Kali Inc. (KALY)

[nodummy]

The selling is coming from a $15,000 Debt Note that Warren "Skip" Wheeler put on the balance sheet some time during 2015.

The Note converts at $.001875/share (based on information in the filings) which is actually a little better than the standard rate of $.001/share that Wheeler usually used in most of his many many past tickers.

The whole timing of the Note is suspicious since the ticker was abandoned in 2012 eventually getting revoked in 2014 by the Nevada SOS.

You can see on the NV SOS site that Wheeler came along and reinstated the ticker on February 2, 2016

http://nvsos.gov/sosentitysearch/corpActions.aspx?lx8nvq=Bu2h8fMr%252fPS86ssWKdmlBw%253d%253d&CorpName=KALI%2c+INC.

That means that nobody was doing anything with the shell between 2013 - 2016 when it got reinstated. So how did a debt Note end up appearing on the balance sheet during 2015 while nobody was around doing anything with the shell?

I think it is safe to assume that the $15,000 debt came from legal fees incurred by Warren Wheeler when he hijacked the shell. He would have had to file a custodianship petition with the Nevada courts and would have had to hire an attorney for the proceedings. That petition was probably filed some time in 2015 since it usually takes a few weeks at least to get the whole process completed.

Still assuming that Wheeler managed to get an attorney to give him an opinion letter using rule 144 to get the stock free trading after the debt aged for 1 year (despite the fact that rule 144 wouldn't apply since the KALY shell was a shell company during 2015) that would mean the debt had to have been created in early 2015 some time. I'm just not convinced that Wheeler began the custodianship proceedings that early during 2015.

I tried to look up the court filings in the Clark County Court records and despite the site bringing up 10 other custodianship filings done by Wheeler, I couldn't find the case where he applied to get control of the VLOV Inc shell.

https://www.clarkcountycourts.us/Anonymous/default.aspx





So my next step was to look in the KALY filings to see if he disclosed the case number for the custodianship filing. Unfortunately he gave the case number for another ticker not for KALY:




I looked up that case number (A-12-664540-B) in the Clark County Court system and found this:

A-12-664540-B
Ricochet Trading, Inc., Plaintiff(s) vs. Globaltech Holdings, Inc., Defendant(s)
07/02/2012

This is Globaltech Holdings Inc
http://www.otcmarkets.com/stock/GLBH/profile

It's a completely different shell


Anyways back to the debt Note

You can see in the Annual Report for 2014 that Wheeler put together and filed in April of 2016 after hijacking the shell that there was no debt on December 31, 2014

http://www.otcmarkets.com/financialReportViewer?symbol=KALY&id=152910

Then you can see in the Annual Report for 2015 that Wheeler put together and filed in April of 2016 after hijacking the shell that there was a $15,000 debt Note added to the balance sheet during 2015 - again that could only have come from the expenses incurred by Wheeler in gaining control of the shell

http://www.otcmarkets.com/financialReportViewer?symbol=KALY&id=152911

Unfortunately the "disclosure" statement for the 2015 annual report gives absolutely no disclosure about the Note. We aren't told when it was issued, why it was issued, what the conversion rate is, or what person or entity was assigned the Note.

http://www.otcmarkets.com/financialReportViewer?symbol=KALY&id=153316

I have, however, followed many past Warren "Skip" Wheeler shells. Some of which ended up getting some high profile type paid promotions like AMLH, IGPK, and COLV and others that got lower level awareness like what has been going on here or has happened with HAON or AWWI.

From following past tickers I know that he usually does all of his Note conversions or share sales at $.001/share or less regardless of what the market price of the stock is. He also has used foreign entities in the past to hold the debt which makes sense since he would be considered an affiliate meaning that if the debt was kept in his name he couldn't get free trading stock from converting the debt. Common foreign entities he has used in the past include - Elco Securities Ltd, Crownhaven Limited, and Exuma Capital just to name a few.

Moving forward we see that as of the most recent quarterly report filed for the period ending June 30, 2016 shows that between March 31, 2016 and June 30, 2016, 5,333,333 free trading shares of stock were issued towards debt

http://www.otcmarkets.com/financialReportViewer?symbol=KALY&id=158728



The balance sheet shows the Note is down to $5,000



Simple math tells us that $10,000 was converted into 5,333,333 shares. That isn't quite a $.001/share conversion rate like he usually uses but is still a very friendly rate of $.001875/share while the stock price was $.08/share.

At that same rate the remaining $5000 will become 2,666,666 free trading shares of stock.

That's 9,000,000 shares total for $15,000 worth of debt which ended up on the balance sheet because of costs incurred by Warren "Skip" Wheeler in gaining control of the shell (money that should have come out of his own pocket not the pockets of the retail shareholders).

If he can manage to sell all 9,000,000 shares at an average of $.07/share he makes $615,000 after subtracting the $15,000 of expenses he incurred by hijacking the abandoned shell.

It is certainly way more profitable to keep the shells after you hijack them and use them to create debt Notes and free trading stock to sell into the market than it is to flip the shells (sell them to new owners) since they usually only demand a price of around $30,000 - $40,000 these days.

Definitely some shady business going on here and in ALL of the past Warren "Skip" Wheeler shells. Maybe some day the regulars will catch on to his little insider enrichment schemes.