Strategic Asset Leasing Inc (LEAS)

[trader59]

"Casting doubt?" Just a reality check.
When ANEW moved into this shell, they gave their owners preferred stock convertible into common shares at 100:1. They announced a RS of the common stock of 1:2500. The intent of those two things was to ensure the folks who owned ANEW privately would wind up owning the bulk of the equity in LEAS, which makes perfect sense. The CEO has about 30% of the ownership, so you'd expect him to keep it. Stock was dead, though.
Enter in the RWOD SPAC, which had already had 1 or 2 failed business combinations, mainly because the target companies weren't worth it to the RWOD shareholders. They make a deal with ANEW, somehow assign a "value" of $60M to this company whose stock is dead on the OTC and, even if you overlooked the walk up wash trading over the last couple weeks, is still trading at a market cap of about $6M and with an asset value of less than half that. The deal has dragged on, and all the while the RWOD shareholders are redeeming their stock (returning it to the company to get their investment back) and ANEW/LEAS has been sitting doing nothing because they have no money to do anything with.
Up until recently, the RS of LEAS was still mentioned by the company, now the only thing they say is they don't need it. They don't need it because, if this deal goes through and they get RWOD shares to distribute, they can just go ahead and give the bulk of it to their preferred shareholders, the ones who actually invested in ANEW when it was private. The CEO controls the vote and can do that, and it is well justified as described above. That's why there's nothing whatsoever about the distribution of those shares in any of the documents, they'll use a formula to divide between preferred and commons that will give the same results that the RS would.
That's if the business combination even happens. The shareholders of RWOD have to be looking at this proposal and rolling their eyes. Put yourself in their shoes, to let this $6M company inhabit your SPAC, you have to allow the dilution of the stock of nearly double the current O/S and that company gets to keep whatever cash is in the treasury. No way no how would I vote for it, I'd take my investment back and walk away. So would you.