As we have seen in the past, Core Solutions, Inc. (OTCBB: CSUOE) has been long on promises and short on performance. See Premier Axium ASP, Inc. - 25 Million Reasons; and Update: Core Solutions, Inc (F/K/A Premier Axium ASP, Inc.) – Only The Name Has Changed. Now the Company is once again shifting its direction, and changing its name.
Core Solutions greeted 2003 by predicting that it would secure $52 million in new accounts for its outsourcing business by the third quarter of the year. By mid-January, the Company was saying that it expected to make one acquisition each month during 2003, each of which would generate another $10 million in expected revenues. See Update: Core Solutions, Inc (F/K/A Premier Axium ASP, Inc.) – So Much For Promises
Alas, such bold predictions proved empty; as the weeks went by there was no sign of this impressive revenue stream. Instead, in March 2003, the Company said it was abandoning its human resource outsourcing operation and entering the real estate business.
Core Solutions – and its principal spokesperson, CEO Christine Favara – offered no explanation, and no apology, for this sudden shift. Investors who had relied upon the Company’s aggressive predictions for its outsourcing business were simply out of luck.
Still, Ms. Favara seemed no less enthusiastic about the Company’s prospects, even if it was now embarked on a completely new venture. In that spirit on March 19th she declared:
I have been researching the real estate market and feel that the transition for us at this juncture is impeccable, and I am looking forward to giving shareholders a company they can really sink their teeth into, with real, hard assets on the balance sheet."
Within weeks she was announcing that the Company had made plans to purchase its first property and was “looking forward to closing at least two more properties by the end of the second quarter as well.”
Ms. Favara did not say how the Company would pay for, or finance, those acquisitions. The present financial condition of Core Solutions remains a mystery. The Company failed to file its Form 10-K Financial Report for the year ended December 31, 2002, citing “ministerial difficulties.” On March 24, 2003 Core Solutions advised the Securities and Exchange Commission of that delay, saying that it planned to file the information “within the additional time period allowed by this report” – presumably 15 business days. So far, however, no Form 10-K has been filed for the year 2002, and there have been no financial reports filed for 2003. As a consequence, the Company has had an “E” added to its trading symbol, indicating that it will lose its OTC Bulletin Board listing later this month unless its financial filings are brought up to date.
In any event, there is no sign that the Company has closed on any of its contemplated real estate transactions.
The latest news from Core Solutions is particularly disquieting. Ms. Favara is gone. On April 23rd she resigned as President and Director and transferred her controlling interest in the Company to an individual named Tina Cowan in exchange for $15,000 – a seemingly paltry sum considering Ms. Favara’s earlier revenue predictions. Ms. Cowan is now the Company’s President, and a member of its Board of Directors. According to a Form 8-K filed by Core Solutions on May 5, 2003, Ms. Cowan will be joined on the Board by Marilou McAuley (the new Secretary) and Robert M. Dermake (the new Treasurer).
The Form 8-K also revealed that the Company planned to change its name to “Sunshine Ventures.” Although the Form 8-K did not say what business Sunshine Ventures would pursue, the new management team is already off and running – in the same direction as their predecessors. They plan a 25,000-to-1 reverse-split of the Company’s common stock for all investors as of April 24, 2003. This follows a 1-for-10,000 reverse split on July 14, 2002 (when the Company was calling itself Premier Axium). Update: Core Solutions, Inc (F/K/A Premier Axium ASP, Inc.) – A Shrinking Core. That means a shareholder who owned 250 million shares of the Company’s common stock on July 13, 2002 will now own just 1 share of Sunshine Ventures.
Where’s the Sunshine in that?
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