10 Years >$1.00
Relevium Technologies (RLV) is in a bit of hot water as the company engaged with a very questionable media outlet who disseminates admittedly inaccurate information to pump its client’s share price. Less than a month before the dodgy promo went out from Relevium’s client SmallCapFirm, Relevium’s CEO Aurelio Useche bought a boat load of stock.
So who is this Useche character, and why does he warrant a closer look? This guy is the poster child for the cringe-worthy penny stock RTO RTO RTO’s, yes that’s triple RTO’s.
In this epic decade long bull run, Useche has remained a small time guy. While digging into Useche’s past we recognized that he not only loves RTO’s, he really loves penny stocks, and not $1-$5 “penny stocks”, but actual penny stocks. Relevium is currently trading at $0.08, which seems to be right in his wheelhouse.
Yeesh, what’s Abattis trading at these days?
Relevium ven sell in Walmart and on Amazon, but investors don’t want to bite. The company has had a hard time selling their story, a responsibility that falls on the CEO’s head.
Pressure to get the share price up could have been the reason the company chose these guys:
From SmallCapFirm’s disclaimer:
*** Remember: When any of my Campaigns End, the Stock of the Profiled Issuers Will Crash.
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No. The Information is a snapshot that provides only positive information about the Profiled Issuers. The Information consists of only positive content. We do not and will not publish any negative information about the Profiled Issuers; accordingly, investors should consider the Information to be one-sided and not balanced, complete, accurate, truthful or reliable.
But, Releviums dismal SP is nothing new for Useche, since 2009 Useche has been an insider for a few companies: Colt Resources, Lakeside Minerals, Lineage Grow, Lakeside Minerals, Maestro Capital Corp and Relevium Technologies.
Not a single one of his many insider transaction over the past 10 years includes a stock trading above $1.00, the highest was actually a whopping $0.73 cents.
In 10 years of running pubco’s, Useche has never been in a managerial role in a company that has traded north of $1.00. Also, all of the companies listed above that Useche has been a part of have either ceased trading or have RTO’d into another company.
More on that below.
First you RTO, then you RTO again…and again
Useche has been in the RTO game for a while now, so much so that one of his old companies was actually based on RTO’ing other companies.
The RTO (reverse takeover) is quite popular in the cannabis world. Generally these events have been pretty successful despite their hacky nature. In lay-mans terms, an RTO would happen when say a mining company that has been dead in the water for years gets taken over and turned into a cannabis company.
The fact that it used to be a mining company 3 years ago has nothing to do with current operations, and, the cleaner the shell, the quicker and easier the process is for turning a zinc deal into a cannabis deal.
This is exactly what Useche did as director of Lakeside Minerals Inc.
Lakeside Minerals then RTO’d into Lineage Growth in 2018, which didn’t do much better.
IPO in 90 days, no ops needed
Back in 2015 he ran a company called Maestro Capital, which boasted a 90 day IPO program where companies could go public through their RTO method known as a Capital Pool Company. According to Investopedia, a capital pool company is a listed company with experienced directors and capital, but no commercial operations at the time of the initial public offering (IPO).
Here is Useche’s old company explaining the process in a video from an archived version of Maestro Capital’s old website:
In 2016 Maestro Capital went on to make a sizeable investment in the newly formed Relevium Technologies. Relevium was not formed on the basis of an RTO, but rather it’s former company Bioflex was formed through a qualifying transaction (QT).
Is Useche a bad or crooked dude? Probably not, which is actually kind of rare in the cannabis sector. Rather, he seems incapable of generating investor interest around the companies he runs. The hacks Relevium hired admitted that the stocks they pump go back down right after the promo is over, so what do you really expect?
Has Useche made bank off of these deals? Probably, insiders usually do, but it doesn’t look like shareholders have done too well. I doubt Relevium shareholders are happy with the current SP.
They actually put out a press release about Equity Guru’s story on them last week. I hadn’t even heard of Relevium Technologies before the company started going at it with Chris on Twitter. The whole interaction gave me the douche chills, so I decided to go in and have a look.
Again, this company might be legit, it’s just that no one outside of a bought penny stock email list SmallCapFirm owns knows who they are, or what they are doing.
Colombia ops? Cool.
Walmart + Amazon? Cool.
These cannabis caps on Twitter look pretty low budget for a ‘technology’ company, but, maybe there’s some cool products in the making, no one really knows.
Just look at these high tech Relevium cannabis pills:
In this era of internet marketing there are a lot of sites and networks of sites putting out info which don’t have the best intentions. Why do we put out this kind of content you just read? Because only us, and a few other sites will. The rest will do bullshit pre-planned CEO interviews and surface level digging.
We provide the much needed flip side of the coin that isn’t always seen in the investing world, especially in small cap.