Why though? As an OTC Investor why? It is crystal clear they are using OTC investors. Even if everything goes well business wise, which it won't and as no signs of a financial turnaround, but for the sake of the argument lets say it does. The way it's step up, you have more than 140 million shares coming in to dilute the stock within the next 2 years. That's a big f-u to OTC investors who paid full price for the stock.
Let's not forget that before going public in 2013, Saleen Automotive (SMS Supercars) already had an $11 million accumulated deficit and it was losing about $3 million each year in the previous 2 years of operation. They were already in trouble. They only went public to dump their debt on the OTC investors. They already converted a lot of their debt to shares since they went public, but the biggest chunk hasn't even converted yet. You have a big one coming during the summer 2015 through the end of the year, then another huge one in 2017.
This has to be the reason they went public because the company didn't get money directly from the public offering. Only people from W270 and their friends were allow to sell and these people had bought Saleen's stock at $0.06 a share during the merger while the stock traded at $0.50 a share. They had the whole drop from 50 cents to 6 cents to sell the shares. If they managed to sell their 10 million shares they were allow to sell during the offering at an average of 30 cents, they would have already recovered all their money and they would have been sitting on 37 million "free" shares to dump on OTC investors for pure profit.
So yeah, Saleen's stock never should have traded above $0.06. Anything above that was a scam. Now it's just a joke.
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