Saleen Automotive, Inc. (fka SLNN)

[FredVestor]

No at $0.02 that’s just the $2 million in convertible notes held by Weiner and associates.

The really toxic debt is held by about half a dozen companies and conversion started last month, consequently the stock went sup-penny for the first time, and it goes on all through the summer.

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

There’s no way to know how many shares until we know the stock price at the day of conversion. Most of the notes have a 40% discount on the lowest trading day out of the past 20 at the time of conversion.
For example the most recent note to have converted is JSJ Investments’ first note (they also have a second). They probably got around 7 million shares at about $0.0075. they are likely the ones selling at this sub-penny level since they would be the only ones making money from it.
What is important is that these kind of lenders going for 40 to 50% discount on the lowest trading really don’t care about the price of the stock nor the future of the company. As soon as their shares convert they are making money. All they need is being able to unload these shares.

There’s also the toxic notes held by KBM:
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003160/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003262/form8k.htm

The guys behind KBM don’t have a great past:

Saleen took 3 different loans from a company called KBM Worldwide(See the 3 8K below).

As far as we can tell, these loans have nothing to do with Weiner and friends, yet this new alliance is troubling on its own. All together, these notes are worth $211,000 - $224,000 with interest. This might not seem like much, but with the ridiculous terms attached to the notes (0.6 of low 5 of 10 days), if the notes were converted today, they would get 28.7 million shares at $0.0078. These 3 notes matures in June and July 2015. We can expect tremendous pressure on the stock from these shares starting in the next 3 months.

Now who is behind this KBM Worldwide? Two brother. Seth and Curt Kramer.

These guys are not the kind of people you want SLNN borrowing from and even less owning shares of SLNN.

Seth Kramer conspired in a lender mortgage fraud case and consequently had to settled for $1.2 million and he is barred permanently from HUD programs.

United States Attorney’s Office Recovery press release: www.justice.gov/usao/nys/pressreleases/December11/cambridgesettlementpr.pdf

His brother Curt is no better. Out of his 2 investment vehicles prior to KBM Worldwide, one received a cease and desist from the SEC and the other was dissolved. Much like his brother, he had to pay $1.4 million to settle the charges with the SEC. A company even had to cease all relationship with Curt Kramer, from which they borrowed money, in order for FINRA to accept their reverse split.