Harry, this whole REMC deal reminds me of a number of bank scams where the con tells the mark that he needs his help to deposit hundreds of thousands of dollars he got from overseas... for a nice reward, of course. All the con needs, as a "token of good faith", is to put up a mere ten grand or so [For a real life example, see: sacbee.com ].
In this case, Marathon told REMC that they'd be happy to give them $40M in exchange for 8 million shares, so long as REMC gave them a "mere" $100K in processing fees. Such a deal! As they say, if it appears to be too good to be true it probably is. Why in the world would REMC, with assets of about $20K, think anyone would even consider offering them tens of millions? And, assuming REMC was so self-deluded they really, truly believed they were worth it, how could they rationalize why Marathon only wanted 8 million shares in return when said shares were trading for (as far as I can tell from spotty charts) just a buck? In a market where death spiral financing is the rule more than the exception, did REMC really think anyone would pay market value, let alone 5x? Get a clue.
So, could REMC truly have been suckered by Marathon? Welllll... I suppose so. But I see all sorts of red flags.
- Jeff |
