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Cannabis-Rx Inc (CANA) – updated research report

05 Feb Cannabis-Rx Inc (CANA) – updated research report

 

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Tomorrow Longview Real Estate Inc (LONR) becomes Cannabis-Rx Inc (CANA) making the issuer a fresh new pot ticker and the first ever fresh new pot ticker set up for a possible future paid promotion.

We first researched the ticker back on August 4, 2013 following a big forward split.  I will re-post that research below along with all the updates since August 4, 2013.

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On Friday, August 2, 2013, L3 Corp conducted a 110:1 forward split and a name change to Longview Real Estate Inc.

The forward split raised the free trading share count from 270,000 shares to 29,700,000 shares automatically making LCOR a possibility for a future paid promotion and giving us a good reason to research the ticker.

 

The Set-up

L3 Corp was originally set up as a Delaware business entity on September 14, 2011 by Haim Perlstein.

Haim Perlstein who is from Israel can be linked to Blue Earth Inc (BBLU) as an original shareholder and Beijing Logistic Inc (BLGL) as an officer, director, and beneficial owner from 2006 - 2007.

Two more Israelis were appointed the officer rolls of the shell. 30 year old Noam Katzav who was a fitness instructor at a health spa/gym in Israel was assigned the role of CEO, treasurer, and director. 26 year old David Zohar who was working at a troubled youth center was assigned the role of secretary and director.

Noam Katzav was issued 1,230,000 shares for $1,230 ($.001/share). David Zohar was issued 200,000 shares for $2,000 ($.01/share).

The group had a forward looking business plan to develop and market a fitness apparatus. The fitness apparatus will be used to allow the user to do multiple different types of stretches. They claimed to have a design for the stretching device and to have done 10 prototypes for testing.

www.L3corp1.com was registered to be used as the future company website once the apparatus was ready for marketing.

L3 Corp filed an S-1 on December 14, 2011 with the plan to sell 1,000,000 shares at $.20/share to raise the cash needed to complete their forward looking business plans.

Helping with the S-1 filing were attorney Jonathan Strum (OLIE, CACT, EPSO, SRIT) and accountant Weinberg & Baer LLC (linked to several past promoted tickers)

L3 Corp told the SEC they would have to raise a minimum of $55,000 to move forward with business operations.

The S-1 filing was approved by the SEC on January 31, 2012 after one amendment.

 

*** Later we would learn that BLKG and EPSO were set up as mirrors to the LOCR shell. - more info here

 

Seed Shareholders / Failed business operations

L3 Corp would end up selling 270,000 shares to a group of anonymous seed shareholders raising $54,000 putting the company just short of their minimum amount needed of $55,000 giving them a convenient excuse to intentionally fail and then sell off the shell for the next step towards a future paid promotion.

 

Change of Control

On November 7, 2012 after never making any real progress with their fake forward looking business plans, Noam Katzav and David Zohar sold their 1,430,000 combined shares to Dr. Kent Ausburn for only $2,000.

Dr. Ausburn had a long history with mining exploration companies included several publicly traded tickers on the Canadian stock exchange as well as a shareholder in CHHL.

 

Suspicious Debt Notes

Dr. Ausburn’s very first act was to issue two anonymous Promissory Notes totalling $150,000 with 18% interest rates. L3 Corp did not even disclose the name of the person or entity holding those Notes.

 

Change of Control #2

On June 25, 2013, Kent Ausburn sold 1,130,000 of his 1,430,000 share to Miramar Investors Inc for $1,130. The other 300,000 shares were cancelled. This gave Miramar Investors Inc majority control of the LCOR shell. Kent Ausburn resigned from all of his positions and was replaced by Llorn Kylo.

According to that 8K filing the 1,130,000 shares will amount to 66% of the outstanding share count. That means that there has to be more than just the 270,000 seed shareholder shares out now. 1,130,000 is 66% of 1,712,120. That means there has to be 582,120 shares outstanding besides the ones owned by Miramar Investors Inc. So who owns the other 312,120 shares? Was the 66% number an error?  Those shares would end up disappearing from the filings.

Miramar Investors Inc is a Miami, Florida based entity controlled by Manuel F. Fernandez.

Llorn Kylo who is from Scottsdale, Arizona was the owner Kylo Homes which developed, owned, and managed a portfolio of properties for sale and rent from 2009 to June 2012. Mr. Kylo also was the CEO of Form 1 Land Inc from 2002 - 2009, a director for Flex Resource Co Ltd which now trades as Defense Solutions Holding (DFSH) from 2007 - 2009, and is currently an officer and director for Berkshire Homes Inc (BKSH) which recently went public, but has yet to start trading. What is interesting is that Llorn Kylo is followed by Clinton Greyling on twitter (one of only 14 followers).

 

Name Change / Forward split

On July 3, 2013, L3 Corp (LCOR) filed to do a 110:1 forward split and name change to Longview Real Estate Inc (LCOR). The change went into effect on August 2, 2013.

 

New Share Count

Authorized - 1,500,000,000 shares
Miramar Investors Inc - 124,300,000 shares (restricted)
Seed shareholders - 29,700,000 shares (free trading)

 

August 4th Conclusion

Llorn Horn has a background in real estate and the name change suggests that the business operations will change to something involving Real Estate. Next we will be watching for some kind of 8K announcing an acquisition agreement to bring some assets or new business operations into the ticker. We’ll also be watching to find out what the share count is and who those other 34,333,200 shares might belong to.

Eventually once all the new business operations have been arranged we’ll be watching LCOR to possibly see some future paid promotion activity.

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Symbol Change #1

On August 29, 2013 when the 110:1 forward split cleared, LCOR got a new symbol, LONR.

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Promissory Notes / Acquisitions

On September 16, 2013, LONR issued two Promissory Notes totaling $4,100,000.  LONR did not disclose in any public filings to whom those Notes were issued.  The other noteworthy thing surrounding these suspicious Promissory Notes is that just 14 days later on the 10Q for the period ending September 30, 2013, despite only being 2 weeks old the Notes were listed as "Long Term Liabilities".  To be "Long Term" they have to be at least one year old which they obviously were not.

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The Promissory Notes were used to purchase 8 properties at a total cost of $2,560,780 located in Florida, Illinois and Washington. Some of these properties are held by LONR and some are held in its wholly-owned subsidiary, Praetorian Capital, LLC, a Florida limited liability company formed on October 22, 2013.  According to the filings at this time, LONR intends to renovate these properties and sell them for a profit.

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Suspicious Foreign Account

Despite the controlling entity of LONR, Miramar Investments Inc, being located in Florida, the LONR filings tell us that the 124,300,000 shares owned by Miramar Investors Inc are not held in an American account.  They are not even held in the name of the director of Miramar Investors Inc, Manual F Fernandez.  Instead they are held in a Swiss account using a nominee officer named Hans Wild.

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That address belongs to Bank Gutenberg AG which has come up in lots of our previous research most recently in our WTER report and our OCTX report.

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Basically we have uncovered research that definitively links Bank Gutenberg AG to pump&dump activity.  The way the scheme works is as follows:

(i) the Participants set up a foreign corporation (“Blind Corp.”) in BVI or Panama using an anonymous trustee to avoid detection;
(ii) the Participants then cause the Blind Corp. to open an account with Gutenberg in Zurich;
(iii) the Participants obtain control of a U.S. Shell company and create a bogus business plan;
(iv) the Shell Company is structured so that the Participants can obtain control of the public float;
(v) the Participants arrange for large blocks of (“illegally”) free trading unregistered and non- exempt Shares to be issued in the name of the Blind Corp. and delivered to Gutenberg;
(vi) Gutenberg deposits a portion of the Shares into its global custody account with a large U.S. institution;
(vii) Gutenberg deposits a portion of the Shares into Delivery vs. Payment (DVP) accounts with specific market makers;
(viii) Gutenberg places buy orders with a first market maker and sell orders with a second in order to create the appearance of volume and demand for the Shares;
(ix) the Participants bombard investors with misleading and false public information including unfounded and inflated price predictions, bogus research reports using both phone rooms, spam email and stock-hype websites which promise unsupported returns and baseless forecasts and results; and
(x) Gutenberg dumps the Shares at inflated prices during the hype and the Participants receive the proceeds while remaining anonymous using the Blind Corp.’s account at Guttenberg.

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The British Columbia Securities Commission has already issued a temporary order and notice of hearing alleging that Bank Gutenberg AG breached securities laws by engaging in trading and advising in securities within B.C. without being registered largely in part because two banned brokers from British Columbia are directors for Bank Gutenberg AG.  Those individuals John Anastasious Collias and Norman Jeske.  

Bank Gutenberg AG which isn't actually a bank at all but rather just a night trading desk used to help manipulate the market for and sell shares illegally for insiders of these paid penny stock promoted tickers.  Bank Gutenberg AG which has been used by some of the bigger name promoters like Awesome Penny Stocks and Francisco Abellan took over as the primary firm of this nature after Gibraltar Global Securities Inc was shut down in 2012.  More information here.

Hans Wild the nominee officer from Zurich, Switzerland, also shows up being used as a nominee officer for the new controlling entity of Remmington Enterprises Inc (RMMG) as of January 14, 2014.  RMMG is still a fresh ticker that has not yet done its forward split.  I expect that RMMG will do a future forward split and eventually become a future paid promotion.

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More Promissory Notes

On December 10, 2013, LONR issued yet another Promissory Note this time totaling $4,000,000 to another undisclosed anonymous individual.

That means that LONR now has $8,100,000 in suspicious debt Notes on its books.

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Name/Symbol Change #2

Starting February 5, 2014, out of the blue, Lonview Real Estate Inc (LONR) will become Cannabis-Rx Inc (CANA) no doubt to take full advantage of the extremely popular cannabis market.

So far no filings have been done for the name/symbol change so there has been no disclosure about the change of business operations.  I believe that the change was done just to draw more attention to the ticker for future paid promotion/pump&dump activity.

I was able to find a description listed at a logo design contest linked to CANA that was posted 4 days ago.  Some of the current entries can be found here.  The description reads as follows:

Cannabis-Rx Inc provides services to the regulated cannabis industry throughout the United States. We lease growing space and related facilities (commercial real estate and equipment) to licensed marijuana business operators for their production needs. We are pursuing ancillary business products and services including customized plant nutrient lines, regulatory compliance consulting and advanced logistical support for grow operations.

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With CANA owning 8 properties under its previous name, that sort of goes right in line with that business description.  The problem is that most of those properties are in Florida and Illinois which are not the most marijuana friendly states.

The domain cannabis-rx.co is reserved for future use by CANA.

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Conclusion

We know that CANA has a set-up that suggests it will be used for a future paid promotion.  There are 29,700,000 free trading shares which go right in line with a good newsletter/hard mailer type of promotion.  We also have the other 124,300,000 shares now held in an account at notorious pump&dump center, Bank Gutenberg AG.   Throw in the $8,100,000 in suspicious anonymous debt Notes, and the fact that CANA is now the first true paid promotion ticker involved in the extremely popular pot industry and we could have a monster of a future paid promotion coming for CANA.  The links to WTER make Billionaire Stocks the obvious choice as the future promoter for CANA.

So far CANA has no trading history and last check it has a bid of $.20/share.  All things considered, $.20/share would be a steal on this one.  This one has the potential to be trading well above $1.00/share if it gets a good paid promotion.  We'll have to keep a very very close eye on CANA for its first print and any new filings or press releases.  Today we are adding CANA to our list of tickers to watch for a future paid promotion.

 

 

 

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