The official Psycho Response to SA article on SPLI
The official Psycho Response to the SA article on SPLI
Full Disclosure: I am long in SPLI and have no plans to sell in the next 72 hours, Days,
“CEO Dror Svorai previously committed 3 criminal offenses, has 12 federal tax liens, was accused of breach of fiduciary duty and securities fraud.”
Dror was charged with several offenses, but never convicted
“Dror Svorai has been involved in a number of failed penny stocks; one of which was suspended by the Securities and Exchange Commission.”
Honestly, who cares if he was involved with several penny stocks that failed, that’s the same as saying someone had several failed businesses before they had a successful one. Which is the case for a large majority of business owners in America today. SPLI is his masterpiece.
“Clear violation of Exchange Act Section 10A(a) in tandem with the resignation of the company's accountant.”
This is the author’s opinion based on his interpretation of that particular guideline, not fact, and not something that was violated.
The author goes on to bash financials from the pre-merger company before it was what we know as SPLI today, despite his “updated version” he even admits to having limited knowledge of the financials that he is calling into question.
The fact of the matter, is that in startup mode, most companies are operating at a deficit for sometimes years at a time due to things such as but not limited to:
Expansion
Acquisition
Production site build out
Inventory
Marketing and Advertising
Distribution
Etc.
Despite the mentioned above Dror and SPLI has produced extremely significant gross revenue numbers at this stage in the game far outperforming that of its competitors.
I would not be surprised if the net profit of that reported revenue exceeded 20-30%.
To sum this up, SPLI should in all actuality emerge as a profitable company operating in the black (positive cash flow) in its 1st year of existence. This is not common and paramount to company’s success.
In addition, if you completely throw out the numbers, the company is setting the standard in the quality of product, innovation, industry leader partnerships, and regulated health and safety standards in the market today.
The THB vapor box seen here
Insight into why E-Liquids are not all the same seen here
Exclusive “American Green” product line with ERBB seen here
Acquisition of online E-Cig retailer seen here
Combine the above with upcoming catalysts in the ticker/name change as well as full, audited financials and you are holding a genuine fucking unicorn.
In this sector you will see certain companies start to gain momentum and become targets for hit pieces similar to the article out today. It has happened with PHOT, ATTBF, ENRT, TRTC, MCIG, etc. who have all had articles come out bashing the stock coinciding with a short attack. It comes with the territory.
SPLI is a foundationally solid company with a very bright future ahead. Take all of the shit talking with a grain of salt because it will continue to happen.
The CEO Dror Svorai has been and will continue to be completely transparent about his past and what the company’s plans are moving forward. He has welcomed several members of the wolfpack to come visit, take a tour, and answer any questions they may have.
I would encourage you to wipe your ass with that article and do the DD yourself. You won’t be disappointed.
AI
