Saleen Automotive Inc (OTCBB:SLNN) has agreed to sign an extension to its licensing agreement with GreenTech Automotive, Inc. The new Intellectual Property Licensing agreement allows for the expansion of distribution and rights to a Saleen brand and technology license to be used for the Asian markets. GTA has been representing Saleen vehicles in different auto-shows across Asia.

Steve Saleen, the CEO of SLNN, acknowledged the fact that gaining attention in any market can sometimes take decades of hard work. However, GTA has managed to do a whole lot more in a very short time. He further said that GTA’s continued dedication to promoting the Saleen brand across Asia. Additionally, GTA has revealed that it would be establishing a subsidiary, by the name Saleen Motors International, to distribute Saleen branded products. GTA has been exceptional in simplifying the launch of Saleen’s automotive line and also took care of all the branding and marketing activities to get Saleen on a firm footing.

Saleen management believes that the GTA has what it takes to continue this trend in other Asian markets and help it gain a reputable position. However, unfortunately Saleen, like many other penny stock companies, has a poor balance sheet. The company has made some very bold claims, with its mission being “manufacturing and marketing” high performance vehicles. However, the company has nothing in its balance sheet to back up these claims. Saleen’s latest filing showed just $95,000 in cash, net revenues of $536,000 and a quarterly net loss of $2.44 million. If the company is making progress and capturing markets, why are there so few revenues?

Additionally, companies with as meager finances as these tend to end up “drowning in debt”. The company’s recent agreement extension is set to coincide with the launch of 2015 Ford Mustang. The Mustang is itself a high performance vehicle and one which has been much awaited in the Chinese market. It could very well overshadow Saleen’s recent developments.

Saleen Automotive Inc (OTCBB:SLNN) experienced addition of $0.0002 to its share value, reaching a close at $0.0015.