Equity.Guru podcast: Eureka 93 (ERKA.C) provides answers on dissolved partnership and 15:1 share rollback

08/06/2019

Eureka 93 (ERKA.C) is trying to get back on track in the wake of a dissolved partnership with Canopy Growth (WEED.T), a 15:1 share rollback and an eight-month trading halt.

Shares lost 90% of their value when folks who had been forced to sit on the stock during the halt dumped their shares on the open market.

Equity.Guru’s own Chris Parry had written about the company and its troubles since the days of Livewell and at Eureka’s request, sat down with company CEO, David Rendimonti, to get a closer look at Eureka 93 as well as an explanation for the company’s activities during the halt. Prickly questions were asked and answered.

Listen in!

Related Posts

Latest Post

Comments 54

  1. Andrew Sephin says:

    Arrogant, self loathing and focused on avoiding the truth. He has not accepted any of the failures, most of which were caused simply due to incompetence of the company, not external market factors as one would be made to believe. There have been several successful Marijuana companies that started off at the same time as Lvwl/Percy capital and have gone on to create a lot of value for their investors. This company has for the most part, tried to do backdoor “arms length” deals with their friends and that is why they are where they are. Not because they executed perfectly and market factors came together to drag them down (as Rendimonti would want us to believe).

    Accept your faults and be true to your investors atleast from here on. You haven’t even provided details on what the latest round of $15M financing is for. It is not even for the Las Cruzes facility, so what are you spending it on? When are you going to do the financing for the Las Cruzes facility and how much further is that going to drag the price of the share down? Even if you broke ground today, even with your own projections, you will have no revenue coming from the Las Cruzes facility in Q1 of 2020, so why do you continue to put out lies that it will be generating millions in revenue in Q1 of 2020? Rendimonti should quit, and let someone capable lead.

  2. bardi says:

    He says he’s all about Integrity? Really? Ask him what he and his friend Leaker were doing when they formed Relief Effects Inc.

  3. Andrew says:

    This guy knows nothing about integrity. He knows how to spin stories. That is one thing he knows. He addressed none of the real questions. Spin spin spin. Laser focused on making his friends rich at the expense of the investors. Scammers Kent Hogan and Owen Kenney got their way only because of incompetent people like Rendimonti. Now watch as he brings his other friends as saviours for another takeover at this price.

  4. Jas says:

    Chris, are you able to clarify what Rendimonti is saying about a potential for a buyout at this price? Is he saying that is fantastic?

    • Chris Parry says:

      No, I took away that he doesn’t see it happening, at least until they show what they have a little more, at which time they hope to be worth much more.

  5. bardi says:

    Chris, you generally do a terrific job but you went relatively soft on the architect of this debacle…still lots of unanswered questions….

    • Chris Parry says:

      Fair comment, if that’s how you feel. I’m happy to field those questions and seek answers for you.

      • Fred says:

        Hi Chris,
        Did they close the private placement? Why does everything have to be asked through a public forum with these jerks? The stock price is at a new low and not a word from management about how they plan to go about undoing the mess they created with the scam. Next time, we hope you can really call out Rendimonti’s b.s as he has been fooling the investors for way too long. Hopefully, he has the sense to quit and let someone more capable lead. The longer he stays at the helm, the higher the chance of him going to jail for this scam along with some of his friends.

      • Fred says:

        Hi Chris,
        Will you be able to reach out to Rendimonti and ask him why he is still around? Not like he is doing anything for this company. Maybe let a 2 year old run the company and it will do even better. Or is it just a matter of time before he jumps ship like the two that did on friday? With these two gone, Rendimonti and the gang are taking a stronger position within the company. As investors, we would like to know why these two really left? If the stock price is being manipulated as they claim it is, then why have they not investigated and fixed it or reported it? It does not look like these crooks care the least about the investors or this company by the way things are headed.

      • bardi says:

        Hi Chris, let’s start with : Why were 6 directors announced exactly one month ago and now 3 of them have left ; one for “health reasons” (possible I suppose but especially after he saw what was happening at this shit show) and two for the usual “personal reasons” BS….the stench is getting more intense…
        Rather than go through a whole list of questions I have though, let me boil it down to one fundamental issue : this whole value proposition rests on their proprietary technology licensed from Relief Effects Inc ( founded by Rendimonti and Leaker ). Is this tech actually patented (or at least pending?); what is so special about this technology? can it be copied or easily stolen? what are they doing to protect it? and lastly, how did Rendimonti/Leaker acquire this technology ? I get the insider deal they set up with themselves (as you well know, stuff like this happens all the time)……….but if this is all phony, they really don’t have a hell of a lot and even if it is real, they certainly don’t seem capable of executing – the fact that the management team that got them into this mess is still in place is absurd……which says a lot about the corporate governance that’s (not) in place….which brings me back to my opening statement….
        Thanks Chris, and keep fighting the good fight…..I don’t want to swell your head up up but you’re a great talisman for those of us out here amongst the great unwashed.

        • Benji says:

          Also, what is Rendimonti’s plan if this gets delisted from CSE soon? All that hype by this management about being part of Nasdaq by now.

        • bardi says:

          Two high-profile directors have resigned from the board of Eureka 93 Inc., a CBD-focused company formed when LiveWell Canada Inc. and Vitality CBD Natural Health Products Inc. merged in the late spring, as the company faces lawsuits, problems with licensing and questions about whether the business can continue as a going concern. (The Globe and Mail)

      • Fred says:

        Due for another call with Rendimonti to ask when he is quitting Chris? Seems like the big fish are the ones that are still around. Owen Kenney, Kent Hoggan and Rendimonti. Now they are bringing in Arisanna folks to do what? Another RTO at 100 to 1? These guys are hell bent on being the shady bunch forever. Jail time should teach them something.

        • Fred says:

          You may want to get on a call with Rendimonti soon as there is a rumor that he is out soon. Good riddance, but sad that he doesnt get to face the law.

          • Bob says:

            To be honest I loved the name livewell I loved it when we where on the Venture . It was nice when we referred to our growing as canopy ‘s. I know for a fact some people lost their livelihood with this investment. I’m hyperconfuse on what number’s the where looking at for the merger vitality & livewell. How come other compagny where able to get their license and we failed. We had some promising talk with the gov of Quebec and fair to say that failed. It was presentation to presentation on how much this market was valued at million’s, billion then trillion’s. We had all these board members with all these amazing titles and now we have Rex powers no clue who this guy is (maybe the stock whisperer) . The number of extraction changed month to month. We where held to believe we be producing 2000kg of cbd per month April 2019. Can somebody trully confirm real number not bunch of presentation with cute pictures and colors. Where is the Brazil deal no where. My family and I truly believed in this company but I guess I should put our money in fire pit atleast i would enjoyed the colour that would Of created. Oh sorry I forget the 15:1 consolidation and the whole nasdaq bullshit. But yet where in the CSE at .48 cent per share less then last year. I can’t even buy a pop at the Dollar store . So is David leaving or is feeling so bad he will send us a check in the mail cause he dosent feel honest .Plus the 15 million the wanted to raised that went to shit.

          • Fred says:

            Chris, were you part of this scam too? Or is this all news to you?

          • Chris Parry says:

            You know man, I’ve provided a public forum for you to say your piece, and for the company to say theirs, and time will prove out who is right or wrong.
            But if you want to get personal about it, find another venue.

          • Bon says:

            Hey Chris what you think about the halt

          • Chris Parry says:

            It’s a mystery. My gut reaction is, they’re trying to get some ground under them so they can work their way up. But there’s also probably folks coming at them looking for a fire sale of assets.
            Dunno.

          • Bon says:

            Thanks Chris for your response so pretty much livewell investor are screwed again

          • Chris Parry says:

            Well i don’t think it’s going to get back to the highs in a hurry but you may end up as part of something else.

          • Fred says:

            Hi Chris,
            Will you be doing an investigative piece on this scam, similar to what you did with WAYL? There are several people in this company that should go to jail, compared to just a couple of big ones at WAYL. They seem to be getting ready for another round of cleanse and repeat having brought in people from Arisanna. Starting with Tim McCunn, i hope you can delve into the dealings of the Vitality majority owners, the present CEO, CFO, President etc.. and expose the “arms length dealings” and movement of funds that has brought this company to where it is today and left several of us broke for life and shocked beyond belief.

  6. Jake Johnson says:

    Chris,
    The conspiracy here with Sean Peter and Dave goes much deeper. This will involve a class action and jail time for these guys. LVWL was a sham from the get go with a millions of stupid ideas met a incompetent leader that created an realistic vision and no game plan for a future.

    Chris : Ask about the
    $100m in payouts to the former directors? (Sean and Peter)

    Ask why Canopy JV really fell through? Getting an ACMPR is useless now, what’s the plan for the farm that was the selling point to investors for LVWL?

    • Bon says:

      So these guys got paid that much sorry who is Peter and Sean my bad been gullible

      • Jake Johnson says:

        Peter and Sean were co founders. They created a bulshit company (on paper) and attained lots of capital with a million scattered ideas and convincing powerpoint presentation and a company that had zero value and no vision. Nothing tangible, the canopy jv fell apart and then sold out to the E93 fiasco……yes look at the e93 financial statements…..they were paid out over 97million and walked away with alot more in shares and bonus. They put dave in charge who was a soap salesman…..who became the president because he was in on the original livewell evaluation scam.

        So many lost their shirts and convinced the shareholders to sell out 15:1 to E93 only to lose90% of their investment with a bullshit vision and no leadership.

        Sean and peter are con artists.
        Class action is coming.

        • Jason says:

          Tks I guess how can we get on the class action suit

        • bambam says:

          Rendimonti and Leaker formed a company (Relief Effects) while they were working at another cannabis company ; they then made Sean and Peter (and Bill) shareholders of Relief. And then these crooks licensed the technology of mysterious origin (connect the dots) to Livewell/Eureka……karma is a great thing – too bad about the collateral damage these scoundrels caused on the unsuspecting shareholders who bought into their bullshit.

        • Fred says:

          Jake, can you please provide more details about the class action? I am very much interested in being part of it, but I have not seen anything firm from any firm yet. If you do know, can you please provide that info? I really want to see these crooks go to jail and I hope we can atleast recover a tiny fraction of what we put in. If there is nothing firm yet, we should start engaging some reputable firm, besides that of the master schemer Tim McCunn from Ottawa. Any suggestions?

          • Jake Johnson says:

            Tim is the biggest scammer in the game. How he keeps his licence is beyond me. When I have more details I get a link to everyone I know of

          • Fred says:

            Please do provide. We need to do something before these crooks get the assets transferred through Arisanna to their pockets, which seems to be the next step in this scam.

          • Bon says:

            If you provide the info on the forum would be fantastic these fucker need to go down

          • Bon says:

            Hey Chris has anybody from eureka93 got back to you and in your expertise have you seen this before restructuring happen and then be semi successful lol

            Thanks in advance

          • bambam says:

            Chris, what’s your view on the fact that this massive destruction of shareholder value has not been accompanied by any accountability from those responsible : Rendimonti, Leaker, Aboud, Poli, McCunn ?? If what I’ve read above about the insiders lining their pockets is even remotely true, then this thing is ripe for further investigation.

          • Chris Parry says:

            When they’re in strategic review, they’re not going to talk about anything. Right now they’re looking for buyers. I think it’s safe to say they didn’t expect this end result, even a few weeks ago.

          • Chang says:

            They expected to be able to do a clean transfer of all assets into the hands of a few via the scam company Vitality but got screwed themselves because the market saw the b.s clearly. These guys should all go to jail. There is zero value to the inventory that they valued at 400 million dollars. The debt that has now been inherited is all owed to shell companies owned potentially by insiders. Does anyone here have the means to expose the owners of the company that was supposed to have lent Vitality 300k in return for $28 million one year later?

          • Fred says:

            Hi Chris,
            Given how this whole scam would expose many if they started communicating with the investors more frequently, it is obvious that they would only chose to communicate as and when they want. Are you able to do any investigative journalism to keep the investors more informed during a very anxious and stressful time for many investors? I know you had high regards for Rendimonti even a month ago. Do you still feel the same way about him and his role in this scam? Do you foresee the CEO & CFO being forced to quit now? Is anyone here considering bringing criminal charges against the insiders to force them to give up the ownership stake that they acquired fraudulently? I for one would like to see that happen and be part of it. If that doesnt happen, all that will happen is a continued “majority voting” of the successive scams that given these crooks total control of all assets.

          • elaine says:

            I am in that boat … Unfortunatly i speak french and I miss a lot of important informations… can somebody translate the big lines ?

  7. Bob Mapusa says:

    Where can I get a list of all the trades that happened since the stocked re-listed in July? While a lot of Shareholder value evaporated when the stock was halted after the acquisition, the stock went down almost 90% since trading opened. Anyone who knew that it was a scam would have pulled their money out.

    • Jake Johnson says:

      You couldn’t pull anything out during this period. Scam from the get go. This was their plan (assets and debt etc) …..now no money and not trading again. Alot of money pulled out and paid by the bord. Look at the last Q financial release

  8. Jake Johnson says:

    Chris, update?
    Rendemonti not returning your calls now?

    • Fred says:

      No one at Eureka 93 is returning anyone’s call. They should bring back Shaunn Poli and some new blood that wants to get things done and doesnt work by the conniving, scamming ways of Tim McCunn, Rendimonti, Kent Hoggan & Owen Kenney. The RTO should be rolled back. Chris, would you know if legally/procedurally is there any chance that the RTO can be rolled back to give the Lvwl assets and all the money that Lvwl investors shelled out to Vitality to keep it afloat, back to the Livewell shareholders?

      • Ban says:

        Now where suspended! I’m confused Chris. Are we still in the same boat? Has David return any of you calls?

        • Chris Parry says:

          They’re liquidating. Hopefully they get good interest.

          • Ban says:

            Artiva has received their license today. Can that be a game changer Chris.

          • Bambam says:

            Ever notice that Rendimonti and Leaker never seem to acknowledge that they both worked for the same company immediately prior to signing on with Livewell?….and that particular company happens to have developed proprietary extraction/isolation tech….hmmmm

          • Ban says:

            Their both super lovable

          • Fred says:

            Your take on the changes Chris? Is Rendimonti simply a scapegoat or was he responsible for his own ousting? With Vitality people controlling the board now, what does this mean for Livewell investments?

          • Fred says:

            Looks like they may land on their feet after all. Now that Rendimonti and the bunch are gone, there doesnt seem to be an auction going on (Rendimonti and the bunch had even brought in an auctioneer to the board to dispose of everything just before they “resigned”). They were filling the board with people that were ready to take the company into the assets of the company into the hands of a few. I think that is no longer the case. Good riddance with Rendimonti and co. Let’s see how this pans out from here on. The Artiva license along with the changes at Montana are all quite positive. No one should be ready to give these guys any new money, until they show their commitment to turning this around, using their own money if they have to (for the lofty valuation and stocks they received for nothing to date).

      • Jake Johnson says:

        Are you for real? Sean (and peter and tim) were part of the orchestration of this scam rto and brought rendemonti on board. Sean was paid out millions for doing nothing other than convincing investors into livewell and then E93 shareholder rto. He laughing at lall of us

        • Ban says:

          Then what’s the plan

          • Ban says:

            Hey Chris will be their be an interview with Sean Poli in the near future

          • Proton says:

            And if there is, ask him how it is that he is still partnered with Rendimonti/Leaker as a co-owner (along with Peter Ayoub) of Relief Effects Inc, which is licensing its technology to Eureka…but the real question should be: What is the origin of this technology? Rendimonti and Leaker were both working for another cannabis technology company when the two of them formed Relief Effects Inc (neither had any prior experience in the cannabis industry); they later added Poli and Ayoub as co-partners in Relief Effects – rats, scammers and incompetent buffoons all, for their duplicitous acts and the massive destruction of shareholder value under their watch .

  9. Jake Johnson says:

    This company is fucked. No money. No investor confidence. Sham ! Peter and Tim belong in jail.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: