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Too bad that holiday shop was not real (these are from 2018 and they were supposed to be available retail for last Christmas - I was wondering how they would get out of that one) - never happened - the bikes were not electric (others have posted on the proof of that) and not their bikes (their own PRS show that even according to them they had not even manufactured a prototype at that time) and with fake celebrity endorsements (Johnny Depp - ha!) - - they now are focusing on bulk sales to African ride share companies but that has also dragged on despite them saying how important "just in time" manufacturing was to buyers who needed the latest and greatest in a short cycle time. BS.
Electric rocket with side car
Yeah - competition was one factor but the death blow problem was that they were growing by lending to franchisees and then charging interest plus incredibly high off-market franchise fees that made it impossible for the franchisees to keep in business and pay back the debt to BOST. It all collapsed on itself.
Exactly. They couldn’t publish the franchising update yesterday as it is taking them too long to type out all of the new franchisees that came in at the last minute. Plus one was in Venice Italy where there has been flooding so there will be a delay.
That's not really what a black swan is - a black swan is the appearance of low probability high impact long tail risk event. I'm not sure why that applies to Sears. I don't think the stock price is due to rational investors pricing in a high value low probability tail risk possible outcome. Not trading over $.30 for over 2 months given the fact pattern 2 months ago would be well within norms I would think.
It’s like an episode of American Greed and I want to see how it ends. Unfortunately like ANCE, PJET and LEXG it will probably end with a whimper and not a bang - dragging on for a year or two and then silent forever. The SEC is getting tougher on OTC stocks but I figure if Alex Walsh of LEXG is still walking free then Randy is also too small potatoes to do anything about.
I also find it disgusting that he uses his military background to try to gain trust in perpetuating this ripoff and all the others with which he has been involved. Good military people deliver more than they promise - the opposite of his PRs. They also stand up to their mistakes instead of just going silent like he did with ANCE.
I also think all of these petty scams would make a fascinating book or magazine article - like a small time version of American Kingpin.
The ONLY thing you need to know about ALYI is that it is run by Randy Torno who ran ANCE (where he also put out PRs about African contracts that never came), was on the board of PJET, and was involved in USMJ. It’s like saying “Hey, Bernie Madoff is saying some really great things about the performance of his new hedge fund - I’m in!”
However, if you do need more convincing there's also the Rob Goldman paid research, the PRs announcing PRs, the previously announced LEXG alliance (which was either shady or stupid and lazy), the Mitlin PRs, possible ICO funding, and the whole idea that a ride share company is really willing to wait to buy these and wants to work with a company that has one part-time employee with no technical background, no assets, a ton of debt, and no product after many many months. Some will say "it takes time" but Randy himself discussed how important it was to produce these "just in time" to always be the latest and greatest. If someone in my ride sharing company made a deal with ALYI I would have to wonder why they were willing to risk their career and our company's business plan while we waited for more PRs.
It hasn’t been in the past. Look at my old posts after they claimed to pay off $1.4MM in debt. They massively diluted, paid off $1.4 of debt but put on more than $1.6MM of new debt during the same period.
Not only is the Goldman Small Cap report paid research but read the report "valuation and conclusion" - his $.17 target is based on it having $7MM in restaurant revenues plus $2MM in CBD product sales to get a value of $13.5MM. Divided by the 77.1MM shares outstanding he shows you get 0.175 cents!
However Rob left out two important things. One, this has $6.5MM in debt. So from an enterprise value of $13.5MM with no cash, subtract debt to make the equity value worth $7MM - now we're down to $0.091 valuation - still good right?
However WCVC RAISED the authorized from 2B to 10B shares - authorized isn't equal to outstanding but the recent authorization shows they expect to have more than 2B shares outstanding soon (they dont raise it for fun as it obviously is a horrible signal). Take the $7MM Rob Goldman valuation after debt and divide by 2B shares and you get a target of $.0035 - at 10B you get $.0007 - TRIPS!
So even paid for research says this one is NOT CHEAP even if we grow to $7MM in restaurant revenues and $2MM in CBD sales!
Scammers don’t put their scams on linkedin. LEXG is not in Alex Walsh’s even though he was CEO for years. AYLI, ANCE and PJET are not in Randy Torno’s even though he is CEO of ALYI and was CEO of ANCE and was on the Board of Directors of PJET for years.
There is already plenty of antitakeover language (see the last S-1) and the existence of 10MM authorized Series A preferred / voting shares with 1 TRILLION votes prevents a takeover without authorizing more regular shares. This is not for anti-takeover - it is for future dilution.
For those who understand that companies don't authorize 100 BILLION shares for fun, there is reason to stay away.
Don’t you get it - regular shareholders have no vote in this company - that’s not going to change. The Series A preferred shares (i.e., Nixon) have authorized up to a TRILLION votes. Why do you think Nixon and WCVC did this? Because he/they care about the outcome to retail non voting regular shareholders (the answer is no)?
The following two paragraphs are from the 5/31/19 S-1/A:
Our Board of Directors may designate the rights, terms and preferences of our authorized but unissued preferred shares at its discretion including conversion and voting preferences without notice to our shareholders.
The Company has authorized the issuance of up to 10,000,000 shares of preferred stock, by action of the Board of Directors. As of May 29, 2019, we had 500,000 preferred shares issued and outstanding.
So the authorized Series A shares at 10MM with 100,000 votes each have the same voting rights as 1 TRILLION shares and they can issue more to Nixon / themselves at a whim!
They don’t have to approve it. WCVC’s filings all say it can happen. That’s what happens when you buy a stock where regular shareholders have no effective voting power.
Warrants are still dilution
Nixon's Series A gives him the voting power of 500MM shares not 50MM.
The following paragraph is from the 5/31/19 S-1/A
The rights and privileges of the Series A preferred stock are solely as a “super voting” stock, whereby each one share of Series A holds votes amounting to the equivalent of 100,000 shares of common stock. Therefore, the 500,000 shares of Series A issued and outstanding hold aggregate votes equal to 500,000,000 common shares. The Series A shares have no dividend rights, no liquidation preferences, are not transferable and can be redeemed by the holder for $5,000 in cash from the Company for the entire 500,000 share block at the holder’s option.
Also Nixon can issue himself new Series A at any time to keep voting control so he'll never be diluted out of control. 10MM shares of Series A preferred are ALREADY authorized worth 1 TRILLION Votes.
The following paragraph is from the 5/31/19 S-1/A
Our Board of Directors may designate the rights, terms and preferences of our authorized but unissued preferred shares at its discretion including conversion and voting preferences without notice to our shareholders.
The Company has authorized the issuance of up to 10,000,000 shares of preferred stock, by action of the Board of Directors. As of May 29, 2019, we had 500,000 preferred shares issued and outstanding.
(so the authorized Series A has the same voting rights as 1 TRILLION shares and they can issue more at a whim)
Dilution doesn't dilute Nixon's voting power. All the votes are with the Series A preferreds which are not being issued in dilution - WCVC is and has been diluting with regular non-voting shares (see the huge increases in both shares authorized and outstanding) - the ones that everyone here trades. Nixon will control over 50% of the vote no matter how much WCVC dilutes.
OK - So I don't know who BAW would be but I'll wait and see.
My numbers aren't wrong. The PR said they paid down $1.4MM in debt but when you look at the financials they paid down $1.4MM but ISSUED more than that in the same time period - it was a totally misleading PR.
This is not a profitable company generating cash to pay back debt. They have "paid back" convertible debt by issuing new dilutive convertible debt and issuing hugely dilutive new equity and equity derivatives. Outstanding shares from June 30, 2018 to Aug 16, 2019 have gone from $19.2MM to $68.2MM a 255% dilution! They have not had a single quarter of positive earnings or positive cash flow since inception. If you add up from June 2018 to June 2019 (financials filed in theotcmarkets.com) they have lost $2.5MM in earnings, lost $1.1MM in operating cash flow and lost $1.2MM in free cash flow. Worst NET ISSUANCE of convertible securities from 6/30/18 to 6/30/19 was $200K (they issued $1.2MM worth of convertibles and paid back $1MM - this is in fact getting worse as in the first six months of 2019 NET issuance was $410MM issuing over $1MM and paying back about $600K). They note that they have issued 5 dilutive (converting at a 40 to 50% discount to the then currebt stock price) and high interest (8 to 12% interest with a 10% OID) convertibles form 6/30/19 to 8/16/19 (so VERY recently) for a total of $437K while paying off $303K old convertibles (thus the $1.4MM "paid off" but at the same time over $1.6MM was issued) - thus "paid back in cash" means "paid back in cash" with the proceeds of new convertibles or stock or derivatives not with any non-existent restaurant profits. These aren't my words - it's the WCVC's words in its own financial filings.
No Oktoberfest for me
Where is the PR that says who the franchisee is? Do you mean Noble? Has this been announced? If not , that would be a weird pick as his business has been the OPPOSITE of a franchisee. His business is COLLECTING royalties (from oil and gas) not PAYING them - a very different business model. If not Noble who do you think this is and why? Thanks!
With regard to valuation they also have over $6MM in debt and don't make money even on operating (pre-store opening) basis so it's hard to say that if I wanted to start a CBD burger restuarant selling CBD products my best value would be to buy one that already has $6MM in debt or to franchise from one and pay royalties to a highly debt-ridden franchise that has not proven the ability to be profitable on an operating basis rather than just company this business which would be perfectly legal (with a different name and store look).
That was a Rob Goldman joke - only he (well not ONLY he) would put a $10 price target on a $3 bill - the joke is
a) that a $3 bill is fake and he would still put a price target on it if you paid him to research it and
b) that if a $3 bill were real the price target SHOULD be $3 on a $3 bill but he would find a methodology to make it $10.
I guess this shows it was a terrible joke (as bad as Goldman Small Cap's Opportunistic "research") - if you have to explain it.....
SHLDQ equity holders do not control anything about Sears including loans and salaries. They have ALMOST no say in the bankruptcy process. There are some small index funds that still need to hold Sears (like the Victory Capital USAA Extended Market Index Fund which was the largest institutional buyer of SHLDQ last quarter albeit at adding just 11K shares), some may be restricted from trading and others are retail buyers hoping for something.
The whole story gets crazier w each PR. We are supposed to believe that legitimate customers are willing to both wait forever for their orders and risk their business plan by ordering from a debt laden company with no experience or resources and a manufacturing plan that depends upon a $100MM ICO launch. Also, there was supposedly a prototype test that got these investors involved but we can’t see video of that - on the assumption that it is secret- but have been promised video soon which would mean that the further developed prototype that is closer to customer specs isn’t secret for some reason. I know Randy worked in the film industry for a while decades back but his screenwriting is getting lazy.
New Rob Goldman report says $3 bill target price is $10
It doesn't say anyone is interested in acquiring KALY. It says that there is a "conditional" proposal to buy a technology that KALY acquired when it bought NCMB last year. Since terms were never disclosed and KALY has not been current with financials no one knows what that transaction actually looked like. If WCVC were to buy something from Caveat Emptor (theotcmarkets) listed KALY, it would add to their association with likely scams (adding USMJ and KALY where they are now associated with PJET).
Search for Mitlin in this thread. ALYI dropped mention of Mitlin after a bunch of people called or emailed him for more detail and he said he just did a minor consulting project for them (this hasn't been confirmed by ALYI but you can contact him also). After many initial Mitlin based PR's Mitlin hasn't been mentioned by ALYI for more than six months - my best guess due to a cease and desist order. Mitlin has his own hemp battery commercialization company that you can see on the Clarkson (where he works) website (which has never had anything on it about ALYI) so it was never very likely that he was developing battery technology for ALYI.
I can't read whatever that language is
The tornados were Sunday - WCVC confirmed the upcoming announcement on the following Wednesday for THE NEXT DAY - what happened in one day?! I feel great empathy for the people of Dallas and believe that everyone who can should donate to relief efforts there but under what fact set could WCVC confirm this Wednesday, be silent on the announcement day and then put this out today? WCVC doesn't have to be in Texas to put out a press release from their headquarters in California! I'm assuming this means the agreement was never signed / final (i.e., that the story is that the franchisee's location was damaged and for some reason they didn't know this three days later when they confirmed so the franchisee is deciding whether and when they can go ahead?) The wording "the franchisee remains committed" definitely sounds like they are not contractually obligated. Also, when did they find this out - this morning??? Why couldn't they put this delay news out yesterday or Wednesday instead of confirming? What will they actually be doing in the next week that is needed to make this announcement - finding a new location in a week? Why can they tell us now that it is a North Texas location and not put that out a week ago when they "announced the announcement"? It doesn't make sense unless you REALLY stretch belief - another stink bomb.
I forgot to add "Rob Goldman" "Goldman small cap research" research report as another flag that this may be a scam
The first franchise agreement doesn’t mean that a large franchise like McDonalds will announce an agreement with WCVC . It means that someone other than WCVC, and hopefully that is someone independent of WCVC, will run one or more Illegal Burgers and give a portion of the revenues at that location or locations to WCVC in exchange for using the branding, menus, training and other resources of WCVC. It is interesting that someone would want to do this given the financials of WCVC but we’ll see tomorrow. If it’s not a finalized binding agreement and it’s not a fully independent franchisee, that would be bad. If it is it’s definitely good on the margin (but you still would have to wonder why someone would want pay a franchise fee rather than just reproduce a similar concept as Illegal Burger has little brand recognition, no resources, no proven success - they of course generate revenues but also barely break even not even counting start up costs leading to massive debt relative to revenues - and an easy concept to copy without violating trademark or other laws).
I thought this looked just like a struggling restaurant concept rather than a scam but the early (not sure what the status of AmeriCanna Cafe is) PJET affiliation, the 2B shares authorized and the PRing of events without details and before they have occurred is troubling.
KONAQ will no longer exist - the ONE group bought certain ASSETS of the company out of bankruptcy. I assume you are recommending STKS (One Group Hospitality - the buyer) and not KONAQ (a bankrupt shell with more debt than asset value).
From their latest (10/15/19) filing (8-K)
As a result of the Asset Sale, the Debtors have sold substantially all of their assets. Accordingly, the Debtors have ceased ordinary business operations. After ceasing business operations, the Debtors expect to engage only in the liquidation of their remaining assets, and the winding up of their affairs, and, where feasible, dissolution under applicable state law.
No portion of the proceeds of the Asset Sale will be distributed to holders of its common Stock. Instead, all such proceeds are expected to be applied in their entirety to the costs associated with administering the Chapter 11 Cases and reducing the amount outstanding of the Company's senior secured indebtedness under the Second Amended and Restated Credit Agreement dated March 9, 2018, as amended, among the Company, the lenders from time to time party thereto, and KeyBank National Association, as administrative agent, which was rolled into the Company's financing facility (the "DIP Financing Facility") that was approved by the Bankruptcy Court.
Furthermore, the Company does not expect to be able to distribute to holders of its common stock portion of the proceeds of the liquidation of any of its remaining assets, which are insufficient in value to permit any such distribution to stockholders after first being applied toward the reduction of the Company's DIP Financing Facility and administrative expenses of the Chapter 11 Cases.
Having ceased ordinary business operations without assets likely to be sufficient in value to make any distribution to holders of the Company's shares of common stock, the Company advises its stockholder that the trading prices, if any, for such shares may bear little or no relationship to any future distributions and that such shares may not have any value. Trading in shares of the Company's common stock poses high risks and the Company urges extreme caution with respect to existing and future investments in its common stock.
KONAQ will no longer exist - the ONE group bought certain ASSETS of the company out of bankruptcy. I assume you are recommending STKS (One Group Hospitality - the buyer) and not KONAQ (a bankrupt shell with more debt than asset value).
From their latest (10/15/19) filing (8-K)
As a result of the Asset Sale, the Debtors have sold substantially all of their assets. Accordingly, the Debtors have ceased ordinary business operations. After ceasing business operations, the Debtors expect to engage only in the liquidation of their remaining assets, and the winding up of their affairs, and, where feasible, dissolution under applicable state law.
No portion of the proceeds of the Asset Sale will be distributed to holders of its common Stock. Instead, all such proceeds are expected to be applied in their entirety to the costs associated with administering the Chapter 11 Cases and reducing the amount outstanding of the Company's senior secured indebtedness under the Second Amended and Restated Credit Agreement dated March 9, 2018, as amended, among the Company, the lenders from time to time party thereto, and KeyBank National Association, as administrative agent, which was rolled into the Company's financing facility (the "DIP Financing Facility") that was approved by the Bankruptcy Court.
Furthermore, the Company does not expect to be able to distribute to holders of its common stock portion of the proceeds of the liquidation of any of its remaining assets, which are insufficient in value to permit any such distribution to stockholders after first being applied toward the reduction of the Company's DIP Financing Facility and administrative expenses of the Chapter 11 Cases.
Having ceased ordinary business operations without assets likely to be sufficient in value to make any distribution to holders of the Company's shares of common stock, the Company advises its stockholder that the trading prices, if any, for such shares may bear little or no relationship to any future distributions and that such shares may not have any value. Trading in shares of the Company's common stock poses high risks and the Company urges extreme caution with respect to existing and future investments in its common stock.
What does he say about ALYI on linkedin?
Yeah - the RV400 is made by a company in Indian with nothing to do w ALYI see a bunch of the posts below for more detail.
Yeah - Randy Torno with 0 experience or education in engineering or manufacturing is working hard to reverse engineer the Harley charging system so that he "learns from their mistakes." Ha! (they still only have 2 employees - neither one full time including Randy). Harley will be producing again well before ALYI ever books ReVolt revenue.
It's interesting that these were supposed to be produced retail available for purchase by Christmas of 2018 and as I was wondering "how were they going to get away from THAT hard deadline if this is a fraud" they pivoted to commercial sales with "just in time" manufacturing as time to market was supposed to be so important and now they are "no rush" as for some reason these ride share clients would rather wait forever to buy something from a company with no expertise, 2 part time employees, and no financial resources rather than from any of the many EV motorcyle suppliers already producing (but this will have a sidecar which is so difficult for anyone else to make if it is truly needed (not)). Of course a large wholesale strategy makes sense (if it were realistic that anyone would do business with an untested firm with no resources that its accountants had going concern issues about ) but it is interesting that it didn't occur to Randy until another pumped milestone was about to be missed. The Texas revenue was also announced long ago - these buyers are super patient - I would imagine I would be fired if I were in charge of the EV bike ride share business at Uber or Lyft or a smaller start-up and had to go into every meeting saying "we are still waiting for this OTC firm with more debt than market cap, consulting revenues only, and no full time employees as they continue to test and prototype" - what nonsense.
Also, dont get all excited when that footage of the ReVolt bike finally appears - wait for the revenues - LEXG had video of their SonCav "magic steam machine" for years and never had a sale and then famously folded both the SonCav business and their mythical oil drilling business.
The Revolt RV400 has nothing to do with ALYI. The RV400 is from Revolt Motors (www.revoltmotors.com) based in India and ALYI's company is ReVolt Electric Motorbikes (www.revoltmotorbikes.com). They have nothing to do with each other.
It may be as the SEC is going to stop quotes/trading for OTC stocks without current financials (SHMP is current but this may be what is bringing down the OTC in general as many of the IHub OTC stocks are not).
https://www.sec.gov/rules/proposed/2019/34-87115.pdf
They didn't just explore it - they signed a Letter of Intent, which is a legally binding document and then they PR'd this which shows a lack of due diligence prior to issuing PRs. It was obvious to anyone who REALLY looked at LEXG that it was a fraud - that is why it was not natural and legitimate to explore it, do an LOI and PR it. In fact you can see my negative posts on LEXG prior to the ALYI announcemnet. It was this announcement that LEXG had a new partner that made me look at ALYI as a likely fraud and Randy Torno should have seen this about LEXG in about five minutes of public research.
Those two months are critical. You laughed out loud and claimed that the poster who sold knew nothing about ALYI if he or she sold "almost two years ago". With the extra two months that poster could have very well sold when they saw someone associated with ANCE and PJET coming in to run ALYI. That would neither be laughable nor ignorant but rather thoughtful and prescient.
LEXG, probably the most famous scam in the OTC markets, also proposed an ICO less then two years ago and cancelled it when they figured out it would bring on the SEC. LEXG has gone silent and is halted pending delisting from the OTC.
https://www.globenewswire.com/news-release/2018/01/31/1329427/0/en/Lithium-Exploration-Group-CEO-Announces-Plans-for-a-Second-Quarter-ICO.html
This also was right around the time that ALYI announced a Letter of Intent to buy the main asset (SonCav) of LEXG (another red flag) which was also cancelled. This was under current ALYI CEO Randy Torno as shown in the PR below.
https://www.prnewswire.com/news-releases/alternet-systems-announces-loi-to-acquire-lithium-exploration-group-soncav-asset-in-deal-to-include-dividend-distributions-to-shareholders-of-both-companies-669717683.html