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All these numbers are public. Look them up yourself. First lien note is the last 8K. Bank suing SLNN is the 8K just before that. and everything else is in the last 10Q. Good reading.
Literally everything points toward a bankruptcy. It doesn't matter how many pennystock-flippers come in to pump the stock. Fundamentals remain the same.
The bank is suing Saleen for $300k and they don't have any money to pay. They owe $600k in payroll taxes and they don't have any money to pay. They owe millions to vendors and they don't have any money to pay.
Then a company comes in and give Saleen $500k, not to pay back the debt, but just to survive long enough for the other people with notes can unload their shares through a pump. People who had veto in raising more funds BTW. In exchange for that, they get first lien rights and coincidently Steve Saleen let go of his brand right.
These are not coincidences.
THIS IS A FIRST LIEN NOTE
That note to Greentech is a "First Lien note". They just went dibs on the brand in the bankruptcy. SLNN had to give brand right to get the note.
all the pthers notes are for fa discount:
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
ThatMs just one of the notes. The others, which are converting now, not in September;
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
at a conversion price equal to the greater of (a) 61% of the average of the lowest 5 trading prices for our common stock during the 10 trading day period ending on the latest complete trading day prior to the conversion date, and (b) $0.00009
lol! They have just as much debt as they had when they went public 2 years ago.
Sure saying the truth makes you a short. Short interest is public: http://www.otcmarkets.com/stock/SLNN/short-sales
There's no short interest on SLNN (0.0001 of the float). No one could find SLNN shares to short even if they wanted to...
Beware this is only a pump and dump
Look into the big holders here: David Weiner, Fred Knool, KBM Worldwide.
In 2013, Saleen Automotive, mostly known as SMS Supercar back then, was in a bad financial situation with $11 million in accumulated deficit, so they went public through a reverse merger. I don't know how familiar you are with reverse mergers, but basically in order to avoid all the red tape that comes with going public, a private company in bad shape is absorbed by a publicly traded shell company. In this case, Saleen received $3 million for merging with David Weiner's shell company W270. In the process, David Weiner and his associates got a lot of shares of Saleen for cheap. Earlier this year, they even changed the conversion rate of the convertible notes held by Weiner and his associates which will result in them owning a majority stake in the company at maturity unless they unload shares as they go which is evidently what is happening since the stock went from $1.00 2 years ago to now just $0.0035.
Now David Weiner does this scheme a lot. These days mainly with pot related companies because there's lot of hype around the sector with the growing popularity of the legalization movement. These companies' stock always go straight up right after Weiner goes in and then crash. Just like Saleen's stock.
Here is a good writeup from Bloomberg on what Weiner did with a few companies: http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy
Here is an easy to understand visualization of the links between Saleen's ownership and 2 of Weiner's companies mentioned in the Bloomberg article: https://i.imgur.com/MnmZNpr.jpg
Saleen took 3 different loans from a company called KBM Worldwide (See the 3 8K below).
As far as we can tell, these loans have nothing to do with Weiner and friends, yet this new alliance is troubling on its own. All together, these notes are worth $211,000 - $224,000 with interest. This might not seem like much, but with the ridiculous terms attached to the notes (0.6 of low 5 of 10 days), if the notes were converted today, they would get 28.7 million shares at $0.0078. These 3 notes matures in June and July 2015. We can expect tremendous pressure on the stock from these shares starting in the next 3 months.
Now who is behind this KBM Worldwide? Two brother. Seth and Curt Kramer.
These guys are not the kind of people you want SLNN borrowing from and even less owning shares of SLNN.
Seth Kramer conspired in a lender mortgage fraud case and consequently had to settled for $1.2 million and he is barred permanently from HUD programs.
United States Attorney’s Office Recovery press release: http://www.justice.gov/usao/nys/pressreleases/December11/cambridgesettlementpr.pdf
His brother Curt is no better. Out of his 2 investment vehicles prior to KBM Worldwide, one received a cease and desist from the SEC and the other was dissolved. Much like his brother, he had to pay $1.4 million to settle the charges with the SEC. A company even had to cease all relationship with Curt Kramer, from which they borrowed money, in order for FINRA to accept their reverse split. (See comment below)
This is the kind of people Saleen is doing business with…
Sources:
The 8K announcing the notes issued by SLNN to KBM:
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003160/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003262/form8k.htm
comment janice shell - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112757109
Quote:
The Kramers are very bad news. Curt Kramer used to run a toxic financing company called Mazuma. The SEC finally got round to suing him in 2013:
www.sec.gov/litigation/admin/2013/33-9485.pdf
He settled with them for a sum he wouldn't miss:
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540410863
In the meanwhile, he'd created a new company called Asher Enterprises, and was doing his financing deals through it. But there were unintended consequences for Kramer. Last fall, a company called Ecolocap decided to do a reverse split. ECOS had once accepted financing from Asher. FINRA refused to process the corporate action for the reverse split, saying that by virtue of his settlement with the SEC, Kramer had officially become a Bad Actor.
http://www.sec.gov/Archives/edgar/data/1290506/000100201414000516/ecos8k-09162014.htm
Eventually--and disappointingly--ECOS worked out its problem with FINRA, and was allowed to proceed with the r/s:
http://www.sec.gov/Archives/edgar/data/1290506/000100201415000052/ecos8k-02182015.htm
In the meanwhile, though, Asher dumped its positions in most of the companies it had agreements with. But if FINRA or the SEC thought he was admitting defeat, they were wrong. He and his brother Seth got KBM up and running as a substitute for Asher...
It's part of the whole pump. Completely unsubstantiated. Steve Saleen gave up on SLNN long ago. Most investors also gave up. Now it's the penny flippers who are coming in. All they'll do is allow the notes holders to unload their shares.
JSJ are getting their shares $0.0006 they must be pretty happy right about now.
What's the surprise? It was a term of the note that they would need to spend all the money to buy chassis.
I don't need to work to make this stock fail. It's a pump and dump scheme. They always end up failing.
200 million shares coming in the next few days.
Seriously?
Please.
You said that it was a good bet when the stock was at ~$40 million market cap plain and simple.
By saying that you "know it wasn't worth that back then" what do you mean?
Because you clearly said that SLNN was a good bet in December 2013 when the stock was worth north of $40 million.
You then followed up with:
This is PRICELESS.
You said you thought it was worth it at ~$50 million. You said and I quote
Why would there be a press release? Steve Saleen was the majority shareholder and now he is not. The control of the company has been taken over. Plain and simple.
What do you mean no takeover? It's already done. Steve Saleen is not a majority shareholder anyore. The ownership of the company is completely changing, so of course it is being "taken over".
Please. No one is making real money here.
8.5 mllion x $0.0018 = $15,300
8.5 mllion x $0.0012 = $10,200
So a potential for $5,100 split between everyone if they timed the market perfectly. Please.
The only people making money here is the note holders who get the shares at 40% discount.
And even that is nothing compared to the massive market cap loss SLNN had over the past 2 years. $50 million to $300k.
No it's not simple. You said he was "incorrect" and then proceeded to talk about a completely different note with different conversion rates than the ones he was talking about. So he wasn't incorrect then.
The $0.02 conversion rate for Greentech is simply to match the ones from Weiner and Knoll. As the 8K states, Weiner and Knoll had to approve to note and of course they wouldn't approve anything below what they paid for, which was $0.02. This notes simply puts Greentech at the same lien level as Weiner and Knoll.
Since they are now the biggest note holders, Weiner, Knoll and Greentech, they probably have a deal to take over.
And when did he talk about the Greentech note?
Greentech's note mature in September. He was talking about now. As SLNN stands now, more than 200 million shares will be converted in the next few week. Not in September.
Also Greentech's notes is a "First Lien Note". It doesn't necessarily mean they think it will go up. It could also simply mean that they want access to certain assets in case of bankruptcy.
This provision that came with the terms of the note makes it even more likely:
Not really , no. They already get a minimum of 40% discount at conversion. They are already making money. They will be pumping to make sure some chumps pick up the shares, but they will not risk to wait for it to go up since they are already making money. They know like everybody else that other notes are coming. They need to sell before the others get their shares and now they have to compete with them to sell.
Yeah makes sense. They put aside ~50 million shares for next few notes and it looks more like 250 million shares will be needed. More than doubling the reported outstanding shares
This is just the beginning . I’ve been saying it from months.
Just in the next few days, you have 2 notes converting. Accounting for interests, they are about $52,500 and $130,000.
The first note, held by JSJ, has a 42% discount on the lower trading PRICE, not close, PRICE of the last 20 trading days. As of today, that’s on $0.001. So they will get 90 million shares at $0.00058. That’s on Tuesday assuming they convert all the same day.
Then the Monday after that, you have the second KBM note converting. $130,910 with interest. This one is at 61% of the average of the 5 lowest trading PRICES of the last 5 trading DAYS. There’s no way to know for sure what the conversion will be, but with the JSJ note converting just a few days before, it could be brutal.
Let’s be optimist and say the stock stabilizes at $0.0014. They would get 154 million shares at $0.00085.
Need I remind that these notes are setup with very punitive cash repay, making them unlikely to be repaid. We all know what happened when the first toxic notes were converted in April, the stock went sub penny for the first time.
As if 52 week low is an indication of a bottom...
No, Tesla is not in partnership with Saleen.
If you are interested to know more about parties who invested in Saleen you should read on David Weiner. He owns a lot more SLNN shares than Greentech: http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy
... Market is closed today.
I don't know why this is so hard to believe. BBB, Yelp and Ripoff Reports are full of similar stories about Saleen. Whether it be during the SMS Supercars days or Saleen Automotive.
Again, and quite literally for the hundred time, I've always said that Saleen could still stay open if they keep issuing debt. Which they keep doing. Now quite good at it. We all know about the 2 big notes coming in just 2 weeks.
They have a $0.02 restriction on them. they will convert at 60% of the share price.
Today's gain? please all the penny stock flipper came in and now suddenly it's an all-star stock. It's ridiculous. It's far from the $0.30 days. You remember those?
I'll make it even more clear.
Frederic Lambert is not a troll. He wrote articles about Saleen based on verifiable sources that are linked to the articles.
http://blacksheepplanet.com/index.php/category/cars/
To this day no one has been able to disprove anything he said about Saleen. Only invalid claims about the warranty being void without cause, which was never actually made in the article and things about fake emails, which is even more ridiculous since he would have been sued if he was forging emails in which Saleen was lying.
SLNN is a scam and always been a scam:
In 2013, Saleen Automotive, mostly known as SMS Supercar back then, was in a bad financial situation with $11 million in accumulated deficit, so they went public through a reverse merger. I don't know how familiar you are with reverse mergers, but basically in order to avoid all the red tape that comes with going public, a private company in bad shape is absorbed by a publicly traded shell company. In this case, Saleen received $3 million for merging with David Weiner's shell company W270. In the process, David Weiner and his associates got a lot of shares of Saleen for cheap. Earlier this year, they even changed the conversion rate of the convertible notes held by Weiner and his associates which will result in them owning a majority stake in the company at maturity unless they unload shares as they go which is evidently what is happening since the stock went from $1.00 2 years ago to now just $0.0035.
Now David Weiner does this scheme a lot. These days mainly with pot related companies because there's lot of hype around the sector with the growing popularity of the legalization movement. These companies' stock always go straight up right after Weiner goes in and then crash. Just like Saleen's stock.
Here is a good writeup from Bloomberg on what Weiner did with a few companies: http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy
Here is an easy to understand visualization of the links between Saleen's ownership and 2 of Weiner's companies mentioned in the Bloomberg article: https://i.imgur.com/MnmZNpr.jpg
I've never invested in this stock I'm not mad about the drop. I've been telling people not to invest since it was at $0.30.
Please take a look at these 3 articles about Saleen, the articles I assume you are refering to, and tell us exactly what is not true about Saleen in these articles?
http://blacksheepplanet.com/index.php/category/cars/
Yet you can't disporve anything he says. How come?
He called the fall of the share price since it was $0.30. Was he wrong about that too? Now that the stock is at $0.003?
Please take a quote from an article and explain why it is misinformation. Just one.
You should look into this blog of his instead. i think it answers a lot of your interrogations: http://blacksheepplanet.com/index.php/2015/05/14/saleen-automotive-lost-84-of-its-value-year-to-date/
Nope. Read the whole thing and it is clearly stated that it is "First Lien Convertible Note" meaning that once they go bankrupt they will have the first pick.
That's pretty clear.
Please go read the 8K again.
Then why can't they pay their debts with the capital raised:
They are not paying a premium. They are buying the right to be first lien in case of bankruptcy. This is not the same thing. Come on.
PLease explain how this is not a takeover? It's setup as a "first lien convertible note". They will either fill for bankruptcy and GreenTech, Weiner and Knoll will get first dibs through their first liens on Saleen's assets or they will merge with another entity at which point GreenTech gets 200% of its principal amount.
Why else would they get a 4 months bridge loan?
Yeah I think it's clear from the 2 8K that they are setting up the company to go bankrupt and for Greentech, Weiner and Knoll to have first dibs on the what little assets the company has.
Greentech already made sure to have "Saleen Motors International" ready. They are going to pick up what's left of Saleen and put it in that.