Soupman Inc (OTCMKTS:SOUPQ) is trading strong on possible takeover rumors. The demand for SOUPQ’s shares stems from a 51% stake from an investment firm, Wealthcolony. Shares have gone from a fraction of a penny to over $.03 a share in just a few days peaking at close to $.04. On top of that, more than 40 million shares changed hands some days.
On August 18, 2017, SOUPQ received a letter from WealthColony, wherein it was stated that the investment firm had acquired 51% of the company and was asking to remove the current directors. The moves by Wealthcolony are trying to stop inside investors from dumping the company cheaply. This battle is just beginning and could continue to push around the stock price.
Soupman Inc (OTCMKTS:SOUPQ) is a manufacturer and seller of soups to grocery chains, educational institutions and its franchisees. The Company manufactures and sells soups in three segments under the brand name, Original Soupman. In the grocery segment, the Company’s soups can be purchased in stores (such as Kroger, Publix, Safeway and HEB). The Company packages its soups in Tetra Recart shelf stable cartons. In the food services segment, the Company sells the Original Soupman soups in bulk frozen heat ‘n serve pouches to its franchisees and licensed locations. The Company is selling heat n’ serve pouches to a national restaurant chain. In the educational segment, it sells its bulk flash-frozen Original Soupman soups and other products to schools and colleges, such as the New York City Public school system. These additional products include vegetarian items, such a Mexicali Beans, Stewed Pinto Beans and Curried Chick Peas with Tomatillos.
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SOUPQ’s Chapter 11 petition was filed in the United States Bankruptcy Court in Delaware. Here is the original letter below along with some information on the CFO.
“The combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection. This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers.”
“The ongoing support from our lender through our new DIP facility will allow us to continue business operations as normal. We anticipate that there will be no disruption in the quality of our product or service that we provide to our vendors and customers during this transition period,” said Jamie Karson, CEO.
Robert Bertrand, 62, avoided paying Medicare, Social Security and federal income taxes to the tune of more than $593,000 by not reporting cash earnings or the fact that Soupman employees were compensated on the side with stock awards, the US Attorney’s Office in Brooklyn said. The scheme went on from 2010 to 2014 — resulting in more than $2.8 million in cash and stock compensation flying under the radar, the feds said.
Soupman Inc (OTCMKTS:SOUPQ) traded strong earlier this week and has been volatile as the week has closed. We suggest investors watch out for the response from Wealthcolony to see what the investment firm intends to do with the company. SOUPQ has a $23.79M market cap along with 288.85M shares out. We will be watching the stock this week closely. For continuing coverage on shares of $SOUPQ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $SOUPQ, either long or short, and we have not been compensated for this article.