All posts by Jim Dvorak

Managing Director of SOEC since 2005. Veteran of the Southern California automotive scene. Involvement with Saleen dates back to the mid 1990s.

INVEST $1M IN SALEEN AND GET A MUSTANG IN YOUR DRIVEWAY

BY: RICHARD MORGAN on November 9, 2015 at 11:53 pm
Original Article: NEW YORK POST

Not every debt-for-equity deal puts a souped-up Mustang in its investors’ driveways, but then not every company has Steve Saleen’s product line.

Saleen, the founder of Saleen Automotive, recently negotiated a capital infusion of up to $10 million that will deliver a Black Label Mustang or its equivalent for each $1 million in new debt or preferred stock.

“I know it’s not your typical return on an investment,” Saleen said of the Mustangs, Camaros, Challengers and Teslas he customizes into turbo-charged vehicles at his Corona, Calif., factory.

Since the starting price for each Saleen car is about $75,000, the company’s new creditor, SM Funding, is already fast out of the gate.

But the returns stand to accelerate, given the deal also includes up to $2 million in senior notes that pay 12 percent, and up to $8 million in preferred stock that will ultimately give the lending group 61 percent of publicly traded Saleen.

Cyrano Group’s David Bergstein, who’s credited with negotiating terms for SM Funding, also exacted a two-year, $25,000-a-month consulting fee for his advisory firm. At the closing, meanwhile, Saleen Automotive must take out a $15 million “key man” insurance policy on its founder, who was a professional race-car driver before going into the car-customization business in 1984.

Saleen’s stock hasn’t traded above a penny since May. And though it rose 1.5 percent in over-the-counter trading Monday, it still didn’t qualify as, literally, a penny stock.

Saleen, who’s been chasing capital since going public via a reverse merger in 2013, said the terms were fine.

“This delivers just enough so we can focus on executing,” he told The Post.

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[Source: New York Post]

AUCTION: SALEEN S7, S7R & S5S RAPTOR

Saleen S7, S7R & S5S Raptor

Timed Online Auction
Date: Bidding Closes November 18, 2015
Time: 10:00am PST

Location: Sun Valley, CA
Inspection: November 16 & 17 – 10:00am – 4:00pm each day

NOTE:

This sale offering is for the Assets and Intellectual Property of the Saleen S7, S7R and S5S Raptor and are being sold by the current owner and is not related to or affiliated with Saleen Automotive Inc.

The Saleen Name and Trademark are owned by Saleen Automotive Inc.

Saleen Automotive Inc does not have any ownership in the Saleen S7, S7R and S5S Raptor Assets and IP and are no way connected to this offering.

Description
GA Global Partners is offering for sale the Assets and Intellectual Property of the Saleen S7, S7R and S5S Raptor at online auction. The sale will include all remaining inventory, parts, memorabilia, molds, designs and intellectual property related to the Saleen S7, S7R and the Saleen S5S Raptor.

Included in this unique offering are six remaining chassis/frames for the Saleen S7 and S7R, and the one-of-a-kind concept car for the never-produced Saleen S5S Raptor.

These prized assets have been kept in safe storage for the past five years which makes this a truly rare and historic opportunity to own all assets and rights to the first ‘Great American Supercar,’ and allow a new owner to continue the legacy with the S5S Raptor

The street-legal Saleen S7 was introduced in 2000 and was followed by the S7R racing version in 2001. The S7R won nearly 30 poles and set 27 fastest laps at several tracks, including the 24 Hours of Le Mans. The Saleen S5S was unveiled at the New York International Auto Show in 2008 but was never produced.

The Saleen S7 has been featured in numerous blockbuster movies like Bruce Almighty, Need for Speed and Iron Man and has been covered extensively by the media and automotive magazines. The Saleen S7 and S5S Raptor have also been featured in top-selling video games, including, Asphalt, Forza, Midnight Club, and Gran Tourismo.

Click Here for Complete Terms and Conditions of Sale

Terms of Sale are summarized below. Please review and bid accordingly.
• A 18% Buyer’s Premium will be added to your bids
• Accepted forms of payment: CASHIER’S CHECK OR WIRE TRANSFER ONLY. NO CREDIT CARDS, NO PERSONAL CHECKS.
• All invoices must be PAID IN FULL by close of business the day following auction completion.
• REMOVAL: Typically, three days following the close of auction, please Email us with any questions or concerns specific to each event.
• All items are sold AS-IS, WHERE-IS. All sales are final – NO REFUNDS, RETURNS OR EXCHANGES
• Local sales tax will apply. To claim exemption, fax your valid, LOCAL and SIGNED resale certificate to 818-884-3561, or Email us. Reference your USER ID/BIDDER NUMBER on the fax.
• If you are claiming exemption, you may deduct sales tax from your payment, exemption documents must be provided when items are removed. Exemption claims will not be considered once payment has been made and items have been removed.
• Out-of-state shipments are exempt from tax if shipped directly from the auction site and a BILL OF LADING is provided.

Transportation & Logistics
• All buyers are responsible for the items purchased at the auction. Below is a list of companies that can assist you with shipping those items. Please contact them directly for scheduling and pricing.
• It is your responsibility and the responsibility of your shipping agent to coordinate removal procedures and schedules with the company selling the assets (equipment) prior to removing the equipment.
• All the equipment must be paid for in full before a release will be given for the removal of the equipment.
• If there are any questions or errors regarding the equipment, you must contact the auctioneer prior to removing the equipment. Once the equipment is removed, you assume all responsibilities.

These shipping company names are provided for your convenience, you are not required to use these companies.

Pack and Ship Companies
• Adcom Worldwide Services – Tel: 800.370.7700
• Craters and Freighters – Tel: 800.736.3335
• Freight Logistics – Tel: 720.377.9460
• Moveit Specialized Logistics – Chad McDermott • Tel: 800.831.0030 x17
• Navis Pack & Ship – Tel: 800.344.3528 for locations
• Pioneer Transfer – Tel: 402.564.390

Rigger & Transportation
• Advanced Riggers & Millwrights Off: 951-361-9187 (ask for Frankie)

Click here to participate in the discussion.

[Source: Great American Global Partners, Inc.]

MALIBLUE METALLIC S302 BLACK LABEL DEBUTS AT SEMA 2015

PHOTOS & TEXT: MIKE BERG

After the show they are swapping out the rims with carbon fiber and the chevrons for black.

Click here to participate in the discussion.

[Source: Mike Berg]

PARNELLI JONES INTERVIEW WITH A.J. GORDON ON CARSTORIES

The Jones’ Always Beat the Odds Podcast

Oct 20, 2015
Podcast Interview By A.J. GORDON
Article Written By YOAV GILAD

Growing up Mr. Parnelli Jones was into horses but when he turned 16 he sold his horse and bought a hotrod. After that, he was unstoppable. It was a 1923 Ford T-bucket, the same kind of car that he’d seen Troy Ruttman racing at Carrell Speedway. He still remembers Ruttman started at the back and fighting his way to the front to win the race. Jones started racing his car about a year later at the same track. “It was a radical car—needed a lot of maintenance,” but the car and the link to Ruttman fascinated him and so Jones raced it.

Jones loved racing, it really captivated him, but he wasn’t a natural, he really had to learn. After wrecking his car week after week, he blew his engine and finally didn’t have the money to fix it. A guy told him he’d build an engine for Jones, if he’d just slow down and stop trying to win at the first corner. Over time something clicked because he began finishing a bit more, and finishing well. But there were still crashes.

After becoming more consistent, Jones began earning his way and being able to keep his car out of trouble and win some races he started climbing the ladder and was invited into different racing divisions. He raced at Gardena Stadium (Carrell) every Sunday and Jones thinks it was this exposure that led him into Modifieds (finished first in his first race), Midgets (finished second overall in his first season), Sprint cars, and Stock cars. “I’m the kind of guy who liked to see what’s on the other side of the hill.” If someone offered a ride in a different type of car, Jones was in. There was a period during which he was driving about 65 races per year.

And although the danger was always present, he was lucky enough to never spend a night in the hospital.

By the time he went to Indy, he was pretty well established. Jones guesses that he could’ve gone sooner, but he waited to ensure he’d have a strong car. Asked if he was intimidated, Jones replies that he realized that legends “Put their pants on one leg at a time,” just like he does. Perhaps it’s because Indy 500-winner Jim Rathman approached a then-rookie Jones in the pits to find out how he had passed him. Jones would win the famous race two years later.

Parnelli Jones Peterson Museum
Parnelli Jones Peterson Museum

He’s also known for racing, and winning, in major off-road competitions such as the Baja 500 and Mexican 1000. Why did he enter off-road competition? Jones was goaded into it by Bill Stroppe who said, “Well, you’re probably not man enough, anyway,” when Jones initially refused Stroppe’s offer. He was man enough.

Ironically, Jones didn’t encounter his greatest challenge until his sons began racing. PJ and Page, are Jones’s boys and both fell in love with mechanical things very quickly. They could both ride a motorcycle by age four. But Jones didn’t want them to race. They kept asking though, and eventually he relented. In their first kart race, PJ won and Page crashed, but both loved it and wanted to keep racing.

Paige Jones Midget
Paige Jones Midget

Over time, it became clear that Page was a phenom, winning 18 of 42 races in stock cars or open wheels, in one season. In one race, the following season he understeered badly into the wall, flipped and was struck in the roof by a pursuing racecar. The collision didn’t look too bad on TV, but Parnelli received a call from the hospital in Ohio and the doctor told him to come out. It was a very serious crash.

Page suffered traumatic brain and spinal injuries. A nurse guaranteed that he wouldn’t walk out of the hospital. She was right, but he survived and went into rehab.

Over the last twenty years, Page has learned to walk, talk, and live normally again. It has been a fight to survive and re-learn all that we take for granted. “We just pushed and pushed… Judy and I never accepted that this was where he was going to stop,” Parnelli recounts. All the Jones’ refused to give up or accept his condition as an unchangeable constant.

And somehow, it’s as though they knew Page would regain his faculties from the beginning. “We had a great friend in Rich Sloan,” who has filmed Page’s entire recovery. He showed it to some folks in the movie industry who wanted to produce it. And so they did. It’s called Godspeed: The Story of Page Jones.

But it isn’t a documentary about racing or cars. If you watch it for wheel-to-wheel action or high-speed Indianapolis highlights you’ll be sorely disappointed. It’s about a man and a family beating the odds, and their strength, determination, and will.

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Click on this link to visit carstories.com and listen to the PodCast

Click here to participate in the discussion.

[Source: Carstories.com]