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I agree that the PRs stated that SUTI purchased 2% of CANNA. Presumably this is 2% ownership of the business.
What is not known:
What consideration was paid by SUTI in return for that 2% stake. Cash? SUTI stock? Promises by Eddie that he will mop up at night? None of this has been revealed.
As any small business person knows, even assuming that there is a profit (unlikely after the federal tax burden kicks in) then there are a million ways that the operating partners can manipulate the bottom line to show a bottom line of 0. Someone drew a parallel to a movie star accepting a percentage of the NET. There is never a NET.
If you don't know how that's done then ask any 8 year old that has operated a lemonade stand.
Jorge's resume is essentially non existent. He had two failed stores that sold crystals and potions.
Other than that we know he's not a very good dancer and nothing else.
Oh, wait, some people here say he's a good father. Could very well be.
Your dubious non-substantiated claims of profits aside, do a little research on the TAX SURPRISE that dispensaries got from their tax preparers this year.
It's not a profitable business...AFTER FEDERAL TAXES.
Between the federal taxes on this assumed revenue (IRS does NOT allow deduction of ordinary business expenses such as RENT, SALARIES, UTILITIES, INSURANCE, etc.) and the "consultant fees" drawn off by Eddie and the "miscellaneous expenses" incurred by Jorge this deal will be cash flow negative for SUTI. Canna will be begging Jorge for a cash infusion within 6 months.
Let's get those 3 million in liabilities spun off pronto so there is room for new liabilities.
My best guess: if Eddie ever does come up with financing and if Canna turns a profit (both unlikely) then Eddie will foreclose on his loans and will own the dispensary...lock, stock and Ukrainian barrel.
Uplifting indeed. As that "news" website states:
Eddie does business with Eddie companies all the time.
Immediately coming to mind:
* Super duper imaginary software that had been owned by PRPM and was sold to TDEY for some sort of compensation that I can't recall.
* HEMPSTER domains that were sold by Eddie personally to PRPM (or was it SUTI) for some sort of compensation that I can't recall.
* Imaginary financing from Eddie's venture capture firm to SUTI for some sort of compensation that I might be able to recall if it was disclosed to shareholders at any point (it was not).
More inter-Eddie transactions coming down the pike to be sure!
Eddie is Eddie's best customer, his best vendor and his best bankroller!
My money (sitting safely in my pocket) says that I am right and that you (with money sitting in Eddie's pocket...or, more accurately spent on wine and cheese) are wrong.
Exactly. It's like when people have a criminal record that they don't want others to know about. They change their name and then a google search of the new name comes up clean. Maybe shows charity work (homeless shelter or pet clinic) but nothing negative appears.
That's the plan here as well.
Please add to the FANTASY LIST the spin-off of the millions in SUTI liabilities. Eddie says that a magical entity will accept these debts leaving SUTI free from all obligations.
Reading is hard. The discussion was about the prior RS which took place in October of 2014.
Are you referring to the 1:100 reverse split that Eddie quietly pulled on this ticker on October 4, 2014?
Indeed the price spiked up. And then, the market opened.
There is a difference between HOPING that someone loses their money and stating that someone DESERVES to lose their money.
Milt and others are indeed trying to warn the gullible that your money ends up in Vakser's well lined pockets.
No one is stopping you from investing or speculating.
Some have to learn the hard way.
SUTI is about dreams, not details.
The SUTI CEO doesn't believe it important to provide critical information about the "deals" he has consummated.
SUTI followers don't believe that spelling is important except the SPELLING that causes delusion.
Have faith in your own choices, friend. You shouldn't worry about my affirmation or lack thereof.
Your artistic skills surpass your command of the English language.
"Once who stayed behind"
Oy.
KAM: On top of everything else, IRS regulations prohibit dispensaries from deducting expenses other than direct cost of goods sold (eg: what they pay for product).
Rent: Can't deduct
Salaries: Can't deduct
Utilities: Can't deduct
Insurance: Can't deduct
Company cars: Can't deduct
Dispensaries that were in business during 2014 got a nasty tax bill this year when they realized that the federal taxes were more than the profits!
SUTI paid who-knows-what for an operation that almost certainly will need ongoing cash infusions to stay in business.
DUMB DUMB DUMB!
Don't look too carefully or you will see the JAILBASE.COM watermark on the Eddie photo.
Best to increase the settings on your sarcasm detector.
No revenues, but lots of expenses for tickets to DA MOON!
Just don't look behind the SUTI curtain. You may not like what you see.
HA HA. Exactly what I'm asking for Smarty Pants. Facts.
Milt: How can you say that the CANNA deal isn't a positive?
The last time I went in to buy a car the salesman told me how happy I would be with new wheels. The car was really shiny and it had a radio that picked up lots of stations.
When the sales agreement was put in front of me I was asked to sign here, initial there. The monthly payment field was blank. I asked that the number be filled in before I signed but the salesman said that he would take care of it later. All would be revealed in due time. I walked out.
Do you think it possible that Jorge hasn't told SUTI shareholders the cost of the 2% share because the fields on the contract were left blank when he signed it?
Lots of hyperbole here. A few factual statements now and then shouldn't hurt anyone.
FINRA is NOT a government service. It is an industry regulator.
I hope the workaholic isn't ignoring the Eco-Vape business, his Kolbe business or his plant "babies."
Maybe Eddie will see the CANNA web site and offer to put his talented HEMPSTER software development team on the project.
In exchange for 22% of CANNA, of course.
It's fair to assume that CANNA is a private company. Valuations are difficult, if not impossible, under those circumstances. The 2% is worth such a pittance that I wouldn't stay up at night worrying about daily fluctuations.
Your question about "what did SUTI pay" is extremely relevant. How can you announce the purchase of something without includeing details such as the purchase price (in US Dollars, in shares, in drachmas).
There is also substantial room for a conflict of interest between Jorge's role as a SUTI officer and his ownership of Eco-Vape and other non-SUTI assets.
Transactions need to be at "arms length" but this one may not have been.
Did Canna agree to include Evo-Vape products in their dispensary?
So, you must know what YOUR company paid for a 2% share in CANNA.
Do enlighten us.
Write Jorge a check. You can be sure that he will cash it. You might even get on his Christmas card list.
What you receive in return for your money, well, blind trust seems to be the watchword here.
GLTU.
What makes you think that those plants belong to SUTI?
One of the uncertainties expressed here is the grey area between Jorge's personal dealings and those where he represents the shareholders of SUTI.
Evo-Vape = Jorge
Kolbe = Jorge
Plant "babies" = Jorge
There are Jorge assets and there are SUTI assets. The two are not the same.
Recall that federal regulations prohibit dispensaries from deducting regular business expenses such as rent, salaries, utilities, etc. Per the DD that I provided earlier, come tax time these businesses have proven to be a BUST.
Pun intended.
Thank you, Rick.
Looks like Eddie may be on a product sampling tour.
Which of these is actually from AURI? I'd like to make a purchase to show my support for the company.
Someone please tell Eddie that the website for the company is www.protekcapital.com . His PR from yesterday shows the site as www.protkcapital.com
Indeed. An old fart with all the retirement money I need and the ability to spell and use proper punctuation.
Stay in school, kiddo.
Emojis?
Wouldn't ride a rice burner and don't use emojis. Sorry.
Did you spend 5 minutes reading the article?
If needed I can have it spelled out phonetically for you. With cartoon pictures and everything.
Dispensaries may bring in revenue but as a business they are a money LOSER.
http://www.usatoday.com/story/news/nation/2014/11/03/irs-limits-profits-marijuana-businesses/18165033/
Milt: As I recall, Mr. Saenz was the proprietor of two retail stores that sold aroma therapy and spiritual healing products. Both locations have subsequently closed.