Red Diamond Partners LLC (RDP) History Lesson
Got to love it....we all of a sudden we have the Three Amigos show up and try to save us all....LOL
I always love how this scam is played by asking only "one" side of the story and how we have three new posters with NO posting history show up the same day with the same MO....
Got to love it, reminds me of the government when the officials say "we are here to help".
Bottom line, RDP is simply providing Big T with needed funds as a START UP COMPANY! They are severing a needed task to provide the company a path to take them to the next chapter.
Yes, the added shares "could" play a role in holding down the PP....OR WILL IT?
Each company is different in how these types of funding can or can't play on the PP.
Example; here we have a start-up that is controlled by a NAZ company (SRAX) dealing with "potentially" a very HIGH revenue model. It has a new CEO who loves chat boards and has ties to Crypto model and is taking the company down an interesting path.
NOW, we have a company with NO history of management issues, tonic financing or a business model that is questionable, during an uncertain time with all the Covid issues playing out right now.
In other words, I like this one so well, I haven't sold any of my millions of shares and in fact was adding with the news of this 8K.
History Lesson:
So, it turns out, Red Diamond/John DeNobile has some history with one of my other plays that paid off BIG for several “seasoned” traders over on the Wolf Pack. Which many sold after its run from the trips for "good" reasons.
The play/trade; Transportation Logic (TLSS), that also just so happens to have gone through a Reverse Merger (RM). FYI: I am holding shares to monitor their progress and currently not buying.
Below is “some” of the history with TLSS as it relates to (RDP) and how it can demonstrate why a lender can hold some of the stock they are issued as opposed to selling/dumping it into the market.
Transportation and Logistics Systems Inc. (TLSS): UNITED STATES (advfn.com)
On March 30, 2017 (the “Closing Date”), TLSS and Save On Transport Inc. (“Save On”) entered into a Share Exchange Agreement, dated as of the same date (the “Share Exchange Agreement”). Pursuant to the terms of the Share Exchange Agreement, on the Closing Date, Save On became a wholly-owned subsidiary of TLSS (the “Reverse Merger”).
Red Diamond provided funding prior to new management and the RM. Old management defaulted under the terms of the note. When new management came on board and cleaned up this mess. Resulting in RDP being satisfied and even retaining a shareholder’s interest in the company.
While TLSS is in no means a comparable business model; trucking under Covid issues, as opposed to a start-up internet / Bit coin model. It should be noted here that RDP demonstrated an interest to maximize a return on their investment my HOLDING shares and not selling off all of them.
Red Diamond investment into the TLSS has played well for not only them, but for its shareholders.
Background:
156 WEST SADDLE RIVER ROAD
SADDLE RIVER NJ 07458
Business Phone: 5166440554
REDDIAMOND PARTNERS LLC Top 13F Holdings (whalewisdom.com)
According to this link, on 12/2019 they held 990K shares in TLSS
What I find even more interesting, is RDP even holding shares in 12/2019, when the company had a history of not honoring their original note:
From the 10Q / Filed March 31, 2020
Red Diamond Partners LLC and RDW Capital, LLC
On April 25, 2017, the Company entered into a securities purchase agreement with RedDiamond Partners LLC (“RedDiamond”) pursuant to which the Company would issue to RedDiamond convertible promissory notes (the “RedDiamond Notes”) in an aggregate principal amount of up to $355,000, which includes a purchase price of $350,000 and transaction costs of $5,000. Pursuant to this securities purchase agreement, during 2017, the Company entered into three RedDiamond Notes in the aggregate principal amount of $270,000 and the Company received $265,000 after giving effect to the original issue discount of $5,000. The RedDiamond Notes matured during 2018. RedDiamond is not required to fund any additional tranches under the securities purchase agreement. Through date of default, the RedDiamond Notes bore interest at a rate of 12% per annum and were convertible into shares of the Company’s common stock at RedDiamond’s option at 65% of the lowest VWAP (as defined in the RedDiamond Notes) for the previous ten trading days preceding the conversion. During 2018, the Company failed to make its required maturity date payments of principal and interest on the RedDiamond Notes of $270,000. In accordance with these notes, the Company entered into default in 2018, which increased the interest rate to 18.0% per annum. The RedDiamond Notes contain cross default provisions whereby a default in any one note greater than $25,000 will cause a default in all the notes, however, this provision is only effective if there is a formal notice of default by the lender.
MAJOR difference between the two business models (TLSS/Big T)
From the 10Q / Filed March 31, 2020
TLSS had a net loss of $3,453,338 and net cash used in operations was $110,074. Additionally, the Company had an accumulated deficit, shareholders’ deficit, and a working capital deficit of $82,765,210, $26,839,561 and $27,678,817, respectively, at March 31, 2020. Furthermore, the Company failed to make required payments of principal and interest on certain of its convertible debt instruments and notes payable (see Note 6). On June 19, 2020, Amazon Logistics, Inc. (“Amazon”) notified Prime EFS in writing that Amazon does not intend to renew its Delivery Service Partner (DSP).
This statement from their filling is only a SMALL part of the issues the new management team took on.
Since the new TLSS CEO took over, the company is acquiring other companies and is turning the company around. Additionally, they have cleaned up the mess that prior management left them, including the tonic financing.
From what I have reviewed and given my business back-ground, Red Diamond’s structure here is not what our newly found friends/posters would want us to believe.
Additionally, from having been in TLSS for over a year and closely watching what management had to clean up on their RM, I can easily tell you that Lou will have a much easier path than what TLSS has been facing.
Is RDP a tonic lender, time will tell.
Watch for Form 4 filed with the SEC, 30-days after their first selling of shares received. In fact, its very possible that some of the large blocks we are watching at this time are related.
Will the new shares issued to RDP weigh on the PP here, maybe, maybe not! Given the story, management, business model and the Crypto play, this still plays well in my opinion.
To our three new amigos....welcome. Spoiler alert amigos....your going to need to bring your "A" game to this board if you want to have any kind of meaningful conversation about how we need to sell our shares now, before it's too late.
Sorry for the long post, but wanted to respond to a few of the PMs I received.
