At the end of 2012, WNTR had ($151) cash, and no other assets. No revenues.
But they had a LOI with Ludvik Holdings, Inc. to acquire $21M of "assets", for $21M of "cash and securities", of which $15M would be paid with WNTR shares, and $650K in cash. And an additional consideration of some WNTR Serieas A preferred shares.
Nowehere in the LOI the assets are in any way described. Ludvik even agrees to pay $25K in cash to WNTR (its acquirer), and provide $350K of working capital...
On June 30, WNTR balance sheet has changed a lot, $7,513 cash $15.4M "Deposits" $3M "Investment Portfolio" Only $357K of liabilities. $14.6K of income, which exactly matches $14.6K of expenses.
So, at this point the company has acquired $18M of "assets", at apparently no cost at all, and has found another $26M of "assets" to acquire the same way.
But bummer, the $26M deal didn't pan out.
In the 2013 Annual Financial, posted March 28, 2014, a new balance sheet change:
$4,342 Cash $2,234,000 Accounts Receivables !!!
$29.4M in Other Assets - Investments.
Some revenues: $207K in "Fees", $321K in Interest Income. $203K in Cost of Services.
Oh, wait, the company has almost $30M in "assets", $500K of revenues, and as unable to find the cash to pay an invoice of $22K ? (Sicilian accent) Unconceiveable !
See, some entity in China owes them $2M. That's nice. And the company magiked $8M more of "assets" by issuing Series C shares.
This company is going places!
The "acquisition" of Ludvik Holdings was kind of a reverse merger, since the CEO and owner of Ludvik ended up being the CEO and major shareholdr of WNTR:
At mid-2014, WNTR was lokking to become also a pot company:
WNTR's "assets" have ballooned to $72.8M. The company has a meagre $3,931 cash, and still $1M in receivable from China.
As liabilities, a small Note Payable of $51.2M that wasn't in the balance sheet before. $126K of revenues in the last Q, not bad for a single employee.
The Note 3 explains the Lemaro and the LudviK investment. Apparently WNTR acquired even more of the Ludvik "assets", which I thought they already owned.
Very impressive story of rags to riches. Acquire $$$ millions of assets only by using your own stock as currency.
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