Replies to post #30878 on Saleen Automotive, Inc. (fka SLNN)

[BigBake1]

Right before they stopped filing:

During the nine months ended December 31, 2015, Note holders converted $473,731 of principal and $33,040 of accrued interest into 750,387,791 shares of the Company’s Common Stock. In addition, in June 2015, the Company agreed to allow one note holder to assign their then note principal balance of $49,240, which was in default due to non-payment after maturity date and insufficient availability of Common Stock available upon conversion, to a separate note holder, who is also a note holder under the 3% Notes and 7% Notes, for the new note holder’s payment of $77,000 to the original note holder. As a result of this assignment, the Company recorded $27,760 as loss on extinguishment during the nine months ended December 31, 2015 as a result of the increase in principal balance from $49,240 to $77,000. As of December 31, 2015, the principal balance of the convertible Notes outstanding was $172,254 and potentially convertible into 269,824,686 shares of Common Stock including accrued and unpaid interest.

They converted debt to shares for sale and those were dumped into the market, that is why the float exploded here to over 2.3 billion in a hurry.

It is legal if they properly convert the debt within Rule 144. How else do you expect them to pay their short term money loans? They certainly had no money on the books and their only collateral was already tied up in other debt deals. That is why they went to toxic financiers, they gave small loans with ridiculous terms, floorless conversions.