Airys, I applaud your efforts to keep us informed. I have been reading the board, and understand that a lot of things are getting reported well after the fact, ie Wessal loan considered but not happening; Wessal buying, wanting control, and selling; Cement deal happening then getting canceled, etc etc.
The scenario that makes sense to me, and I would like for you to confirm it with PV, is Sulja got Loftwerks and needed help to make it a go. PV decided to help. PV is a successful broker of supplies and commodities, by his report.
The company used PRs about deals they were trying to close which made the stock price go up. The company sold 100MM shares, raising $12MM. They initially expected to get the loan from Wessal for $25MM, but Wessal also wanted control of the company. This relationship did not work for them. With the $12MM they raised by selling shares, they dont need Wessals capital, so told him they will work with him but not as a partner/owner (never burn bridges in the brokering business). Wessal sold?? at least some of his shares.
In the brokering business, one makes confidential contracts with non disclosure and penalty language included. Putting a buyer and seller together does not guarantee payment to the broker. Most of the time the buyer or seller is really another broker (who wants to be and may be acting for a principal) who may be direct with the real buyer or seller. If there is much of a chain, and if one side discloses their source, the real Buyer or Seller will circumvent even with a contract in place to be direct with the other side Buyer/Seller ("sue me" attitude). After all, why pay the 1% (millions of dollars) to brokers? PV needed to sell the stock to raise capital to secure the source of product direct with the owner by buying it or placing an option on it, which then guarantees he has it. Now he can sell it direct to the Buyer without worrying about being circumvented. Now he can purchase the probably required performance bond.
PV may not have owned shares in the past, but with the price drop and the above scenario, I would wager he and SS are getting a sizable position (51%?) so they can control the company and benefit through ownership in addition to being the CEO. I doubt they expected Sulja to go to over $100MM in capitalization on the first run. Now they know the potential and need to set it up to benefit them and their families, so on the next run it becomes the source of funds to buy and control the commodities they are brokering for delivery. Now they are in a position to do the big deals they were dependent on Wessal to support in the past. I doubt they will let such a profitable vehicle as Sulja wither on the vine. The stock lets them multiply their earnings by whatever PE the market assigns.
Bottom line, they need access to shareholders and public money to pull off their big dream of being major brokers to the ME and all over the world. It is almost impossible to be a broker of these products unless you are able to control the source, imo. I wonder if the banking that had to be completed in the last cement PR was actually funds that PV controls. I also wonder if Homeland Security has to clear the funds before they can be lodged with the Sulja company in NV. If so, it may take a few weeks. I bought more shares because I think PV wants to make money and not "spend time like Martha" and this is how he will do it.
So, there was a lot going on behind the scenes. I expect there still is. I think what has happened, imo, will be to the benefit of PV and SS, and shareholders which they need in order to do more than put up fluff PRs. I was happy that Snips confirmed the accounting firm has received the financials, and is awaiting further info to complete the audit. All imo. Maybe you can check this out. Try to see some paperwork by fax, etc. to confirm. Thanks. jr
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