OK, Rainmaker, I have had time to read that 4-year old thing you posted on XENACARE/SUN.
First thing that comes into mind, I'm pretty sure SUN had to provide a certain percent down, just like a homeloan. So he had the cash set aside/on hand to do the merge, but the Bank didn't like the deal and said no. I do agree, he probably could have afforded at that time, to loan XENACARE the money. But gas prices exploded, trucking industry- a lot went bankrupt. Shipping went to the RailRoads, it only takes a gallon of gas to ship 600 miles. And I'm sure it put the hurt on Mr. Grossman.
With gas prices doomed to go back up, Grossman has been smart enough to diversify, and take advantage of the same "political air" that was killing SUN's shipping side. Smart move to try his hand at the Missouri Clean Air Incentive.
Now back to XENACARE:
XENACARE (XCHO) hasn't filed a financial since for 2010.
In August 2008, XenaCare entered into a Share Exchange Agreement and Plan of Reorganization with Sun Packing, Inc. (“Sun”)
Wallisville Partners, Ltd and Jon Grossman and Peter Elston, shareholders of Sun, in which XenaCare would have received 100% of the outstanding shares of Sun in exchange for 33.8% of XenaCare’s outstanding common shares on a fully diluted basis.
Then a lot of the rest was same that you posted, but didn't go on to XENACARE's size of 6 employees, history of significant losses, reverse mergers and other things that show why SUN's bank said not only NO, but HELL NO.
XenaCare borrowed approximately $977,000 from Sun Packing, Inc. On December 22, 2008, XenaCare received notice from Jon Grossman, Chairman of Sun, to terminate the Share Exchange Agreement and Plan of Reorganization. Sun claimed a right to terminate due to Sun’s inability to receive consent from its lender, Frost Bank of Houston, Texas, to complete the business combination. XenaCare, after careful consideration of its options, has elected to accept the termination from Sun.
On January 5, 2009, XenaCare amended its Articles of Incorporation to increase the number of authorized shares of common stock from 45 million to 200 million.
During the third quarter of 2010, the Company entered into a new image marketing and branding agreement with Creative
Management, Inc. and a companion spokesperson agreement with Dr. Bob Arnot, a nationally known medical and news correspondent. The
terms of the agreements provide for image marketing and branding services for 36 months. The contract was prepaid through the issuance of
500,000 common shares valued at $.12 each, the fair value of the shares at the execution of the agreement.
Labor Force
XenaCare employs six people.
In addition, the Company utilizes the services of several consultants on a regular basis. We have 205 brokers who are commissioned salespeople in the field, under a three-year contract. We have a distribution center on a contractual basis, with 180 employees. XenaCare projects that during the next 12 months, its work force is likely to increase.
ITEM 1A RISK FACTORS
Risks Relating to Our Business Generally
We have a history of losses.
We have a history of operating losses in our business and have incurred significant net losses since our inception. Our net losses for the
years ended December 31, 2010 and 2009 were $3,388,189 and $2,292,444, respectively. Accumulated deficit at December 31, 2010 totals
$12,758,413. There can be no assurance that we will be able to generate revenues in sufficient amounts to generate profits.
If our cash position continues to deteriorate, we will not have sufficient cash to fund our working capital.
Our continued operating losses have contributed to the deterioration of our cash position. Further, we have used a significant amount of
our cash for consulting services, web hosting, infomercials, new product inventory and marketing materials including the publication of a book
about our products. If we are unable to generate revenues or secure financing on a timely basis, we will not have sufficient cash to fund our
working capital and capital expenditure requirements and we may be forced to cease operations. In such event, the shares of our common stock
may cease to have any value.
The rest is just the typical blah-blah, if we lose our CEO we will suffer, talk
So my curiousity at this point, is what did XCHO look like at the time that SUN thought XCHO was so great that they were willing to give XENACARE 100% of SUN's O/S for only 33.8% of XENACARE's ?
And boy, does this old thing look like Grossman was pushing this "I'll give you mine, if you give me yours" thing with CAVR.
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