Lie #4: the offering price or how Rory screwed SoundConcepts out of 4 million
Remember that video when Rory told everybody "we don't know what the offering price will be, but we assume will be close to the current stock price" that is lie #4 for Rory. In my opinion.
All you know the stock was at around $18 when this was said and the offering ended up being A LOT, A LOT less. So what happened?
Nothing happened! Rory knew about it, he knew the price a FULL WEEK before saying what he said on that video. AGP had told him multiple times that the price will be under $5, and that they were not even sure to be able to collocate all shares needed for the 20 million goal. And a full week before he filmed that video he was told the offering would be around 3 dollars and there was nothing they could do.
All this from what I know and in my opinion.
When they started the roadshow, the one that went "great" and they were "killing it" (the stock price I guess), and people were flying from Israel to see; AGP discussed with him and Jeff Super CTO that people were just not interested in nFusz and that, in their opinion, nFusz was overpaying for SoundConcepts.
They even got a recommendation not to uplist yet, but to look for alternate financing options, to strengthen the product and the company and then uplist.
But Rory wanted to be a Nasdaq company because being on Nasdaq would solve all their problems. And his CTO knew they had so many debts to pay their only option was Nasdaq, so they both marched to that goal without considering the consequences.
All this from what I know and in my opinion.
Their plan? we gonna double down on stupid videos and fake promises of products to drive the stock up and let's make sure everybody knows we are going to Nasdaq.
They announced the Facebook Live Integration (never happened), rushed an integration with Sound Concepts and released Tagg, that is no longer in use by anybody and costs around $290,000 to develop.
Made sure to post everywhere they were going to Nasdaq and the stock "might" explode. In one of the internal meetings, CTO Chad even said: "We are close to Nasdaq and this is gonna be a new ball game, I am telling all my family members to buy the stock".
Rory had to make a brief stop in the meeting and explain to him how illegal that was; FOR A SECOND TIME as he had mentioned something similar in another meeting.
So even people inside the company were drinking the Kool-Aid. But Rory knew the truth, he knew what AGP told him since the first meeting: we are having troubles selling this thing, and the best offer we are getting is around 5 dollars per share.
He was sure if he made the stock rise, the offering price would rise. And he made it, he took the stock to $18 per share, he even rejected offers from AGP clients at 6-7 dollars per share because he was sure he would get better offers.
All this from what I know and in my opinion.
But a full week before he filmed that video where he lied about the offering to be expected close to the stock price, AGP told him: Nasdaq doesn't work like that, they are not gonna pay you what your pumped stock says, they are gonna pay you what your balance sheet shows and yours suck.
Two days before that video was filmed AGP even told Rory, we cannot sell the full 20.5 million, you need to find a solution or some of our clients will pull out. Because anybody with a calculator knew, even with the 20.5 million they were going to end up short in cash.
Against the wall Rory decided it was time to screw over Sound Concepts, he called them, and he did what he does best he threated them, he told them either you take only 11 million or you take nothing because this deal is about to burn to the ground.
Then he applied his second-best trick: lying. He told them all this was because investors and banks are afraid of OTC company, but once they were on Nasdaq the loans and investors from banks would pour on them.
SoundConcepts had drunk the kool-aid, and they decided better 11 million than nothing, worst case scenario they would get their company back when Rory has to sell it back to them for pennies on the dollar.
Rory called AGP and told them he got SC on board, to go ahead and take any offers available, and they did.
All this from what I know and in my opinion.
Then he turned the camera, and lie to all investors right to their face and on video. He could have said they were not able to discuss the offering price, but no... he decided to go a step further and be misleading by saying: "we assume will be close to the current stock price"
Coming soon: Lie #3 the Microsoft "partnership"
