15 Feb Solar America Corporation (SOLX) – research report – now Horizon Energy Corp (HORI)
Solar America Corporation (SOLX) is an infant ticker that only just recently started traded for the first time ever. Since February 5, 2012, the ticker has started seeing much more regular volume. One of our members spotted some recent internet ads and was wondering if the ads were just the beginning of more market awareness yet to come.
At first glance, is it easy to see that SOLX is missing many of the basic steps that most paid promotion tickers usually follow including 1) a change of control 2) a name/symbol change 3) a forward split
Tickers that lack those basic steps, but are still set up with a goal of insider enrichment often become slow climbing stocks.
At this point, we are not sure what SOLX may be without first taking a closer look.
Solar America Corporation was originally incorporated in the state of Wyoming with the name Glacier Point Corp on August 12, 2010.
On December 6, 2010, the name of the entity was changed to Solar America Corporation in preparation for a purchase agreement signed with Solar N Stuff Inc, a Louisiana business entity controlled by Brian Barrilleaux that was incorporated on October 6, 2008. See the website here.
On December 14, 2010, Solar America Corporation acquired Solar N Stuff Inc for $100,000 making Solar N Stuff Inc a wholly owned subsidiary of Solar America Corporation.
Solar N Stuff Inc brought with it a modest inventory of products and over $550,000 in revenues over its 2 1/2 year history of existence.
Along with the assets and revenues, Solar N Stuff brought a paid consultant named Michael Hopman and a director and secretary named Kellie Moss.
Kellie Moss is the daughter of Eddie Austin and Carolyn Austin who surprise, surprise were also involved in the Solar industry running a company called Sunrise Solar Corporation (SSLR). SSLR got suspended by the SEC on June 5, 2009. On October 1, 2012, Eddie Austin and Carolyn Austin showed up in SEC litigation for their role in the SSLR stock manipulation scheme. See the full Complaint here.
"On September 28, 2012, the Securities and Exchange Commission charged Texas-based Sunrise Solar Corporation, its former CEO Eddie D. Austin, Jr. (Austin), and his wife Carolyn Austin for their involvement in a fraudulent market manipulation scheme.
The SEC’s Complaint alleges that between July 25, 2008 and May 26, 2009, Austin drafted, reviewed, and approved numerous false and misleading press releases that portrayed Sunrise as a thriving business operating in the solar power industry. Among other things, these press releases represented that the company had received contracts and was in advanced negotiations to provide solar power to numerous international businesses that, if completed, would generate millions in revenue. The Complaint alleges that these representations were false."
Solar America Corporation didn't have the $100,000 to complete the acquisition so they borrowed $200,000 from Infinite Funding Inc which is now listed in the SOLX filings as a debt Note. It would be the first of many more loans that Solar America Corporation would issue to Infinite Funding Inc.
Infinite Funding Inc is a Texas based entity allegedly with offices also in Portugal and Switzerland linked to Alina Yurovskaya and Andrew Farmer.
Infinite Funding Inc also lent money to DoMark International (DOMK) in September of 2011.
DOMK saw some interesting pump&dump action led mostly by internet ads starting around May of 2012.
DOMK was involved in providing knockoff solar pads during the peak of their pump&dump. Close associate and DOMK insider, Scott Sieck was no doubt a key link to DOMK getting involved in the Solar industry. Scott Sieck, who reportedly shared the same business address as Andrew Farmer, was a former business partner of SEC recidivist, Darrel Uselton who went to prison for his past security violations. Scott Sieck can also be linked to Evolution Solar Corp (EVSO) which got suspended by the SEC on June 7, 2011 as part of their attack against MicroCap fraud. Another Solar company penny stock linked to Scott Sieck is Sunrise Solar Corp (SSLR). SSLR was run by the parents of the SOLX secretary and director, Kellie Moss. SSLR got suspended by the SEC on June 5, 2009 as was already mentioned earlier in this post.
Andrew Farmer who owns the Texas address used by Infinite Funding Inc can be linked to several other penny stocks.
Farmer was the director of Emerging Healthcare Solutions Inc (EHSI) which became one of 17 tickers suspended by the SEC on June 7, 2011 in an effort to fight against Microcap Fraud. The CEO of EHSI was Kathleen Delaney who is also from Texas and can be linked to several dirty penny stocks (along with her sister Cindy Morrissey). Delaney is another long time associate of SEC recidivist Darrel Uselton - read more here.
The San Felipe Address used by EHSI is the business address used by SGPC, a company that did a reverse merger with Onyx Service & Solutions Inc (ONYX). SGPC/ONYX also did a Promissory Note with Infinite Funding Inc. ONYX was suspended by the SEC on January 27, 2012 for lying in its press releases.
ONYX had the same corporate address as yet another SEC suspended company, Go Solar USA Inc (GSLO). GLSO was suspended by the SEC on the same day as EHSI and EVSO, June 7, 2011, as part of the sweep against MicroCap Fraud. GLSO was a company run by Maurice Stone, Tyson Rohde, and Kathleen Delaney.
Andrew Farmer was also involved briefly with James Kesaris, Maurice Stone, Eddie Austin Jr., Richard Bono and others with Lilly Beter's company, Peninsula Holdings (PHGTA, PHGTB, PHGTC) before things fell apart and a lawsuit was filed against Stone and Austin for allegedly mishandling Ms. Beter's estate affairs.
Basically what all this means is that SOLX can be linked to several past Solar Stock scams and several past Stock Manipulators.
Solar America Corporation filed an S-1 to go public on June 27, 2011.
The attorney helping with the filing was Lucosky Brookman LLP.
Brian Barrilleaux owned all 10,000,000 shares when the Solar America Corporation filed to go public which he received as founder's shares.
The S-1 filing was approved by the SEC on March 29, 2012.
Since Going Public
After going public, SOLX sold 6,000,000 shares to a group of seed shareholders for $.02/share raising $120,000.
During the first 9 months of 2012, SOLX earned another $127,315 in sales, but that was not enough to cover operating costs so SOLX has continue to borrow money from Infinite Funding Inc (Andrew Farmer).
All total as of the last disclosure from November 15, 2012, SOLX has borrowed $760,000 from Infinite Funding Inc.
The Solar America Corp website can be found here.
Current Share Count
Authorized - 200,000,000 shares
Outstanding - 16,000,000 shares
Float - 6,000,000 shares
Brian Barrilleaux - 10,000,000 shares (restricted)
Seed Shareholders - 6,000,000 shares (free trading) - purchased at $.02/share
Solar America Corporation (SOLX) follows in the foot steps of a long line of Solar stock scams.
The director/secretary of the SOLX shell (Kellie Moss) is the daughter of Eddie Austin and Carolyn Austin who ran a Solar stock scam on the SSLR shell.
The main debt Note holder in the SOLX (Andrew Farmer) can be linked to DOMK which was part of a very successful internet campaign type of stock promotion in the spring/summer of 2012.
SOLX also links to 5 penny stocks that all got suspended by the SEC (SSLR, EVSO, EHSI, ONYX, and GSLO).
SOLX does have some Solar products and is making some revenues, but it seems obvious to me that SOLX is being set up as the next generation Solar scam by a group of insiders that have done this many times before.
I am unsure at this point whether SOLX will do a forward split. If they do it will probably be a small forward split (probably 2:1 or 4:1).
SOLX could very well see a promotional campaign very very similar to the one that we saw run on DOMK in the past. For this reason I am adding SOLX to our list of stocks to watch for a future paid promotion. The timing of any major promotion will probably center around when the Infinite Funding Inc debt Notes start getting converted into free trading shares.