Replies to post #27424 on Saleen Automotive, Inc. (fka SLNN)

[Mcab40]

SLNN Reverse Split application to FINRA will likely be DENIED in my opinion.
Recently, through its power under Rule 6490, as more fully explained below, FINRA has, with the support of the SEC, expanded its impact on the small-cap marketplace by conducting IN-DEPTH REVIEWS of issuers in conjunction with the processing of corporate actions, and DENYING such corporate action requests in record numbers.

Rule 6490

Effective September 27, 2010, the SEC approved FINRA Rule 6490 (Processing of Company Related Actions). Rule 6490 Rrequires that corporations whose securities are trading on the over-the-counter market (OTCQX, OTCQB, or OTCPink) notify FINRA in a timely manner of certain corporate actions, such as dividends, forward or reverse splits, rights or subscription offerings, and name changes. The Rule grants FINRA discretionary power when processing documents related to the announcements.

Rule 6490 works in conjunction with Exchange Act Rule 10b-17. Rule 10b-17provides that “it shall constitute a Manipulative or DECEPTIVE device or contrivance as used in section 10(b) of the Act for any issuer of a class of securities publicly traded… to fail to give notice in accordance with paragraph (b) of this section of the following actions relating to such class of securities: (1) a dividend or other distribution in cash or in kind… (2) a stock split or reverse split; or (3) a rights or other subscription offering.” Section (b) requires that notice be given to FINRA “no later than 10 days prior to the record date involved.”

The following Facts work against Saleen's application for a reverse split:
1) The 100:1 Ratio would convert SLNN's outstanding 45B shares valued at $828,900 to 450M shares O/S
But the relative price cannot be raised 100:1 to .01842 when 50% of the shares are going to convert from debt held by financiers who have records of being suspended and or reviewed by the SEC for other questionable stock transactions. The .01842 share price allows Saleen to discount the shares issued to the financiers below the market price held by the existing SLNN shareholders & guarantees their dilution & share price value decline.The purpose of the reverse split is to attract new investors not assist financiers with debt conversion.

2) Saleen is Delinquent over one-year on filing their 10Q's & 10-K
and has a history of Delinquency

3) Saleen is Delinquent on 8-K's

4) Saleen application matches Rule 6490 Rule 10b-17 provides that “it shall constitute a Manipulative or DECEPTIVE device or contrivance as used in section 10(b) of the Act for any issuer of a class of securities publicly traded.

In my opinion, for the 4 reasons above, I believe Saleen's application with FINRA for a reverse split will be Rejected.