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What is "silly" in the quote you posted? PLease precise. The PR release didn't address anything in the statement you quoted.
Please make concise posts for clarity's sake.
Are you telling me that it is clear from the 8K that Saleen is losing the ownership of the company?
Are you telling me that you read the 8K and you tought "OH right, this will change Saleen's float completely"?
This 8K was purposely cryptic.
No mention of who the noteholders are? You have to go back to the June 2013 note and even then it's just the name of the holding entities. No indication of the effect it will have of Saleen's float of shares.
They don't even precise who are the 2 noteholders out of the 10 that are putting the new money in.
But please enlighten us. What do you think this 8K means?
What sounds silly? I pointed out that Saleen just delayed their unveiling and they did, period.
I havent commented of the frequency of such delays. Although I find useless comparing the launch of proprietary vehicle to a tuned vehicle. It's just not the same thing at all.
The thing is theat Saleen is competing with other tuners and all the other tuners already came out with their 2015 mustang. Hennesey, Roush and Galpin are all months ahead of Saleen.
Saleen delayed the unveiling of the 2015 Saleen Mustang Black label by another month.
At the LA Auto Show they said it will be unveiled on the 20th of February and now it is pushed to the 20th of March: http://events.saleen.com/
They were suppose to be shipping the White Label since December, but no one as seen a production model and they don't plan to unveil anything until now the end of March.
They are coming in 4-5 months behind Roush, Hennessey, Galpin and others.
Steve Saleen lost control over his company.
SLNN just released a very cryptic 8K. I am having difficulties decoding it and I think that is on purpose so if anyone has more input about it please share, but what I understand is that Saleen is changing the term of a 2 years old note resulting in the noteholders receiving a ton more shares.
During the reverse merger organized by David Weiner, Saleen issued notes for $3,000,000 at a conversion rate of $0.075 per share for 40,000,000 shares to David Weiner and his friends which he brings in all his deals including those under investigation by SEC (PHOT). Now Saleen changed the conversion rate of the notes to 70% of the 3 lowest volume-weighted average prices trading days subject to a $0.02 floor. If the conversion was today, they would already hit the $0.02 floor. This would mean a conversion to 150,000,000 shares. SLNN currently has 153 million shares issued. This would literally double the float. On top of the multiple other notes owned by Weiner and friends, this would give them complete control over the company at maturity.
So much for "Saleen is looking for a buyer to revive the company". This is it. Saleen changes ownership with a slight amendment to a 2 years note. No announcement or anything. Just a 8K.
Volumes are low or inexistent and the bid hasn't moved in 2 days. It looks like we are close to the end. No one is buying the scam anymore.
Yeah right. No one is making profit on SLNN, but the ones that got the shares through the merger.
SLNN went up 19% today on a 1,500 shares trade. that's worth $45. If someone is making money on this, it's literally DOZENS OF DOLLARS.
Nope. Nothing good to come FOR SLNN INVESTORS. A lot of good things to come for the general good of the OTC market though. Like getting rid of the fraud that is SLNN for example.
Please. Look at the spread and tell me buyers are undercuting other buyers.
This is ridiculous. A CEO of a publicly traded company would never commit to a precise stock price and more importantly to a date at which it will reach that price.
Saleen is doing business with some shady people
The fact that Saleen has been raising more debt is not new information. We all know Saleen has been raising more debt. Now we just know who has been helping them.
Michael Waldman and Richard Zaremba at DebtCraft
These guys are closely involve with David Weiner the marijuana pennystock financier who brought Saleen public. Zaremba is the marketing director of W-Net, Inc. Weiner's fund.
But other than having ties with the person responsible for bringing the company public, who are these guys helping Saleen issuing debt?
All the following information is public information about people working with Saleen:
Richard Patrick Zaremba is a sex offender:
https://i.imgur.com/N8Z3grX.png
https://i.imgur.com/D20dboP.png
you can verify the case numbers: http://apps.supremecourt.az.gov/publicaccess/caselookup.aspx
Michael David Waldman saw his broker license get revoked in 2010.
http://www.dre.ca.gov/files/pdf/reb/rebfall_10.pdf
Waldman, Michael David (REB, REO)
Effective: 4/30/10
Officer of: NXT Equities, Inc.
Violation: 10159.2, 10177(h)
Right to RREB license on terms and
conditions
Review of Waldman's real estate business:
http://www.yelp.com/biz/michael-waldman-nxt-equities-inc-los-angeles
Waldman was also charged criminally:
https://i.imgur.com/ktAbSWt.png
California does't seem to make criminal cases public for free like Arizona does.
He also filed for bankruptcy in 2011:
https://www.pacermonitor.com/public/case/36508/Michael_David_Waldman
This is the kind of people that Saleen does business. You need some shady people to buy debt from Saleen, so you need some equally shady people to sell debt from Saleen.
David Weiner hosted a big party at his apartment for the revealing of some renderings of the "Saleen Tesla".
The party was organized by a loaning business called Debtcraft according to their blog: http://debtcraft.com/blog/lunch-morning/
The video mentioned in this blog was taken down just a short while after it was posted here. Strange...
Here's what I could find about these guys from Debtcraft who organized the Saleen party:
http://www.ripoffreport.com/r/Debtcraft-Private-Client-Group-BIO/Woodland-Hills-California/Debtcraft-Private-Client-Group-BIO-BIO-BIO-Debtcraft-PCG-BIO-Media-Fake-swimwear-model-1114281
Here's a picture at the Saleen party where you clearly see the Saleen logo with the "BIO" logo of the group in the fake modeling agency complaint. The man in the photo is Waldman from the company.
https://imgur.com/jUeH3bZ
Why though? As an OTC Investor why? It is crystal clear they are using OTC investors. Even if everything goes well business wise, which it won't and as no signs of a financial turnaround, but for the sake of the argument lets say it does. The way it's step up, you have more than 140 million shares coming in to dilute the stock within the next 2 years. That's a big f-u to OTC investors who paid full price for the stock.
Let's not forget that before going public in 2013, Saleen Automotive (SMS Supercars) already had an $11 million accumulated deficit and it was losing about $3 million each year in the previous 2 years of operation. They were already in trouble. They only went public to dump their debt on the OTC investors. They already converted a lot of their debt to shares since they went public, but the biggest chunk hasn't even converted yet. You have a big one coming during the summer 2015 through the end of the year, then another huge one in 2017.
This has to be the reason they went public because the company didn't get money directly from the public offering. Only people from W270 and their friends were allow to sell and these people had bought Saleen's stock at $0.06 a share during the merger while the stock traded at $0.50 a share. They had the whole drop from 50 cents to 6 cents to sell the shares. If they managed to sell their 10 million shares they were allow to sell during the offering at an average of 30 cents, they would have already recovered all their money and they would have been sitting on 37 million "free" shares to dump on OTC investors for pure profit.
So yeah, Saleen's stock never should have traded above $0.06. Anything above that was a scam. Now it's just a joke.
Like the opinion that Saleen was a good investment at $0.50 a share? Then at $0.40. Then at $0.30. Then at $0.20. Even at $0.10 and now SLNN is trading at below 3 cents. All the information available leads us to believe that this trend is to continu until Saleen is to be closed.
What good is it for investors here that Saleen is still open if their investment keep suffering nonetheless?
If somehow Saleen is not shut down before the end of 2015, there will be close to 50 million more shares coming in to dilute the stock at current prices, but these very simple factors keep being ignored.
This is ridiculous. Earlier this month, Saleen raised just $174k cash (minus $11k in fees). Saleen has a $1.5 million quarterly operating deficit. The money raised will barely make a dent in their deficit. Even just considering that this money is for anything else than keeping the lights on is ludicrous. Even more ludicrous is thinking that this money could be use to build a new supercar.
The recent blitz of toxic debt issuing was nothing more than a poor attempt at making it to the next quarter at the cost of millions more shares coming to dilute the float for OTC investors.
Now it's "useless information" to points out that Saleen Inc. is not Saleen Automotive when someone confuses the 2. Ok sure.
Saleen Inc. is not Saleen Automotive. SLNN (what this board is about) is Saleen Automotive which was SMS Supercars before going public.
Saleen Inc. went bankrupt in 2007.
Sure. Lets wait and see.
You are generalizing my statement. The fact that Saleen wasn't a good investment 1 year ago and 3 months ago is not my opinion. It's a fact proven by the incredible fall of the price per share. On the hand, stating that Saleen is not a good investment today is indeed an opinion, but an opinion that will be proven right soon enough.
As of my knowledge of Saleen, it was at the very least enough not to invest in it which proved to be a great decision. Soon enough a lot of people will realize that their own knowledge of Saleen wasn't right and based on fallacies. At that point, it will prove interesting.
Scroll down this page and you'll see. Anyway. Saleen was a bad investment a year ago. It was a bad investment 3 months ago and it is still a bad investment today.
There's something wrong when a bunch of people says that Saleen owns it.
What's your point? Saleen doesn't own the car like a lot of people here claiming. Period.
Their no own research clause settle the matter, but soon enough sources will clearly outline the matter and it will much easier to rewrite Saleen's wiki page to be more representative of their history. I mean come one, it doesn't even include the 2007 bankruptcy.
Give it a few months or even just a few weeks and it will be a lot more clear.
Lets not confuse anything here. Tesla has close to $750 million in inventory so of course they can't go into detail about it, but they supply just as much information about it as Saleen does. It's just that with Saleen's low numbers, it's a lot easier to deduct additional information (Tesla: ~$750 million - Saleen: ~$350 thousands )
SLNN's support at the $0.03 level is artificial. Wash trading is pushing the last sell price higher. If you look at intraday trading, volumes trades below last close, while meaningless trades push the stock above last close then nothing trades until it's again below last close.
It is particularly evident from last Friday's chart:
1 million shares at $0.033 amount only to $33,000. It means nothing.I wouldn't be surprised if these 2 500k trades are matched trades.
Why would anyone here care about Tesla's stock price or even the price of gas for that matter.
Here's a chart comparing SLNN, TSLA and USO. No correlation between the 3 whatsoever:
https://finance.yahoo.com/echarts?s=SLNN+Interactive#%7B%22range%22%3A%222y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22USO%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%2C%22TSLA%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D
I would more than happy if Saleen would stop using Tesla's, but insinuating that there is some sort of correlation between Saleen's business and the price of gas is plain wrong.
Let me make something clear: The price of gas will never affect the price of Saleen's stock.
And if it would (which it wont), historical data show us that as the price of oil falls so does SLNN
https://finance.yahoo.com/echarts?s=SLNN+Interactive#%7B%22range%22%3A%222y%22%2C%22scale%22%3A%22linear%22%2C%22comparisons%22%3A%7B%22USO%22%3A%7B%22color%22%3A%22%23cc0000%22%2C%22weight%22%3A1%7D%7D%7D
Surprising! Not really.
I am not comparing industries. I am comparing their stocks and financial states. It is relevant to understand who is loaning money to Saleen and what is their track record.
I think a good way to look a the recents deals Saleen just made is to look at the stock of the companies that the new Saleen note holders have made similar deals with in the past.
i've made it easy. here's the 2 year charts for these stocks:
Some notes before: I did not cherry picked these companies to find a pattern, these are literaly all the companies I could find with which the new SLNN note holders made deal with minus some that were delisted.
USOTC:IGNT
USOTC:ELRA
USOTC:SFOR
USOTC:LEXG
USOTC:ECAU
USOTC:SIMH
USOTC:SHMX
USOTC:DGRI
No. My statement was that they were paying too much:
Sure 3 cents instead of 2. it's even worse.
SLNN will not go bankrupt if they keep issuing notes like that. It's as simple as that. Although if they keep doing that they will aggravate their already very serious dilution problem, but they made clear they don't care about dilution or their shareholders in general.
The notes holders stand to make some decent money if they can still find some people to buy. no matter how low SLNN fells, they will get the share at 40% to 60% discount on the lowest trading day + they got a 5% to 10% cash discount at the issuing.
Whoever is placing million share bids on SLNN at 2 cents is not a good investor since these note holders are having a way better deal for much less risk.
The only thing that might be a problem for them is if they didn't know about the other deals. Saleen made these deals all within one week so he could disclose them all at the same time. So if these guys didn't know about each others, now they will be pissed that through june to december next year millions of new shares will be coming in all at the same time. People will try to sell left and right.
The NY Post said they are being investigated by the SEC. I doubt the SEC would investigate someone they don't suspect.
Now you will try to discredit the NY Post. Sure, but keep in mind that the Post has access to Weiner's text messages. The source for both the texts and the SEC investigation is probably the same person and Weiner's lawyer didn't denied the veracity of the text messages.
If the text messages are veracious then the SEC investigation must be too. Therefore they are indeed suspected of pump-and-dump.
Check Mate.
They don't intend to prepay before conversion. They accepted terms with big penalty for doing just that. Up to 145% of face value plus interests.
Another Terrible News for SLNN Shareholders
Saleen just confirmed through their most recent 8K filling that during the first week of December, they went on a spree of issuing toxic debt.
The good news: Saleen got $174,350 in cash and $298,350 upcoming and offsetting notes (this is arguably not a good news if you are not a fan of scams…)
The bad news: Where to begin?
- They had to pay more than $11,250.00 in cash (the full amount is not disclosed, but they confirmed it’s more than that) to raise just $174,350 cash so about 7% of the cash they raised is gone before they even get it.
- Each note bears very high interest: from 8% to 12% and up to 24% if they default.
- Each note bears very high penalty if prepaid: up to 145% - which indicates Saleen has no intention to prepay these.
- The notes are short term: maturing in June 2015, October 2015, December 2015 and December 2016.
- Conversion rates were offered at crazy discounts: 40% to 60% on the lowest trading day out to 20 to 25 days.
- Saleen is putting aside 61.5 million shares for possible conversion. This would be another devastating dilution for the stock.
I think Saleen again shows that they don’t care about shareholders. The money they raised will not make a dent in SLNN’s quarterly operation deficit ($1.5 million), but the damage it will do to the stock price can be significant. At the current price, shareholders are looking at more than 20% dilution next year alone and going up to 40% through 2017.
It’s clear that the holders are looking at grabbing tons of cheap shares after their notes mature and they are only hoping that there will be enough “Saleen fans” to dump the shares on. Who are these note holders though? I did a quick research on them. If their previous investments are any indication of what is coming, I’ll be very worried if I were a SLNN shareholder.
The note holders:
- Rock Capital, LLC: It’s the first time they acquire debt from Saleen. Not much can be found about them online other than it seems a guy named Joel Jeffrey owns the company. https://www.sec.gov/Archives/edgar/data/1399977/999999999707024426/9999999997-07-024426-index.htm
- JSJ Investment Inc.: They already hold notes from Saleen. Also not much information about them. They have a weird website with very little information about them. The company appears to be registered to Keith Harvey from Texas. They have made loans to equally shady businesses like IGNT and CMGR, both companies were delisted.
- Vista Capital Investments, LLC: An investment vehicle very similar to the 2 others with very little information on them and on who is operating them. This one seems to be owned by a David Clark from San Diego. His own brilliant investments include: ELRA, SFOR, LEXG and ECAU. All these companies’ stock suffered greatly since Vista’s loans.
- Coventry Enterprises, LLC: You guessed it… exact same thing for Coventry. What are Coventry successes you ask? Well take a look for yourself: SIMH, SHMX and DGRI (another pot pennystock). The company seems to be under the control of the “Sloan family”, Stephen and Sharron Sloan???