I have a very low opinion of FBCD. And I hate saying that knowing you are a shareholder. The whole deal sounded so good, and I believe Super Rad Corp is a legitimate company. Probably no where near the level they were at 3 years ago, but still a legitimate company all the same.
The main reason I have a low opinion of FBCD is because of the way that they did all those press releases promoting FBCD by using assets that didn't belong to them yet and because LeClerc misled investors for months leading them to believe the FBCD / Super Rad Corp agreement had closed.
Even in the face of obvious proof that the agreement hadn't closed yet Leclerc still continued to mislead investors into thinking that it had. I was posting in March that the agreement hadn't closed yet, yet the misleading by the company continued well after that.
You have to ask yourself why would somebody spend so much time misleading investors like that? What was his intent?
If he really believed that the deal would some day close then why not be honest from the start?
You can't dismiss all the similarities between this deal and other deals in the past that were never fulfilled by Leclerc and FBCD.
I've even heard some pretty strong rumors about FBCD paying some message board posters to pump the stock.
Legally I think LeClerc may have crossed some lines and may be guilty of fraud on some level because of the way he mislead investors. I would love to see the SEC step in and investigate all the press releases and LeClerc's trading record and business dealings with certain investors and have them determine if any lines were crossed or anything illegal was done.
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The part I'm most confused about is why would Super Rad Corp management put themselves on the hot seat too by allowing for all this misleading information to take place using their name?
It is easy to assume they are somehow gaining something from all of this even if the deal doesn't close, but I don't know that is the case.
The last 10Q does say that Super Rad Corp received their 12,500,000 shares for and in consideration of their assets. That could mean that they get to keep those shares whether the agreement closes or not.
Maybe LeClerc is just that convincing that Richlin really does believe the agreement will close some day. Maybe Richlin just doesn't know any better and doesn't realize the fine line that FBCD may be crossing with their misleading press releases.
My first thoughts in March when the fraud scammer Form 3 filing came out was that Richlin had lost his patience and may have briefly gotten upset with LeClerc and may have been responsible for the filing.
We have heard no follow up about if the perpetrator was ever caught so I suppose that possibility still exists.
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I have been exploring one other possibility for all of this.
I noticed that in the last 10K filed FBCD had no assets, no revenues, no operations, and as of November 15, 2010 claimed to have no full or part time employees. By definition this would make FBCD a shell company, but they do not claim to be a shell company in their filings.
Maybe the SEC took some issue with this and that is why they have had trouble applying for a name and symbol change and they have had trouble getting the pre14C approved.
If that is the case, the earliest that any agreement with Super Rad Corp could close may not be until November of 2011.
I'm still wondering where the $250,000 will come from to meet the terms of the agreement.
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On top of all of that there is some very suspicious things located in the FBCD filings like ...
In 2008 the Company paid the balance due of approximately $15,000 on a vehicle owned by an officer. The Company makes payments of $1,500 per month plus costs on a building lease held in the name of an entity under common control. The lease runs through July 2009, is noncancellable and contains a renewal option for two (1) year terms.
and
For the year ending July 31, 2010 our total operating expenses were $7,079,071 compared to $1,144,585 for the year ended July 31, 2009. We attribute the increase to costs of non cash compensation. Our general and administrative expenses consisted of the following: salaries, filing fees, bank charges and interest, professional fees (accounting and legal), telephone and other associated office fees, management and consulting fees (including investor relation fees), marketing, and mineral property expenses.
They had no mineral property expenses during that 12 months. That's a pretty outrageous number for what amounts to basically just an empty shell that only had 1 officer during that 12 month period.
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Will the deal end up closing within the two weeks that Richlin said he hopes for on the CC? No way in my opinion.
Will the deal ever close? I doubt it, but that is just my opinion. I personally think the chances of LeClerc resigning are better than the chances of the Super Rad Corp deal closing.
That is all just my opinion because you asked. You have to buy and sell stocks based on your own opinion so always do your own dd while considering the dd of others. I don't know what the share price will do from here. It could bounce around for a while in anticipation of what most investors are calling a promise from Richlin that the deal will happen within two weeks, but after two weeks will the PPS take another hit if the deal hasn't closed yet?
How low could the PPS continue to fall the longer and longer this drags out? No way to know for sure. So many factors can play a part in the PPS.
If it is money you can afford to lose you can always hold off and take your chances that the deal will some day close. If you don't have enough confidence that the deal will ever close you can always hope for some kind of press release that could help the share price enough to minimize your loses as much as possible. I really don't know. It sure is a tough choice about what to do from here. Whatever you decide I hope it works out for the best for you.
