Saleen fails to secure financing to fund April.
With no posted 8K to disclose new financing
investors are left to believe that Saleen will
not have the cash to pay it's bills and possibly may not be
able to cover it's payroll this month.
Saleen is losing ($812K) per month. In previous periods
Saleen disclosed desperate toxic financing agreements
with questionable lenders who charged high interest rates
and very high conversion rates with short terms .
Saleen took these rotten loans to get enough cash to keep the
doors open for a couple of months. This money is running out.
At year end Saleen only had $95K of cash.
Saleen also funded itself by taking $1M of deposits for Tesla's and
Mustang's which they did not deliver to customer's yet.
Worse than that they did not use the deposit money from customers to purchase inventory
to build cars. Now they do not have enough cash to buy inventory
to build the cars they took deposits for .
Also Saleen still owes the IRS over $550K which they are delinquent on and they owe their vendors
at least $350K which is over 90 days delinquent.
This means that they are on COD terms to buy parts to build cars.
So, to recap, how will Saleen survive April?
They need big financing support and they are required to
report any significant financing agreements on an 8K filing to
the SEC which they have not done. The only conclusion an
investor can reach is that Saleen has not secured financing and
has no path to pay it's bills. I expect that Saleen will be closing soon.
Only another toxic financing agreement can stave off inevitable bankruptcy .
These comments are my opinion.
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