11 – Spokane Penny Stock Shuffle

Spokane Penny Stock Shuffle

This is just an outline and will be rewritten to add more details such as dates, names, and descriptions.

By May of 1987, it was obvious that an influx of cash would be necessary to remain open, and continue R&D as we were $72,000 in debt.  By now we had hired D. Keith Fischer, our electronics expert who deigned the SenSei Server.  We also had Lani Strege as an administrative assistant.  It was also apparent that Stan Colson and Bruce Jorgensen weren’t working out.  The two were dismissed by early June, and by June’s end Jorgenson sued us for compensation for the use of his suggestion of the word Sensei.

 

Keith Fisher Working At His Bench

Keith Fisher Inventing

Pat Monks From Apple In Seattle

Another News Article
On SenSei

 

With several letters form our attorneys explaining the Sensei was a word which could not be proprietary, and SenSei and the Handicapped S, logo had already been filed with the United States Trademark and Patent Office in Washington D.C., as a Federally registered trademark, and the fact that Jorgensen was in breach of contract to perform, the suit was quickly dropped.
Apple was helping out.  Pat Monks in Seattle…

 

We meet with a finance group in Spokane, Washington, who were supposedly, venture capital experts, Drew Brooks of BroCorp, and Gary Fields of Winchester Gold.  After several demonstrations, and many negotiations, and going form a 20% equity placement for $100,000 to a debt equity placement of 30% and a net placement of about $80,000 at 10% interest, we declined the opportunity in July.

 

We did however; learn some very important and painful lessons in the Spokane Penny Stock Shuffle.  When myself signed a letter of intent, the announcement sent the stock of the dormant company Datex, the company we were to merge into, form 1¢ per share to 48 cents.

 

When friends and family invested, to the tune of about $35,000, the stock sold and mysteriously dropped back to 1¢ and eventually to $0.00.  Someone did pretty well.  If there is any consolation, Cimarron Securities, who handled these transactions was shut down by the S.E.C. six months later, and Gary Fields along with Drew Brookes was eventually sued by the Board of Directors and stockholders of Datex for misappropriations of funds.

When the deal crashed and burned, it took my best two friends (explain).

 

Took time and put me deeper in debt.  Entrepreneur’s Blue Sky Syndrome.

 

Lon Safko

www.LonSafko.com

Bestselling Author & International Keynote Speaker

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