Level Vision Electronics (LVLV-PK) - A Distortion of Vision
After several attempts to reach executives of Level Vision Electronics to answer questions, we received no answers. Yesterday’s press release from the company announcing that they signed a financing agreement with Cunningham-Adams Small Cap Fund II for a total financing of $4.7 million USD placed this company on the red flag alert. That means: Buyer Beware.
So who is Level Vision Electronics:LEVEL Vision Electronics is an ODM / OEM (designer and manufacturer) of consumer electronics (mainly Wireless Handsets) that ingenuously targets the world’s emerging markets. The company was started in early 2005 and was incorporated soon after in Canada.
We would agree that they do INGENUOUSLY target the world’s emerging markets. We think you could say the same for investors.
Read more:
The financing is structured as a non-toxic convertible debenture with a seven year term at an annual interest rate of 9% and debenture is convertible into common shares of the company at 25% discount to market with a floor price of $0.53 and a ceiling price of $1.28.
This seems quite unbelievable considering the fact that the company has little evidence of revenue and little evidence of any cash in the bank. The debenture pays 9% annually convertible into common stock at a minimum of 17 times the current stock price. We would think Dell would take that deal.
So, who is Cunningham-Adams?
Here is what we could find.
Cunningham-Adams Small Cap Fund I, S.R.L. a Barbados based registered operating hedge fund, administered owned by Toyma Capital Inc., a Canadian based corporate finance advisory firm and holding company managed controlled Jean-Francois Amyot Jean-Paul Amyot, who holds 52.7% of our common stock and our Board of Directors
That name in bold ring a bell? Look behind the glass and you shall find.
Will the real Jean-Paul Amyot please stand up?
Are we dumb or do we just have sucker written across our foreheads? Does Mr. Amyot own any more stock besides this investment? If he doesn’t, then we would have to believe that he sold all of his stock and now suddenly had an epiphany that he would loan the company $4.7 million and agree that the debenture be convertible into stock at prices 17 times where we are now. (We’re actuall belly aching when we’re writing this- this is too funny). What’s his ownership interest in Cunningham-Adams Small Cap Fund II?
Orrrrrrr, Mr. Amyot is still a shareholder and since he was the CEO of the previous entity, probably owns a considerable amount of stock. Therefore, should this have been revealed? Is he a controlling shareholder?
We would love to get answers. Unfortunately, there seems to be no one home.
May 6th, 2009 at 5:53 pm
Thanks, I read something about this company.
July 10th, 2009 at 12:36 pm
What difference does it make? I don’t know Mr Amyot’s story but I know the company was looking for financing to fill real orders - not a pump and dump scenario. The Canadian government will back a large portion of the loan if it’s done right.