What you just don't seem to get, is that Steve Saleen has already gotten himself a rich sugar daddy. And that rich sugar daddy is GTA. If you go back and read my previous posts, although lengthy, I think, I made some pretty good analogies in regards to our current disposition as shareholders. Thinking back, remember when the first loan deal with GTA for the $500,000 was quickly rescinded and replaced with the revised paid in full royalties advance. I hope, that I'm just being paranoid, but here's my worst outcome scenario in regards to the SLNN & Steve Saleen /Steve Saleen & GTA relationship.
The royalties agreement was negotiated between SLNN's debtors, SLNN and GTA. And it allows SLNN to declare bankruptcy while providing a continued royalty stream to SLNN's debtors and allowing Steve Saleen and GTA to walk off with everything. The royalties agreement was never intended to benefit the common shareholders, they will see zip. Without the royalties agreement, Steve Saleen would have lost all of his IP to his debtors. If you recall SLNN didn't just give exclusive marketing rights for the Asian market, but gave GTA and himself the exclusive rights to all IP and manufacturing rights as well.
You may ask, why not just keep SLNN whole or let GTA buy us out. Because at present SLNN is insolvent and can rap up the corporation and declare chapter 7. As it stands now the debt are payable in full. Taking a 20/1 pe ratio for ease of clarification the $10 million dept would convert to a loss of roughly ($200 million) in market capitalization. As it stands, these debts have already been ordered by a court to be payed in full. This royalties agreement provides Steve Saleen the opportunity to defer the outstanding debt over a longer time. By dumping SLNN and starting fresh, the new company will not be burdened with the ($200million) negative market capitalization.
And trust me, I hope I'm wrong due to the fact that I've already sunk over $20,000 into this stock.
AI
