anastasia Shishova, who was the sole officer/director of SIGO when it acquired Battle Mountain Genetics.
YOU CAN'T BUILD ON A FOUNDATION OF QUICKSAND!
I believe that the company may have a fake CFO/President too, but, again, I can't prove it yet. Still, it's odd that an employee of Von Baron Farms had never heard of her alleged boss. SIGO had a responsibility to accurately describe the biographies of its officers and directors, and this is very weak:
Ms. Baugher was appointed as our President, CFO, and Director on October 30, 2016. Since September 2015, Ms. Baugher s worked as Manager of Dispensary Relations for Von Baron Farms, a medical marijuana edible company. From 2005 through September 2015, Ms. Baugher worked as a consultant for various business in California. Ms. Baugher’s consulting services related to general business and marketing. Additionally, In March 2014 Ms. Baugher was located in Oakland, CA consulting in the medical marijuana industry. Ms. Baugher relocated to the Sothern California area in October 2016 to begin working with Mr. Magallanes with regard to the Company’s operations Ms. Baugher, has a B.A.in history from California State at San Marcos. Ms. Baugher background in the medial marijuana industry led to our conclusion that he should serve as a director in light of our business and structure.
SIGO'S MOST DANGEROUS DECEPTION TO DATE
The SIGO S-1s never disclosed a penny stock scammer as being behind the registrant of the 4mm shares, Novus Group, LLC. Instead, they made up a fake person, Brian Weigel.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11767761
Mr. Brian Weigel, an US resident and citizen exercises the sole voting and dispositive powers with respect to the shares of the Registrant's common stock owned of record and beneficially by Novus Group.
NOTICE OF EFFECTIVENESS
Effective Date: January 19, 2017
Form: S-1
CIK: 0001689066
Company Name: Sunset Island Group
File Number: 333-214643
SIGO SHARES ARE FOR SALE AT $0.10
How many shares will SIGO dump on the market this week? So far the company has sold just the first 640K, but it has 20mm that it has registered to sell at 10 cents a share:
This constant pressure on the stock will push it to $0.35 soon in my view.
N0, SIGO DID NOT SELL SHARES AT $0.85
It should be clear now that the $340K the company announced that it raised by selling 400K shares (now 640K) was at $0.10 and the balance was the is other security. Here is what is important to remember:
THE COMPANY CAN STILL SELL 19.36MM SHARES AT $0.10
The way I believe it works:
1) Company borrows $300K from Joseph Wade
2) Company sells Joseph Wade 640K shares for $64K ($0.10 per share)
3) Joseph Wade sells these free-trading shares into the market for let's say $0.80. This is a profit (pre-tax) of $448K (after tax about $300K)
4) Joseph Wade takes Preferred B, giving him 15% of REVENUE (not profits)
Wash. Rinse. Repeat. This could go on for a long time! Wade ends up getting his cash back AND 15% of the top-line . Will we see a Series C next?
BOTTOM LINE - WADE AND CREW ARE SIPHONING OFF BIG CHUNK OF REVENUE
SIGO SUB-PENNY AFTER SEC SHUTS IT DOWN
The people running this company lied to the SEC in many different ways. Lots of undisclosed related party transactions. SIGO doesn't even hold the lease that it claims. It's held by "VBF Brands"
This is how it works: The SEC suspends trading for 10 business days and issues a complaint.
Learn more here: https://www.sec.gov/investor/alerts/tradingsuspensions.pdf
Why would the SEC suspend trading in
a stock?
The SEC may suspend trading in a stock when the
Commission is of the opinion that a suspension is
required to protect investors and the public interest.
Circumstances that might lead the Commission to
suspend trading include:
• A lack of current, accurate, or adequate
information about the company, for example,
when a company is not current in its filings of
periodic reports;
• Questions about the accuracy of publicly
available information, including in company press
releases and reports, about the company’s current
operational status, financial condition, or business
transactions;
• Questions about trading in the stock, including
trading by insiders, potential market manipulation,
and the ability to clear and settle transactions in
the stock.
The trading suspension may raise serious questions
and cast doubts about the company in the minds
of investors. While some investors may be willing
to buy the company’s stock, they will do so only at
significantly lower prices.
Why would the SEC suspend trading of a stock when it knows that such action will hurt current shareholders?
The SEC suspends trading in a security when it is
of the opinion that the suspension is required in the
public interest and to protect investors. Because a
suspension often causes a dramatic decline in the price
of the security, the SEC suspends trading only when
it believes that the public may be making investment
decisions based on a lack of information, or false or
misleading information. A suspension may prevent
potential investors from being victimized by a fraud.
SIGO 8-Ks are full of lies
These first two helped the scammers dump most of the 4mm shares to score $3mm in gains.
Item 8.01. Other Events
On February 11, 2017 the company began discussions to develop a CBD product line. The company would develop the CBD product line to sell online and possible through other online and brick and mortar retail channels. The product will be developed by trained French Chef and with over 20 years’ experience in Product Development and Food Production and who also has developed products from their concept stage to national distribution that have generated over $100 million in sales.
Item 8.01. Other Events
On February 25, 2017, the Company began discussions to exclusively license and private label a breakfast product that has previously generated $20 million in sales. The product has been sold in over 3,000 stores including CostCo, WalMart, and Target. The Company is expecting to complete the license agreement within the next two weeks. Once the agreement is in place and a new label has been approved, the Company can begin selling the product into grocery stores and box stores throughout the United States.
Item 8.01. Other Events
(1) The Company is filing permits in Northern California for up to 22,000 square feet of greenhouse space to begin its growing operations. The 22,000 square feet is expected to be able to generate up to 4,000 pounds of medical cannabis per year. The price per pound is currently $1,000 to $1,750. The Company expects the first harvest to occur in July/August 2017.
(2) The Company has completed the design of the label for its CBD/Hemp Dietary supplement and is expecting the website to be completed within the next 60 days.
(3) The Company has completed a private label deal with its supplier that includes products such as CBD/Hemp Energy Shot and CBD/Hemp Pain Reliving Cream. Pursuant to the deal, the supplier will produce, label, box the products and ship finished products to the Company. This alleviates the need for the Company to acquire equipment to manufacture the product and allows the Company to produce products in any necessary quantity that is required.
AGREED! YES, SIGO IS A SCAM WEED COMPANY:
compare to other scam weed companies
ANOTHER HUGE LIE FROM SIGO?
From the 10-Q: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12132666
NOTE 5– NOTE PAYABLE
The Company entered into borrowing arrangements with a third party not related to the Company. The notes are due on December 31, 2018. The notes accrued interest at 0% for the initial 9 months and then 5% on annual rate thereafter.
The Company has begun discussions to convert the note payable into an investment into the Company’s grow operations through a possible joint venture agreement.
GIVING BACK $3 MILLION AFTER LYING?
Will Anastasia Shishova, who was SIGO's sole officer and director, have to give back the $3mm she and her husband made after not properly disclosing the relationship in the S-1?
Meet Anna:
This is the lady who controlled SIGO just a year ago:
On October 17, 2016, the Company entered into an Agreement whereby the Company acquired 100% of Battle Mountain Genetics, Inc, in exchange for 50,000,000 shares of Sunset Island Group common stock. Immediately prior to the reverse merger, there were 30,894 common shares outstanding and no shares of Preferred shares outstanding and Anastasia Shishova was the sole officer/director.
The day to day operations of the stable are managed by our trainer with Joseph Wade (Mr. Wade is the husband of our CEO) as the licensed person for the stable. Ms. Shishova is currently in the process of becoming the licensed individual.
The Company acquired NG Advisors from its members on February 23, 2017. As part of the acquisition, the members of NG Advisors didn’t receive any additional stock or cash from the transaction. The members already were the majority shareholders of the Company and owned 100% Series F Preferred Stock (held by Wade Billington Partners).
SIGO IS A PONZI SCHEME
A Ponzi scheme (/'p?n.zi/; also a Ponzi game)[1] is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. Operators of Ponzi schemes can be either individuals or corporations, and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.
Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.[2]
SIGO NEAR-TERM PRICE TARGET $0.35
SIGO will continue to dump shares at $0.10, having so far sold only 640K of the 20 million that it is permitted to sell. This will pressure the stock as the float explodes. This stock has already dropped like a rock for three weeks now:
At $0.35, the stock would still be trading at more than what it is really worth, but that is the case with many penny stocks. The current fully-diluted share-count of 50.67mm (heading higher) means that at $0.35 the fully-diluted market cap that takes into account all options, warrants and convertible securities, would be $17mm.
Of course, all bets are off if the SEC wakes up and sees how the company withheld material information in the S-1s about the undisclosed related parties like former SIGO officer and director Anastasia Shishova and her husband, who controlled Novus Group, LLC (that pocketed $3mm on an investment of $11,000).
SIGO LONG-TERM TARGET: ZERO
SIGO SHAREHOLDERS ARE HOSED AGAIN!
Here is the 8-K with the terms of Preferred B. Wow!
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12272477
On September 8, 2017, the Company converted its note payable into its new Series B Preferred Stock. The Preferred Stock has no conversion right or no voting rights. The shareholders of the Series B Preferred will be entitled to $200 per pound that is sold by the Company. The Company issued 305,700 shares for the $305,700 note payable.
EVIDENCE THAT SIGO CFO BAUGHER MAY BE FAKE
SIGO describes its President and CFO Valerie Baugher in its filings (not on its website):
Ms. Baugher was appointed as our President, CFO, and Director on October 30, 2016. Since September 2015, Ms. Baugher s worked as Manager of Dispensary Relations for Von Baron Farms, a medical marijuana edible company. From 2005 through September 2015, Ms. Baugher worked as a consultant for various business in California. Ms. Baugher’s consulting services related to general business and marketing. Additionally, In March 2014 Ms. Baugher was located in Oakland, CA consulting in the medical marijuana industry. Ms. Baugher relocated to the Sothern California area in October 2016 to begin working with Mr. Magallanes with regard to the Company’s operations Ms. Baugher, has a B.A.in history from California State at San Marcos. Ms. Baugher background in the medial marijuana industry led to our conclusion that he should serve as a director in light of our business and structure.
I didn't work for the company for very long. Only maybe like 4 months. I was just helping TJ out doing demos at dispensaries
SIGO IS EXTENSION OF VON BARON FARMS SCAM
The two directors/officers of SIGO, CEO Danilo TJ Magallanes and President/CFO Valerie Baugher, formerly worked at Von Baron Farms, which was owned by another penny stock. The effort was an epic fail, a true pump and dump with minimal sales generated despite the many press releases issued by the company.
What is shocking is that the Von Baron Farms Chief Sales Officer, Magallanes, and the Head of Dispensary Relations, Baugher, would dare to show their faces in another public company after that disaster. Further, there are a lot of connections between that scam company and this scam company. Just look at the lease filed in SIGO's S-1:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12195440#SUN_EX101_HTM
As described herein, Tenant, at its sole election, shall be permitted to sublease to one party only, namely to the California cannabis collective operating as VBF Brands, Inc.