It looks like the company took about $3.5 million of old notes and $400,000 of accrued interest and exchanged it for two things (1) a new note for $3.5 million at 10% (which is OK) and 175 million of shares (in two phases). The reason that looks fishy is because the 175 million shares are worth $5.25 million at 4 cents a share. So, it looks like they got paid for the note AND they re-wrote the note.
On another front, the $60K of legal expenses looks like it is NOT related to BJ Petro. It looks like the Company is paying fees for Miller in another -- unrelated --matter. That's OK, but it could be clearer.
As for the substance of what is going on . . . I am of two minds. I still think the company officers are (were) up to something. The BJ Petro and the 144A bond offering are bad and they should know it. On the other hand, it looks like the whole company has been handed over--virtually--to Miller. It looks like he is staking his claim and he has every incentive to make this thing work.
I would feel much better about you shareholders if Miller's shares were restricted--I did not see that they were. If he dumps the stock, it will tank.
The company does, however, look like it is going to be what it was intended to be--an energy company. It looks like it is going to drill wells and it looks like it is going to do asset based borrowing instead of all this crap with scammers like BJ Petro and the 144A bond. In fact, if the company announced that it would not -- under any circumstances -- enter a 144A bond offering, then I would think about buying.
How is that for a turn-around.
So, my advice . . . proceed with caution and pay close attention at the SH meeting.
My gut tells me this is a dog, with maggots, fleas and ticks, but there may be some favorable news to be had.
The first time I posted here was after the BJ Petro mess. I could not believe these guys were acting like they were. They were probably under a lot of pressure from the lender. (Loan was 20%). They hit the panic button and started throwing crap against the wall.
I later visited this site to see what was going on and to see how far the scam would go.
My later posts were mainly done as a result of people challenging me. Even though I am just a keyboard on this board, I took it personally when Molly and others tried to question my motives--mainly because I was being honest about things, and I wanted to make that clear.
I still think all of Management needs to be cast aside, but . . .
Then Miller rides in and basically takes over the company. He has a very big chunk of the stock, but I guess I would be OK with that if I were a shareholder, because I now have his attention. With this large stake, he probably will work hard to make the deal work--and the company does have some real assets.
The real key is to figure out who this guy is. I know nothing about him, but I am not interested to watch this thing a little.
With this kind of change, I want to see if this stock moves. I am still not in, and really do not plan to get in. But I do find myself checking this stock from time to time.
So, we will see. Let's keep an open mind, but please make sure you punish these guys at the shareholders meeting.