True, Saleen was able to borrow $2.5M from five lenders at a high interest rate and guaranteeing that if they default on the notes that the interest rate jumps to 24 % and they get Saleen shares at below market price . Also, Saleen will have a much more difficult time borrowing money again . All of it's limited assets have been pledged to it's lenders . Even the one S7 has been borrowed against . The $2.5M they borrowed has been spent paying back due payroll taxes and delinquent older loans. So now when the 10Q is published this week , the debt will be higher.
The "Going Concern " statement from the CPA's clearly states that Saleen must rely on selling enough stock at a high enough price to raise enough money to pay it's bills. My question is why would anyone invest in this company ?
These comments are my opinion . Please research and invest based on your conclusions.
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