Replies to post #5487 on Saleen Automotive, Inc. (fka SLNN)

[ronshappy]

Logic is flawed though... VNDM hasn't come down... All the selling is CDEL

[AutoInvestor]

Great Post! A real eye opener. This information adds clarity to the trading activity for SLNN
and validates specifically what has been argued on this site from the beginning.
Converted shares are being dumped in the market at any price. For KBM it's not only cash but profit based on the share price they converted at. The heavy discounts offered by Saleen management for cash received months ago is now damaging the stock price.
All the public shareholders are getting slammed because of the back door deals made by Steve Saleen and David Fiene.

[FredVestor]

It’s not KBM. KBM will get their shares in a few weeks and start unloading then. That’s when the real pain will start. Now it looks like JSJ are unloading.

This recent drop matches the JSJ’s first note being converted last week. See below. Right now JSJ is the only player making money on selling SLNN below a penny. Not even Weiner and friends are making money at these levels. They must have got 7 million shares at $0.0075. So of course they are looking to unload that before the KBM notes mature and start putting even more pressure on the stock.

On October 21, 2014, we issued a 10% Convertible Note dated October 15, 2014 (the "10% Note") to JSJ Investments Inc. ("JSJ") in the principal amount of $50,000. The 10% Note bears interest at 10% per annum (20% per annum if not paid when due) and is payable upon JSJ's demand at any time on or after April 15, 2015. Until 120 days after the issuance date, the 10% Note will have a redemption premium of 135% of the principal amount and may be prepaid without the holder's consent, and thereafter through the maturity date, a redemption premium of 150% of the principal amount, provided that JSJ must approve such pre-payment.

Amounts due under the 10% Note are convertible into shares of our common stock at the lower of 58% of the lowest trading price of our common stock during the 20 trading day period prior to (i) the conversion date and (ii) the execution date. If we fail to issue shares within three business days after receipt of a conversion notice, and for each five business day period thereafter, we are required to issue additional shares equal to 25% of the shares issuable upon such conversion notice.