23 Oct Sollensys Corp (SOLS) – follow-up report
On October 5, 2012, Sollensys Corp finally got its symbol change to SOLS and we called it the last step before a future paid promotion.
Today, SOLS had its biggest volume day to date. The share price has been climbing one step at a time from $.15/share on October 15, 2012 (its first day of trading) to $.69/share at today's close.
Since our original report back in August only one major event has occurred for SOLS.
On September 30, 2012, Sollensys Corp signed a share acquisition agreement with Sollensys Corporation which is allegedly located in South Korea. SOLS agreed to acquire all of the outstanding shares of Sollensys Corporation - South Korea in exchange for 200,000,000 shares of Sollensys Corp (SOLS). The acquisition is scheduled to close on November 15, 2012.
At the current trading price of $.69/share, those 200,000,000 shares are now worth $138,000,000.
Is Sollensys Corporation - South Korea worth $138,000,000? Would a company worth $138,000,000 do a reverse merger into a dirty p&d penny stock shell? What do you think?
The attorney helping with the paper work is Rowland W. Day II who has been linked to several past pump&dumps including WBSI and MYOS.
Missing from the share exchange agreement are all of the exhibits so we are given absolutely no disclosure about Sollensys Corporation - South Korea or any proof that anybody from Sollensys Corporation - South Korea even signed the agreement. No names, no address, no signatures. Nothing. Very suspicious.
What we also do not know is if Sollensys Corporation - South Korea is a company that is even conducting any kind of significant business operations.
Here is the website for Sollensys Corporation - South Korea. You'll notice that Sollensys Corporation - South Korea makes absolutely no mention on their website (including in the press releases) about signing an agreement to sell the entire company to SOLS and become a publicly traded company on a US exchange. This would no doubt be the biggest news in the company's history, yet the company feels no need to inform its shareholders?
I personally do not think that Sollensys Corporation even knows that they have a signed agreement with SOLS. In other words, I think the agreement is just a fraudulent agreement. Sollensys Corporation - South Korea appears to be a multi-million dollar company that is plenty capable of paying to do an IPO and trade on a higher exchange if they really are interested in becoming a publicly traded company on a US exchange. Why chose a reverse merger route into a shell that is run by a pump&dump attorney with over 100,000,000 free trading shares waiting to be dumped into a paid promotion? I'm really thinking that there is nothing significant to the Sollensys Corporation - South Korea business operations as the website suggests.
So whether the share exchange agreements ends up really being completed or not - this is about much more than giving a ton of shares to a foreign entity.
It is about the SOLS insiders who have 100,005,386 free trading shares that were given to seed shareholders at a price of only $.00038/share. At the current trading price of $.69/share those 100,005,386 free trading shares are now worth $69,003,716. That is plenty of motivation to put together this share exchange agreement.
*39,507,000 of those free trading shares are owned by Harari Holdings Inc (anonymous foreign entity) worth $27,259,830 as of today's close
Harari Holdings Inc is a Gray&Co. Panamanian entity. Gray&Co is a nominee officer service often used by APS shells.
*39,507.000 of those free trading shares are owned by Russell Assets S.A. (anonymous foreign entity) worth $27,259,830 as of today's close
I couldn't find Russell Assets S.A., but S.A. usually suggests the entity is a Panamanian entity.
*20,991,386 of those free trading shares are owned by seed shareholders worth $14,484,056 as of today's close
*395,070,000 shares are owned by Middles East Ventures FZE (anonymous foreign entity) costing $25,000 now worth $272,598,300 as of today's close
*Total outstanding share count is 495,075,386.
That's a huge pay day for SOLS insiders.
That means unless the agreement is delayed (which is likely) the SOLS paid promotion could start before the November 15, 2012 closing date if the agreement is meant to fail so that insiders will have plenty of time to dump those 100,005,716 free trading shares before the announcement has to be made that the agreement has been terminated or the agreement is proven to be a fraud (I've already emailed Sollensys Corporation - South Korea to see if they will have any comments about the proposed share exchange agreement but got no response).
If the agreement does end up closing then the promotion will probably start right after the agreement is officially completed.
Bottom line is that whether the acquisition is real or not and whether the acquisition gets completed or not it will all be about selling shares for the SOLS insiders holding those 100,005,716 free trading shares.
We'll continue to watch SOLS for that paid promotion.