Sulja Bros. Building Supplies, Ltd (SLJB)

[S.A.G.]

Smart Investor, here are your answers as given to me by Petar.

You asked:
Why Wessal has sold out their shares(assuming they exist and they had some shares)


Answer:

Wessal didn't like the publicity they were getting from the media. In fact, most middle east companies do not appreciate the publicity. In addition, Wessal didn't act as they were expected once the publicity hit in full force and Petar said he was somewhat relieved they were out. However, he continues to have a relationship with them through his company, Kore, which benefits Sulja, since Sulja supplies Kore.

Wessal is a real company and they are registered in Saudi Arabia. However, Wessal/Red Sea Group is no longer a part of the equation. They sold their shares, but did help them to gain connections in the Middle East. This actually gives them more control, as they don’t have to answer to Wessal.


You asked:
Why PETAR doesn't own any shares at all?

Answer:

I honestly don't remember but I think he said something to the effect that it would raise questions and doubt about why is is a shareholder, with the buying and selling problems that it would bring. In addition, I recently asked him why he didn't take advantage now that the price is so low and buy back some shares to put into the company treasury. He said it would only make him look as if he planned this whole thing and raise more questions.

You asked:
Why they've bought SAM for just $500 000 or about 1/12 sales?


Answer:

From what I understand, the Sams deal, although it appears to be only 500k, was a bit more. They handled the transaction in a way that would minimize taxes and incumberances on the transaction. As I understand it, Canadian taxes are pretty high. The original price it was being sold for was 1.25 million. No one drops the sale of an asset they are trying to sell over 50% of the asking price without getting compensated in another way. I will have more answers for you in the near future. I have my kid litterally pulling me to get off this computer. LOL

Be back in a little bit.


Thanks for your patience,

Airys418