O.K. folks, I will admit that I am pretty confused by all of the REG S convertible debenture (read common stock placements) placements. Oilex seems to have found a way to print money for the "Holder". Whether or not any of these funds are actually ending up in Oilex's bank account I have no way of knowing.
What is apparent is that the number of outstanding shares (and, by necessity, authorized shares) is going to increase enormously. Let's look at the verifiable numbers as provided by today's filings. We know that on October 22, 1997, the company issued $1,250,000 of convertible debentures of which $625,000 has been committed as of January 13, 1998. These may be converted at 80% of the price of the shares at the time of conversion, giving them $781,250 worth of purchasing power for the common stock. Similarly, on January 6, 1997, the company issued $650,000 of convertible debentures of which $312,500 had been committed as of January 13, 1998. These also may be converted at 80 % of the price of the shares at the time of conversion, giving them $390,625 worth of purchasing power for the common stock. The total of the two committed amounts is $1,171,875. At today's price of $.035, that would convert to 33,482,142 shares of pre-split stock. Considering the fact that there are presently (on the pre-split basis) only 50,000,000 shares authorized and, as of today, 44,485 030 shares outstanding, do you think that the reverse 1 to 20 split applies to the authorized shares as Ajay says? Maybe his math can figure some way to make all these new shares fit into the 5,514,970 authorized share limit that is presently (supposedly) in place.
I find it very interesting that Omar and Baron-Marney are nowhere to be found. Why does not the company come out and clarify all of the questions that have been raised by the flood of new paper?
This whole situation reminds me of a nest of cockroaches. If you have ever gone into your kitchen late at night, turned on the light and seen any cockroaches, you will know what I mean. The cockroaches run for cover, their holes and crevices. Cockroaches like to conduct their activities in secret, under the cover of darkness. They cannot stand to have the light shine on them. Whenever subjected to the light of discovery, they scamper to some safe haven. In addition, whatever they get into, they spoil. Of course, this is just an observation. This is just me expressing my opinion, although judging from the letter they sent to Offie, the law firm representing Oilex apparently does not agree with my right to do so. |
