Two words: Toxic notes
What do you do with toxic debt? You dump it as soon as possible.
KMB Worldwide, Inc.
LG Capital Funding, LLC.
JSJ Investments Inc.
Rock Capital, LLC.
Vista Capital Investments, LLC
Coventry Enterprises, LLC.
Typenex Co-Investment, LLC
JMJ Financial
These are all the firms that lent money to Saleen last year in exchange for short term convertible debt. Together they lent over $1.2 million to Saleen. These notes are set to convert into close to 100 million shares.
These firms don't work together. They are not trying to make a long term investment. They want a return on their money quick and now knowing that all these other firms are here to do same, they will all rush to sell their newly converted shares before an other does and put even more pressure on the stock.
Some people with a lot SLNN shares know very well that this is coming and soon. The first of these notes will convert this month, then more this summer and none stop through 2016-2017. So these people, I'm referring to the group of investors from the reverse-merger, they have been selling and this is why the stock now sits at only $0.01.
Saleen's entire business last year revolved around selling debt. Without it they would have been closed by now. The people buying debt from Saleen will have ended up never paying more than $0.02 for a share of Saleen while OTC investors have been paying $1.00, then $0.50, then $0.40, then $0.30 and so on. This is a fact.
Now that the stock is below $0.02, Saleen clearly seems to be unable to close on more debt financing. Of course, since it's not attractive for the kind of deal these company are making.
