ADOMANI ADOM
ADOMANI is an electric-drivetrain reseller founded by convicted felons with zero 2017 revenues against a $69M forecast, yet trading at a $500M cap — White Diamond sees 90%+ downside.
Thesis
ADOMANI (ADOM), an electric-drivetrain 'manufacturer' that reached the public market via a Reg A+ crowdfunded IPO in June 2017, forecast $69M of 2017 sales in its prospectus and has booked exactly zero. The company is effectively a middleman reseller — batteries, motors and drivetrains all come from third parties (GreenPower, Blue Bird, EDI) and its CTO's BS degree is in Finance. Co-founders Dennis Di Ricco and James Rogers are convicted felons with California desist-and-refrain orders for prior securities fraud, yet together control roughly 18M ADOM shares. White Diamond argues the $500M fully diluted valuation is indefensible versus peers (GreenPower $28M, Greenkraft $11M) and will collapse once October 2017 warrant exerciseability and the 180-day investor lockup expire in December, releasing ~50M cheap insider shares — including 21M options struck at $0.10 — into a thin market.
SCQA
ADOMANI (ADOM) is a Reg A+ crowdfunded electric-drivetrain reseller that went public in June 2017 at $5 and now trades near a $500M-$800M fully diluted market cap despite no meaningful sales history.
Co-founders are convicted felons barred by California regulators; 'patented' technology is a low-tech kit assembled from third-party parts; 2017 revenues are zero against the $69M prospectus forecast.
Short ADOM ahead of October 2017 warrant exerciseability and the December 2017 investor lockup expiry, when ~50M cheap insider shares — including 21M options struck at $0.10 — flood a thinly traded market.
90%+ downside over six months as forced disclosure of zero revenue and a wave of insider dilution collapse the $500M valuation toward peers like GreenPower ($28M) and Greenkraft ($11M).
The three reasons
- 1
ADOMANI forecast $69M of 2017 revenue in its Reg A+ prospectus and has booked $0
- 2
Co-founder Dennis Di Ricco is a convicted felon under California desist-and-refrain orders
- 3
21M insider options at $0.10 strike become exercisable October 22, 2017
KPIs cited
Pattern membership
Precedents cited
- Ominto (OMNT) — prior White Diamond short, 78% decline from call to Sept 2017
Composition what's on the 14 slides
Slide gallery ·
Notes
Word-document-style short report with inline screenshots of SEC filings, LinkedIn pages, and the ADOMANI prospectus — no custom slide design. Filename dates the file 2018-04 but body content (e.g. 'Starting on October 22, 2017, insider stock options will be exerciseable') is forward-looking at the time of writing, suggesting the substantive report was drafted in late summer/fall 2017; presentation_date left null due to this ambiguity. Report leans on three mutually reinforcing attacks: (1) criminal histories of Di Ricco, Rogers, and Monfort; (2) revenue-vs-forecast gap; (3) impending supply tsunami from warrants, options and lockup expiry. Cites the prior Ominto (OMNT) short as track-record precedent. Peer comparison is textual, not charted.