Ener-Core, Inc. (ENCR)

[makingwaves]

This does not bode well for Ener-Core. Or maybe it does!!

Item 4. Purpose of Transaction

The purpose of this filing is to disclose to the investing public that SAIL Venture Partners LLC, SAIL Capital Management LLC and all SAIL affiliates invested in Ener-Core plan to use every lawful means to effectuate substantial changes in the composition of the Board of Directors of Ener-Core, including, but not limited to, the replacement of the majority of existing directors and management.

IMMEDIATE ACTION: Ener-Core should replace its Chairman Mike Hammons and its CEO Alain Castro immediately. They have both consistently failed during the three year terms of their tenure to achieve any significant revenues or market penetration. The ENCR stock price has declined over 95% on their watch at the same time as they diluted SAIL’s percentage ownership dramatically from 48% to 15.62% for no reason related to building shareholder value. During this time while they were destroying shareholder value, they were taking excessive management compensation and expense reimbursements. Alain Castro is an absentee CEO who is rarely present at company headquarters or operations. Ener-Core should name Ian Copeland the Chairman of the Board of Directors and should then launch a search for a new CEO.