Vision Industries Corp (OTCMKTS:VIICQ) made a big move up in January to highs well over a penny on significant volume but has been in steep decline since drifting into oblivion.
The last press release from VIICQ was in November of last year when they said they have received an official request from a Canadian Energy Solutions Company to prototype 32 Tyrano(TM) trucks at a remote mining site in Northern Canada. The mining site has a massive wind turbine facility which can produce hydrogen through an electrolyzer. With the capability to produce on-site hydrogen, the mining company hopes to eliminate the need for shipping large quantities of diesel fuel (to the remote site) before onset of winter. During the winter season, the shipping lanes are usually frozen.
VIICQ is an exciting story that is quickly developing; they are the maker of the Tyrano; the nation’s first street-legal zero emission Class 8 hydrogen/electric hybrid truck filed for Chapter 11 bankruptcy protection on September 25. This was caused by the Company’s inability to obtain quorum at its August 22, 2014, Shareholder Meeting, at which the Company sought permission to increase its authorized share count from 500 million to 10 billion common shares.
Vision Industries Corp (OTCMKTS:VIICQ) products include: (1) the Tyrano, a hydrogen/electric hybrid Class 8 truck; and (2) the Zero Emission Terminal Tractor (“Zero TT”), a hydrogen/electric hybrid terminal tractor. The Tyrano is the nation’s first street-legal zero emission Class 8 hydrogen/electric hybrid truck designed for local and regional drayage. The Zero TT is a zero emission, hydrogen/electric hybrid terminal tractor designed to work a double shift before refueling.
VIIC heavy-duty Class 8 trucks are substantially less expensive to operate on a per mile basis than diesel and natural gas powered trucks. The cost savings on a per mile basis versus diesel and natural gas, is expect to be around 35% to 45%. Debtor’s hydrogen/elect ric drive system offers almost double the pulling-power of a conventional diesel truck.
Vision Industries target markets are the: Trucking fleet operators; Warehouse operators; Shipping operators; and Rail yard operators in the Ports of Los Angeles and Long Beach, the largest port of entry system in the United States (with $304 billion of freight moved by 30,000 trucks per annum).
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VIIC was awarded contracts by the Port of Long Beach to deliver a Tyrano and Zero TT for demonstration and drayage testing. The Company currently operates out of a 21,087 ft.² warehouse and office facility located at 2230 East Artesia Blvd., Long Beach, CA 90805.
Back in 2009 the excitement on Vision was palpable. Investors described the Company as ‘operating on the cutting edge of emission free pollution for both trucks and cars. The electric and hydrogen fuel cell technology is green green green. ‘ Then-Governor of California, Arnold Schwarzenegger touted the company’s zero-emission semi-tractor trailer outside the California State Capitol commenting at the time “This is very exciting, this truck that is behind me here,”
At the event to promote the Tyrano was VIIC CEO Martin Schuermann, a colorful guy that used to work as a film producer and distributor. He worked for the company that produced films like Basic Instinct 2, Terminator 3, RV, Alexander. He gained more fame when he was featured on Celebrity Wife Swap with his wife former MTV VJ Downtown Julie Brown.
Over the years Vision fell into trouble due to continued significant operating expenses and lack of any profits culminating in the bankruptcy filing back on September 21.
Conclusion: VIIC has experienced a hard fall in recent months as the Company was forced to file for bankruptcy protection back in September and saw their stock land way down in the subs. Even before the bankruptcy VIIC was trading as low as a penny, a far cry indeed from the prices over $1 the stock commanded several years ago with $100 million plus market valuation.
According to the last filing from VIIC the SC 13G from Oct 2, 2014 the Company currently has 355,345,942 shares outstanding. This puts VIICQ at a total market valuation of $1,066,037 at current price levels. Some might consider this absurdly undervalued.
We have all seen the incredible rise of many Q stocks after the bankruptcy, we can remember AAMRQ and the run it made from $0.40 to over $12 per shares or FnF which ran from pennies to over $6 per share.
Vision arguable represents an even more compelling situation here on the Qs found here. The filing states:
- Events Precipitating the Chapter 11 Case.
Debtor’s financial difficulties were primarily caused by a lack of operating capital. In the months leading up to the bankruptcy filing, Debtor’s principals sought permission from the largest debt and convertible note holders to increase Debtor’s authorized share count from 500 million to 10 billion common shares. The increase in authorized shares was requested by management to enable Debtor to seek further funding to continue operations. The request was not approved, which made it impossible for Debtor to raise capital to fund operations. Debtor anticipates that it will secure substantial post-petition DIP financing pursuant to ongoing negotiations with several potential investors. Once DIP financing is secured, Debtor will propose a plan of reorganization to restructure its debts and emerge from bankruptcy as a profitable entity.0
- Debtor’s Business Reorganization Effort
Debtor intends to secure post-petition DIP financing by the end of October 2014 to, at minimum, remain post-petition current on lease payments to its landlord, compensate court approved professionals associated with this Chapter 11 case, and obtain an order confirming Debtor’s Chapter 11 a plan of reorganization. It is anticipated that if a plan is confirmed, it will come as a result of a substantial loan or a capital infusion.[/b] Should Debtor be unable to obtain such financing, Debtor will consider selling its assets to pay creditors.
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Currently drifting into oblivion the chances that Vision emerges from Bankruptcy a profitable entity seem to be fading as the stock moves lower. The company’s truck the Tyrano is a green technology with cost savings on a per mile basis versus diesel and natural gas, expected to be around 35% to 45%. We will be updating on VIICQ on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with VIICQ.
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Disclosure: we hold no position in VIICQ either long or short and we have not been compensated for this article.