NAILED: Saint Jean Carbon (SJL.V) forced to admit no off-take deal signed, stock crashing

03/03/2017

Saint Jean Carbon (SJL.V) CEO Paul Ogilvie saw his stock halted Thursday by the Venture Exchange, as he was forced to clarify an earlier news release that appeared to suggest an ‘off-take’ deal to supply graphite to Panasonic had been signed.

The CEO had said, on February 28, in a news release titled ‘Saint Jean Carbon receives order from Panasonic‘:

“After more than two years of working on material specifications, sampling and re working, we could not be more pleased than to finally ship finished material to our customer. The order is part of an offtake agreement to supply multiple tonnes of anode material monthly for a number of years.  We are hopeful that the electric car business continues to grow at this rate; as that will continue to push our demand and create more and more opportunities for us. We consider today as our greatest accomplishment; to be recognized and awarded with an order to supply one of the world’s best technology companies, is a tremendous accomplishment for the team.”

The clarification? Just as we claimed two days ago, almost none of this was actually true.

The Company is pleased to clarify certain information in the press release dated February 28th, 2017 at the request, and pursuant to the guidance, of the TSX Venture Exchange.

Busted.

The Company has received a purchase order from Panasonic Corporation to supply graphite anode material to their manufacturing facility.  While the size and value of the order is nominal, both on its own and in comparison to the anticipated monthly orders under the provisions of the proposed formal off-take agreement, the order is significant as it marks the first order for material that has been re-engineered by the Company.

You catch that? Though the order is insignificant, it’s significant.

Although the off-take agreement has not been signed at this time, the supply of the re-engineered material pursuant to the order is based upon the procedures and timelines contained in the proposed off-take agreement.

Translated: Yes, we know we told you ‘The order is part of an off-take agreement to supply multiple tonnes of anode material monthly for a number of years‘, but actually there’s no agreement yet because for an agreement to have occurred, BOTH SIDES WOULD HAVE TO SIGN IT.

The first order is anticipated to be delivered within 90 days from February 24th the date of the purchase order.

Translated: Yeah, we know we said earlier ‘we could not be more pleased than to finally ship finished material to our customer‘, but we were talking in a future sense, not an actual ‘product has been shipped to the customer’ sense.

The raw material is being re-engineered by the Company prior to its delivery; however, the supply is being out sourced as the Company’s properties are not currently in production.

Yep, they’re not even using their own graphite, just like we alleged. It’s like they went to Bob’s Discount Graphite Yard in Etobicoke and filled the trunk, then put out a news release claiming they were SUPPLYING FUCKING PANASONIC.

The Company confirms that it has both the financial resources and access to the raw materials necessary to complete the first order.

The author confirms that he has enough cash in his chequing account, and the phone number of some Chinese graphite suppliers, to do the same.

Both companies are working to finalize the proposed off-take agreement as soon as possible.

I’d like to hear that from Panasonic itself, if that’s okay with you, Paul, because I dare say Panasonic won’t take your phone calls after this caper, even they’d mistakenly answered your call once previously.

The last line of the clarification is a beauty.

The Company has received numerous requests for information related to amount of material per month, per year, how many years, how much the material is going to sell for, etc.  At this time, that information is confidential. If at some point the Company receives authorization to release the information from the customer, the company will share the details.

In other words, YOU’LL NEVER SEE IT.

SJL.V stock, at the time of writing, has lost 37.2% of its value since trading resumed a few hours ago, and I imagine that’s going to grow as the trading day continues (UPDATE: Now 41%).

If it turns out insiders sold on the big jump two days ago, someone’s going to need to dig deeper because they sure as hell nailed the ‘pump’ side of ‘pump and dump.’

UPDATE: Congrats to company insider Dick van Wyck, who dumped 900,000 shares at $0.21 and $0.22 the day SJL quadrupled.

Always read the previous news releases. Look out below. And hey, IIROC, thanks for reading and pursuing.

— Chris Parry

 

 

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Comments 1

  1. Rog says:

    Congrats. You nailed it beautifully. I bought in twice but was always suspicious. The CEO of another graphite company emailed me the CEO is a bit dodgy and they have no primary supply of graphite. Your article tipped the balance and I got out at a profit.
    That f’ing lawyer needs to be strung up by his balls for his massive sale.

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