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  "docId": "019dd923-622c-750b-8b9a-a4dd997f734e",
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  "documentTitle": "ADOMANI (ADOM)",
  "authorId": "61_White_Diamond_Research",
  "authorName": "White Diamond Research",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
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  "pageNumber": 14,
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  "notes": "The slide uses a short-seller report and SEC filings to argue that the company's valuation is artificially inflated due to restricted insider selling.",
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      "kind": "callout",
      "text": "it will be a few more months before the stock gets crushed from what appears to be an inevitable tsunami of selling from insiders.",
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      "text": "market valuation: $500M",
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      "text": "Despite ADOMANI’s lack of sales, it has an incredibly high valuation. On a fully diluted basis, it has 89.5 million shares outstanding. At the current market price that works out to a market valuation of around $500M.",
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      "text": "Compare that valuation to the $28 million market value of GreenPower (GPVRF) who is a partner of ADOMANI and actually has an electric powered bus. Greenkraft (GKIT) who is ADOMANI’s partner in electric trucks has a market value of around $11M. And Blue bird Corp, which has actual school bus sales of over $900M per year but trades at a value of around $450M. So tiny ADOMANI with no sales, has a market value far above its partners, who, unlike ADOMANI, do have actual products, technology, and substantial sales. How does the company do this? A big factor is its strict lockup period.",
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      "kind": "paragraph",
      "text": "Based on what Mr. Menerey has said in this interview, it will be a few more months before the stock gets crushed from what appears to be an inevitable tsunami of selling from insiders. But Boustead Securities shares are not under the same lockup period length.",
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      "kind": "paragraph",
      "text": "From the latest 10-Q it says on page 22: \"On May 12, 2017, the Company issued a warrant to purchase 199,659 shares of Common Stock, subject to stock splits or other similar changes in our capital structure, to Boustead Securities, LLC for services rendered in connection with the closing of our IPO. The warrant has an exercise price of $6.00 per share, becomes exercisable on October 22, 2017, and expires on April 25, 2022.\"",
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      "kind": "paragraph",
      "text": "Short selling outfit The Street Sweeper published an excellent interview with ADOMANI’s CFO, Mr. Menerey. Mr. Menerey is reported to have said: \"Boustead Securities, rightly so, insisted on lockups for all the existing shareholders and the option holders and warrant holders, et cetera. There were a few people released from their lockups. But we still have, I believe it’s in excess of 95, 96 percent of the entire pre-IPO group of shareholders that are locked up for a minimum of six months and more likely for closer to a year.\"",
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      "kind": "quote",
      "text": "\"Boustead Securities, rightly so, insisted on lockups for all the existing shareholders and the option holders and warrant holders, et cetera. There were a few people released from their lockups. But we still have, I believe it's in excess of 95, 96 percent of the entire pre-IPO group of shareholders that are locked up for a minimum of six months and more likely for closer to a year.\" — Mr. Menerey, CFO",
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      "kind": "title",
      "text": "ADOMANI’s Strict Lockup Period",
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