Reminder.
Message 21059567
SPRL .32 has sold out to a financier that gets a larger percentage of the company as the price drops. A big red flag.
SPRL gains by increasing volume, allowing it to sell Nutmeg more discounted shares and get much needed cash. And Nutmeg gains by seeing price drop and getting more shares/control. Volume now more a concern than price. I'd look for frequency of Prs to increase, much like other cash-strapped pinkies.
More troubling is Nutmeg claims to have 30 million+ OPM under management, per PRs and website, and in this case, reports they are obligating themselves in staking 2/3 of their capital on a non-reporting pink sheet company.
Just went to their website. They play that "Your Company Just Got Shorted In The Bahamas" music
And sho nough, the Virgin Island connection is seen in Nutmeg's director profiles.
The big kicker is four days after Nutmeg financing is announced, a tout service is paid by an undisclosed 3rd party to rile up interest in SPRL
I haven't researched this stuff in years and could care less, but from what I remember, the above would make me very cautious. After GAAY, many others, and the bubble, my gut says to always play the Devil's advocate when reading Prs on non-reporting pennies. I would think you would too.
Good luck on this one
tngroupllc.com
ADZR borrowed June 8, 2004
finance.yahoo.com
CXN in September
finance.yahoo.com
NNBP in Aug
finance.yahoo.com
I could go on finding holes here, but it's not one to bank on after running up from .03 to .36
Strat Petroleum Secures $2 Million Short-Term Lending Facility and $20 Million Long-Term Funding Facility
Monday February 7, 4:00 pm ET
TORONTO--(BUSINESS WIRE)--Feb. 7, 2005--Strat Petroleum, Ltd. (OTCPS:SPRL) today announced that it has signed a Standby Equity Line Agreement (the "Agreement") that allows it, at its option, to issue shares to US-based investment fund The Nutmeg Group LLC (www.tngroupllc.com), up to a maximum value of US$20 million.
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Under the terms of the Agreement, Strat Petroleum may, at its discretion, issue shares to Nutmeg at any time over the next two years. The maximum aggregate amount of the equity placements pursuant to the Agreement is $20 million. Subject to this limitation, Strat Petroleum may draw down up to 200% of the average daily volume (U.S market only) ("ADV") computed using the ten (10) trading days prior to the drawdown request. The facility may be used in whole or in part entirely at Strat Petroleum's discretion, subject to an effective registration.
Shares issued to Nutmeg will be priced at a 7.5% discount to the lowest daily Volume Weighted Average Price ('VWAP') of Strat Petroleum, Ltd. shares traded on each of the five days following a drawdown notice by Strat Petroleum. No commissions will apply to each issue of Strat Petroleum shares under the Agreement, however, a flat non-accountable expense allowance of $1,500 will be payable to Nutmeg at the time of issue.
In addition, Strat Petroleum has set in place a non-recourse loan with common stock as collateral, with a 49.875% net loan to value. Strat Petroleum, at its discretion may post up to eight million shares as collateral. The term of the loan is for one year, with an interest rate based on one-month LIBOR plus three percent, interest paid quarterly.
Randall S. Goulding, Managing Director of The Nutmeg Group, LLC, said "We are eager to assist Strat Petroleum in meeting its ongoing financing needs and we look forward to a long-term relationship with the Company."
The Nutmeg Group, LLC and its principals have been successful in raising capital through private placements and stock loans. With more than 30 million dollars under management, the Nutmeg Group, L.L.C. is a value-added private capital investment firm and a full service investment and financial consulting organization, dedicated to helping growth companies emerge as industry leaders. Staffed with an impressive array of diverse talents and a robust infrastructure, Nutmeg stands committed to facilitating the Company's success, as it is for all of its portfolio companies. Loren Comitor, President of CCM&A, Nutmeg's advertising and marketing affiliate, will endeavor to facilitate new marketing arrangements for the Company. Additionally, Nutmeg intends to enhance the Company's website and assure that the Company's image will reflect and be commensurate with its outstanding prospects.
"Our investment and ongoing commitment is prompted by our extreme optimism about the outlook for the Company and its capacity to ramp up its operation to seize opportunities" said The Nutmeg Group's Managing Director, Randall Goulding. "We believe the current valuation does not adequately reflect the enormous opportunities that exist for the company in both the near- and longer term."
"We are impressed with the Company's talented management resources, and for such a small company to have captured the opportunities -- is virtually unprecedented," Goulding continued.
"We plan to play an integral and continuing role in the Company's very promising future. We are pleased to be working in partnership with the Company to better position it to grow," said Goulding. "In fact," Goulding said, "the specific reason for this additional cash infusion is to focus on creating new business opportunities and joint ventures."
H. Sam Hyams, President and CEO of Strat Petroleum commented on the financing, "We are delighted to have signed these agreements that give us the option to draw down over $20 million over the next two years. The advantage of this method of structured financing is that although the funds are secured and available to us, any draw down of the facility will be totally at our discretion. We expect these funds to enable us to close several opportunities, including Orenburg, on our upcoming trip to the Russian Federation. The completion of acquisition of the 49% interest of the Rozhdestvenskoe oil site is the primary focus for Strat Petroleum."
Strat Petroleum, Ltd.'s strategy is to enhance shareholder value through the acquisition of oil & gas properties with proven reserves or producing/capped wells. Should you wish any additional information on our projects or management team, please visit our website at www.stratpetroleum.com or contact our Investor Relations office. Due to the volume of interest we will make every effort to respond as promptly as possible.
Statements made in this press release regarding the Company's or management's intention, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; uncertainties of completing business transactions; uncertainties of raising necessary capital; no control over long term pricing; possible reductions in demand for our products and services due to competition or changes in industry conditions or political environment; changes in the nature of energy regulation in the Russian Federation, the United States and other countries; political risk; currency exchange risk; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; reliance on management and management contacts; and other risks that may be referenced from time to time in the Company's filings with the Securities and Exchange Commission.
Contact:
Strat Petroleum, Ltd.
Kathy Bassi, 1-905-714-0058
www.stratpetroleum.com |
