Step 3 would be to re-register with SEC and clean up the balance sheet.
To get investors interested in the company, it must re-register with the SEC which would include audited financial statements. This helps company gain the confidence with the investing public of its legitimacy.
The second part is to clean up the balance sheet. The company needs to get rid of the convertible notes payable. Investors' want to know that the company has a fixed amount of outstanding shares so it will not be unnecessarily dilutive.
The company needs just common shares no shares(preferred, etc) that confer special rights to other shareholders. That help develop confidence in the management that they are looking out for all of its shareholders equally.
If the company becomes more successful, a third party could make an offer. This could be a problem for short sellers because of their ( the buyer) large cash account and the stable of high priced lawyers.
A company like Netflix could want to increase their catalog or remove competition.
Large companies buy small companies all the time.
You don't hear (not reported) about it because it is "not material" based on the acquirer's size.
It sounds like Lyle, Chuck and the Directors (Investors) are finding new opportunities to spread the APG system without just depending the the oil/gas spread.
2016 sure does sound like it could be a better year with all the new directions.
Maybe the plan is to sell a limited amount . Once a certain level is achived it will be ended.
Could be a way to raise cash quickly!
The price of the stock 3,6 or 12 months ago is gone. Investors have a chance to buy it now at .10-.12 per share. What management does from this day forward is what counts. If their new opportunities are sucessfull, the stock could rally several hundred percent.
Get Management to get rid of the convertible Notes payable. Short sellers have two ways to win 1. is company goes bankrupt (less likely based on all the good news) 2. can replace shares in another way such as being able to convert Convertible notes or warrants.
Management needs to protect the shareholders if they want the pps to rise.
My concern is the convertible notes holders aren't selling the stock pushing their price lower to convert so they really will not have to replace the shares they sold.
Example, maybe they convert 80% the the closing share price over 3,10 or 20 days. So all they want is a lower closing price in which to replace the shares they sold short.
I don't know the terms of the notes so this is just a educated guess.
If that is what is happening.
Get your facts right! Company has 1.378 billion outstanding. Thus at .0064, the company is worth over
8 million dollars.
If management isn't happy with the offers. What keeping the interested parties buying the stock that has drop so much thus going around them!.
The best way to achive the goal of being the "Netflix of 4k" is to follow the Netflix model.
So the first step is to reverse the stock 1,000:1. Most investors think a sub penny stock is either a scam or bankrupt. Most investors and/or funds(mutual, etc) are not legally allowed to purchase stocks at sub-penny prices. Thus the company has eliminated a large group that could get behind the stock. If I remember correctly Netflix didn't trade publicly as sub penny stock so neither should NTEK if the wants to model Netflix success story.
Step two is to change the company name to UltraFlix and/or either spin off UltraFlix (with the 4k assets) or spinoff or sell the other divisions.
Investors like "clean companies" and management could concentrate on developing 4k business.
Maybe the company could spin off UltraFlix by giving shareholders one share of Ultraflix for every 1,000 shares of NTEK. That would solve two issues in one move.
First, the company debt is less than what houses sell for in Silcon Valley. I would hope they could raise that much money.
Second, if the business plan is sound wouldn't Mr Foley rather own 10% of a company worth 100 of millions of dollar or 50% of a 10 million company.
plus, if he would complete step 3, investors might get the stock price up where selling new shares would not be too dilutive.