EMEX update - this is a reprint of a post by Yogalad,
friend and member of the POSALERT Club
Friday's runup mystery revealed? EMEX reported non-earnings today afterhours. They achieved a staggering $35,000 in revs for the quarter. Not bad for a $483,140,000 company. Losses were $1,540,000. Cash decreased from $2,279,000 to $698,000 in the last three months.
And they've fallen behind on their royalty payments to the Doyon tribe.
'a payment of $300,000 that came due under the agreement on April 1, 2001 has not been made. No notice has been received from Doyon to start the running of the contractual cure period. At March 31, 2001 the Company's required exploration expenditures commitment under the Agreement is approximately $2,000,000 for the next twelve months.'
The insiders are funding the losses for now.
'The Company intends to raise funds for continuing operations through a public offering of its common stock, for which purpose a registration statement is presently in preparation. The exact form of such offering has not yet been determined, and there can be no assurance that it will be successful. Among other things, the Company is considering a "rights offering" pursuant to which public shareholders, i.e. shareholders other than the two major shareholders, would be given the right to subscribe at a discount from the market price for additional shares in a specified proportion to shares already held.'
To supply partial bridge funding pending the public offering, after the end of the fiscal period being reported on a loan of $200,000 was made to the Company by one of the major stockholders, and the major shareholders have stated that it is their intention to continue to furnish such bridge funding.'
It's clear that the insiders are trying to pump this up for the PP. I just hope to hell they get the PP out soon so that they can stop supporting the price and let the PP's short the hell out of it.
Thank You Yogalad for the info.
Michail |
