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What do you mean they cannot do that? That's how an RTO works.
Besides, you're just looking at it the wrong way. An RTO is an amalgamation of two entities. The new ownership is based on what each side it bringing to the table. We would then be owners of everything Gallant owns.
Don't be afraid of "reverse split" here. They aren't doing it to allow noteholders to convert. That's what some OTC stocks do. This is for the RTO purpose and doesn't negatively impact us.
Level 2 is market depth. If you don't subscribe to level 2 then all you can see is the highest BID and lowest ASK. If you do subscribe to level 2 then you can see all the bids and all the asks. That's why some people will say "there is a wall at .03" that we will need to break through. Current bid ask could be 0.27/0.28 and people with level 2 can see that there are millions of shares on the ask at 0.30. So they know there are a lot of people looking to sell slightly higher. That means they can also see a solid bottom where people are waiting to buy a lot of shares so the price probably wouldn't drop below that level.
That's what I'm waiting for. The entire problem with this right now is we have two options. One makes us a lot of money and the other loses everything.
If Gallant RTO's with SOUPQ then we are golden. If they don't do that then we are nothing but a shell. I think there is leftover cash from the asset purchase so the shares aren't necessarily worthless. That said, I haven't gotten a full understanding of the SOUPQ debt as fins aren't current.
If the RTO happens, existed SOUPQ shareholders will be diluted and there will probably be a reverse split, but we would then be shareholders in Gallant Brands. Since WC already owns 51% of SOUPQ, whatever portion of the new company Gallant allocates to existing SOUPQ shareholders, they are technically only giving up half that amount. For this reason, I don't think they would be too stingy on the RTO terms.
Just so people understand, in most RTO's the non-public company owns the majority of the new one (that's why it's "reverse"). This is also why a reverse split is necessary because new shares are issued to the new owner.
Also meaning they would be trading at 1 times revenue if the PPS remains where it is. Not sure if I've ever heard of a company trading that low. :)
How do you feel about your comment after reading the news?
Should still be able to trade. Also, if that is a restriction on the account, the industry just changed to T+2 so technically it's now the "two day rule."
What's the three day rule?
YES! Let's go!
It doesn't state anywhere that they have done an RTO. I suspect they might do an RTO back into soupq since WC already owns half of it, but that remains to be seen.
And it wasn't very clear. I'd like something that explains the business plan.
The argument is that we own shares of SOUPQ which doesn't own the assets anymore. Gallant owns the assets.
I have a lot of shares and I don't like seeing my position down 45%. We need a PR.
FYI, since you were MIA. A lot of strong hands grabbed on the dip.
The 8k literally listed exactly what everyone knew was going to happen. If WC didn't own a huge portion of SOUPQ then I would be worried because they don't need the company anymore. Since they own such a significant portion of the shell, they are going to RTO and amalgamate the business.
Current SOUPQ holders will own a fraction of the new co, but that's because it won't just be the old SOUPQ assets, it'll be everything. Also, there is typically a reverse split before this happens so that the new company doesn't have a ridiculous amount of shares. It's not a diluting tactic though so if that news drops everyone should be aware that it is very very normal in an RTO. It's actually a fairly common way of going public in Canada because there are so many failed small mining exploration companies. All they have going for them is that they are listed.
That would be insider selling and would be illegal. Thanks for trying though.
CLAY BAY BAY!!!
Stop saying worthless. That's why you're getting heat from people. If it was worthless why the eff are people here?
They went through court and things are looking good. The q will come off.
Lol nice try
I'd like to know too. Anyone have answers?
Lol so you're saying the future is the illegal market?
Why are you even on this board if you're saying the future is not in the LP's?
I almost have 1 mill shares and they aren't for sale. I'm actually surprised with the 5.2 mill volume when there are a lot of people here claiming they aren't selling. I guess there are still a lot of flippers trying to make pennies.
If people stop hitting the ask this thing will fly. Hopefully, some of the new buyers will hold.
I want at least 10 bags out of this.
Seriously wish I had put a buy in at 27/28. I just assumed it wouldn't dip that low today. Absolute gift.
Whoever grabbed those, I commend you.
I think TD Ameritrade lets you put it higher. I'm in Canada and my TD web broker has a max.
Excited for the open! I'll be dreaming of the money harvest.
They filed Q2 (june 30) on August 15th. Based on that I would expect Q3 to be filed mid November.
That will be something everyone is looking for since this is supposed to be when the new revs will be reflected. Should be a solid second half of the year for AZFL.
Lol this is not a pump and dump. The crops are real my friend.
Insider Financial News:
LinkL https://insiderfinancial.com/the-battle-for-soupman-inc-otcmktssoupq-is-just-starting
They're bullish on SOUPQ.
Posted on September 8, 2017
Soupman Inc (OTCMKTS:SOUPQ), which manufactures and sells soups under the name of “Original Soupman”, surprised the market on September 6, 2017 after a new letter from Jeffrey Freedman, Manager at WealthColony Management Group, LLC, was published the same day. The share price went from $0.01 to cross the level of $0.03. In addition, more than 20 million shares changed hands that day.
You may remember from our previous article Soupman Inc (OTCMKTS:SOUPQ) Is A Prime Takeover Candidate” that WealthColony Management Group, LLC, had claimed ownership of 51% of the total outstanding shares of the company. The current Board of Directors of SOUPQ did not respond favorable. Well, in this article, we will explain what happened, and why the share price reacted. Read until the end and you will understand everything.
Recent Developments
Let’s revisit the business model of SOUPQ. It manufactures and sells soups under the brand name “Original Soupman”. Maybe some readers know the product. It can be found in big chains, such as Kroger, Publix, and Safeway.
Now, let’s go for the announcements. We need to recap a bit what happened. On June 13, 2017, Soupman Inc. announced that it had filed for Chapter 11 bankruptcy protection, and it was going to receive $2 million debtor-in-possession credit facility (“DIP”) from an independent third-party private investment firm. After which, WealthColony SPV II, L.P., declared that it had acquired large amount of shares of the company. In the first filing, a stake of 40.1% was noted. WealthColony SPV II, L.P., said that the DIP financing that the company had obtained was not fair.
“(i) the General Partner’s concerns about the existing management team of the Issuer, (ii) its belief that alternate financing with better terms may be available and (iii) its belief that the proposed DIP financing is not fair, reasonable and adequatete under Section 364 of the United States Bankruptcy Code because the interim DIP financing is not necessary for the operation of the Issuer and other debtors.”
On August 18, 2017, WealthColony again noted another stake, but this time much larger: 51%. Additionally, WealthColony sent a letter to Jamieson Karson, CEO, saying that the “Former Directors were no longer authorized to act on behalf of the Issuer, and requested that the CEO instruct the Former Directors to refrain from any such actions, and from holding themselves out to anyone as having such authority.“
The reaction of Soupman Inc. and the Board of Directors was interesting. It submitted a letter claiming that WealthColony SPV II, L.P., did not prove to have acquired 51% stake and needed to do so. In our previous article, we said that readers needed to follow very closely the news from the company, as it could create a share price jump. This is exactly what happened.
The following is a new letter that WealthColony SPV II, L.P., transmitted to the company on September 6, 2017 and it created the share price reaction on SOUPQ’s stock price:
“Dear Mr. Karson:
We are in receipt of the letter dated August 21, 2017 from Jeremy Johnson of Polsinelli PC, counsel to Soupman, Inc. (the “Company”), in which Mr. Johnson advises that the Company cannot acknowledge the effectiveness of the actions taken by WealthColony SPV II, L.P. to replace the Company’s Board of Directors because, among other things, it is unable to verify that WealthColony SPV II, L.P. has received the affirmative vote of a majority of the outstanding shares entitled to vote in order to remove a director. Please be advised that WealthColony SPV II, L.P. has elected to not challenge the Company’s position with respect to the effectiveness of the actions and hereby revokes the consent delivered with its letter to you dated August 18, 2017.”
ByJarrod WessonPosted on September 8, 2017 SHARE TWEET SHARE EMAIL COMMENTS
Soupman Inc (OTCMKTS:SOUPQ), which manufactures and sells soups under the name of “Original Soupman”, surprised the market on September 6, 2017 after a new letter from Jeffrey Freedman, Manager at WealthColony Management Group, LLC, was published the same day. The share price went from $0.01 to cross the level of $0.03. In addition, more than 20 million shares changed hands that day.
One month stock chart for Soupman Inc OTCMKTS:SOUPQ
1 month chart for SOUPQ
You may remember from our previous article Soupman Inc (OTCMKTS:SOUPQ) Is A Prime Takeover Candidate” that WealthColony Management Group, LLC, had claimed ownership of 51% of the total outstanding shares of the company. The current Board of Directors of SOUPQ did not respond favorable. Well, in this article, we will explain what happened, and why the share price reacted. Read until the end and you will understand everything.
Recent Developments
Let’s revisit the business model of SOUPQ. It manufactures and sells soups under the brand name “Original Soupman”. Maybe some readers know the product. It can be found in big chains, such as Kroger, Publix, and Safeway.
Images of SoupMan Tetra Pak Cartons
SoupMan Tetra Pak Cartons
Now, let’s go for the announcements. We need to recap a bit what happened. On June 13, 2017, Soupman Inc. announced that it had filed for Chapter 11 bankruptcy protection, and it was going to receive $2 million debtor-in-possession credit facility (“DIP”) from an independent third-party private investment firm. After which, WealthColony SPV II, L.P., declared that it had acquired large amount of shares of the company. In the first filing, a stake of 40.1% was noted. WealthColony SPV II, L.P., said that the DIP financing that the company had obtained was not fair.
“(i) the General Partner’s concerns about the existing management team of the Issuer, (ii) its belief that alternate financing with better terms may be available and (iii) its belief that the proposed DIP financing is not fair, reasonable and adequatete under Section 364 of the United States Bankruptcy Code because the interim DIP financing is not necessary for the operation of the Issuer and other debtors.” Source
On August 18, 2017, WealthColony again noted another stake, but this time much larger: 51%. Additionally, WealthColony sent a letter to Jamieson Karson, CEO, saying that the “Former Directors were no longer authorized to act on behalf of the Issuer, and requested that the CEO instruct the Former Directors to refrain from any such actions, and from holding themselves out to anyone as having such authority.“
The reaction of Soupman Inc. and the Board of Directors was interesting. It submitted a letter claiming that WealthColony SPV II, L.P., did not prove to have acquired 51% stake and needed to do so. In our previous article, we said that readers needed to follow very closely the news from the company, as it could create a share price jump. This is exactly what happened.
The following is a new letter that WealthColony SPV II, L.P., transmitted to the company on September 6, 2017 and it created the share price reaction on SOUPQ’s stock price:
“Dear Mr. Karson:
We are in receipt of the letter dated August 21, 2017 from Jeremy Johnson of Polsinelli PC, counsel to Soupman, Inc. (the “Company”), in which Mr. Johnson advises that the Company cannot acknowledge the effectiveness of the actions taken by WealthColony SPV II, L.P. to replace the Company’s Board of Directors because, among other things, it is unable to verify that WealthColony SPV II, L.P. has received the affirmative vote of a majority of the outstanding shares entitled to vote in order to remove a director. Please be advised that WealthColony SPV II, L.P. has elected to not challenge the Company’s position with respect to the effectiveness of the actions and hereby revokes the consent delivered with its letter to you dated August 18, 2017.” Source
As we said in our previous article, the fact that a market participant acquired such a large stake in the company is very positive because the firm is interested in the assets that Soupman owns. Even if the company has filed for Chapter 11, there are still firms interested in the assets hidden in the balance sheet. Hence, we believe that the fight between both parties is very positive. It also puts common shareholders on the same side as a deep-pocketed investor like WealthColony to protect all shareholder’s interests.
What happens now and Conclusion
We see two case scenarios now. First, WealthColony SPV II, L.P., could acquire more shares and claim again full control. Second, both parties could hold conversations, WealthColony SPV II, L.P., will elect its own slate of directors to the Board and a new agreement regarding the financing will be achieved. In any case, we again repeat that we believe that the presence of WealthColony SPV II, L.P., is positive. Regarding the bankruptcy court, we need to check the announcements, as they hit the tape. The battle for Soupman looks far from over.
Be sure to check out our coverage on SOUPQ!
We will be updating our subscribers as soon as we know more.
Does anyone think a PR is going to be posted?
This is getting really frustrating.
The entire industry did. US and Canada.
Jeffrey Freedman personally owns over 20%?!That clarifies everything going forward. How did I not know that?
He would never allow WC to cancel his shares since he would personally lose money. I disagree with people that say they might cancel shares, and this proves without a doubt that they will NOT.
The argument FOR the cancellation is that WC could cancel the shares (bad for them), but then own the remaining 100% of assets (good for them). It doesn't really make sense for them to do that, but the positive and negative would offset each other. Yes, lose your commons but then you own the business privately.
The fact that Jeffrey Freedman personally owns 20% of the business means he would never allow this to happen. He would never sacrifice his shares for the benefit of WC investors. That would have a net negative impact on his personal wealth. You think a managing partner of a hedge fund cares about personal wealth? One might argue that's the only thing he cares about.
Me too
Huh. That's totally inaccurate. People still own shares of a private company. Typically less people. There is still a share structure. Even in the case of a private company being owned by a single individual. Their ownership is 100%.
Revenue vs income. No one said net income of 22 grand. It says revenue.
You should understand the difference before investing anything else.
Is anyone expecting a PR tonight or tomorrow? I know WC replaced the board but do we think those people will care about issuing a PR?
I get that WC owns 51% of the shares do they would like the PPS to go up but they don't care if that happens right away.
I'd love a juicy PR to clarify things for all the confused people.
Me too. I would have thought the float was completely locked by now. There must be some flippers and are trying to cash out before the street even knows the news. Very confusing why they would do that.
The reason this is going down is people are taking profits. There were a few ihubbers that said yesterday they would be selling on the news. Their loss.
I'll be picking up the scraps. I don't think it will go lower though. This is the perfect time to load. We have been paying attention to news that is public but hasn't been publicized. Not many people know this went through. They will tomorrow/tonight. This will probably gap up tomorrow and never look back.
I've doubled down in the past 30 minutes. Weak hands are almost gone. I honestly can't believe I was able to get more under 0.05 after the news dropped. Some even for 0.037. That's nuts.
SOUPQ$$$$$
Completely agree. There is no concern regarding the cancellation of common stock.
This is set to rip up to 0.10. Just wait for news to hit and for people not watching this board to become aware of what just happened.
That's completely false
I'll be adding to my stack so I think we can bust through. This will go so much higher now.