The management of Searchlight Solutions, Ltd. (PINK:SLLN) stated they were very pleased to complete an agreement to bring Linux Labs International Inc. into the Searchlight family. For some reason, the press release fails to mention that Linux is, in a way, already in the “family”.
The PR in question was published on Apr. 28. Which seemed to lead to some volume accumulation. On the following day SLLN gained 44.44% and closed at $0.0195 on approximately 5.7 million shares traded.
In an attempt to attract more attention to SLLN, which had a long span of practically no trade, a third party paid $40 thousand for this promotion. It also focuses on the acquisition.[BANNER]
Now back to the already “in the family” issue. The annual report SLLN published on Apr. 20 reveals some details about the deal. For example, that Sparrow Marcioni, President of SLLN, also controlled Linux. In the report it’s also stated that upon execution of the agreement the company must deliver a deposit of 4 billion shares of its common stock to the “shareholder”of Linux.
Those shares were issued on Feb. 11. There is a reference to a “Note 9(e)”. Interestingly enough, such a note does not exist in the report.
Other numbers presented in the report are:
- $4 cash and $21,890 in total assets
- $529,106 in total liabilities
The disclaimer of the promotion doesn’t specify the name of the third party that paid for the promotion. Traders might want to keep in mind the 4 billion shares issued back in February, and use caution when making investment decisions.
