A brief history of MTEI (previously ICVI) taken from RavenCrazy's web site:
geocities.com
ICVI was clearly a penny stock. In January of 1998 its share value fluctuated between 2 and 7 cents. In February it moved between 8 and 20 cents. The average March price was 9 cents, and the average April price dipped back to 7 cents. At some point, things that we shareholders have not completely uncovered began to take place. Price jumps became very notable. The stock was being hyped on the online message boards greatly.
On May 14, with a volume of 1.3 million, ICVI closed at 0.042, but four days later the stock closed at 0.142 with a volume of 10.6 million. On the following day, May 19, ICVI closed at 0.20 with 13.1 million shares traded. One day later and the price more than doubled to close at 0.43, followed by a rise the following day to 0.77.
By the spring of 1998, ICVI showed little promise for the future, and its shareholders expressed discontent on the online boards. Despite its name, the company was in the business of owning convenience stores in the Dallas area. While the company was basically worth nothing, it was a shell listed on NASD OTC bulletin board and thus provided a quick entry to that board for a newly formed company called Mountain Energy.
On or about May 21, 1998, a reverse merger between the two companies began, filling the shell (ICVI) with the alleged assets of Mountain Energy. These assets were stated publicly to be worth 200 million dollars, giving the new company a book value of 2.85. These figures were released by ICVI in a press release on May 21. ICVI shareholders were issued one share of MTEI for every share they held of ICVI. ICVI was given 50 million shares of the new company. The reverse merger actually took place on or about May 24, 1998. This was a couple of days after the time when the stock price was doubling nearly every day. The merger was handled by Strategic Risk Management of New York. The transfer agent was American Registrar & Transfer.
On May 28, 1998, MTEI issued a press release, claiming to have between $110,000,000 and $170,000,000 in assets, consisting of coal, oil, and coal methane gas. On June 8, 1998 MTEI stated in another press release that it had received acceptance on its purchase offer to acquire an additional 8,000 acres of mineral reserves in Lincoln and Raleigh counties in West Virginia. They also stated that Mountain Energy Inc. had retained Stagg Engineering Services Inc. (Crosslands, West Virginia), to conduct reserve studies on the acquired acreage, providing an evaluation of the properties.
Meanwhile, what all this meant to the penny stock investor that they could buy stock at a very low price which was, by claims of company value, worth at least 2.85 a share. On June 1, MTEI reached its all-time high, 1.63, and closed at 1.53, with 6.6 million shares traded.
On June 18, 98 MTEI issued another press release stating that MTEI presently owned 20,000 acres in West Virginia, with full control over the mineral rights. Such properties, according to this press release, contained in excess of 2 billion cubic feet of gas and 10 million tons of coal. Additionally, they announced the purchase of 8,000 acres, on which Stagg Engineering was said to be engaged in reserve studies to arrive at the present net asset value of these properties.
On June 24, 1998, MTEI issued another press release recanting the totals from the PR on June 18, 98 calling the figures in that release a "typo."
They went on to say:
"As of this date, Mountain Energy has purchased and accepted the deed to numerous properties in West Virginia totaling more than 5,000 acres. In addition MTEI has a letter of intent with Pacific Tax Properties to purchase an additional 8,000 acres, plus or minus, pending the evaluation results of a study presently being done by Stagg Engineering Company and the geological and engineering staffs of MTEI."
On shareholders' online message boards, posters were concerned about the involvement of prior management of ICVI, in whom many had lost faith after losing much money. Mtei tried to separate itself from ICVI with this statment:
"The MTEI management team consists of personnel with no previous or current affiliation to the former company ICVI."
On July 27, 98 MTEI released this PR.
"HOUSTON--(BUSINESS WIRE)--July 27, 1998--Mountain Energy Inc. (OTCBB:MTEI - news), formerly International Casino Cruises Inc., has filed a lawsuit against prior management and others in the District Court of Harris County, Texas. Damages, equitable and other relief are being sought. Investigation is continuing."
Some Investors obtained the Court documents and released the names of the Defendants. They are as follows:
John Christensen, Karvi Corporation (foreign), American Registrar & Transfer, Market Formulation and Research (MFRC), C Saw Investments LTD, Growth International, MLJ Management (New York) and Rampart Securities Inc. There were a total of eleven(11) defendents.
The suit was regarding extra shares issued and not reported to MTEI at the time of the reverse merger. There is also some question regarding Market Formulation and Research now named Convenience Concepts Inc. (ICCI), this company is owned by John Christensen and has at least three(3) Gas Station/Convience stores that may belong to MTEI.
ICCI's website has not been updated since March 19, 98, it states that on or about Feb. 2, 98 ICVI created a subsidiary called Convenience Concepts Inc. to aquire Convenience stores.
No mention of this subsidiary was made in any press release regarding the merger or reverse merger, MTEI was to have retained all of ICVI's assets, without seeing the documents we must take this to mean that ICCI belongs to MTEI.
On July 28, 98 MTEI released a statment saying that a mistake had been made regarding a news release issued by the Canadian Energy Company, North Star . This press release also stated that
"MTEI has negotiated final terms for the purchase of approximately 3,000 acres of oil and gas leases in Texas. An agreement in principle had been reached and all parties and is expect to close within the next ten days."
On July 28, 98 MTEI announced the engagement of Dunn Engineering Inc., of West Virginia and J.R. Butler and Company of Houston, Texas to perform the reserve studies of purchased properties in West Virginia in place of Stagg Engineering. That day, on a volume in excess of a million, MTEI's price dropped just below 18 cents.
On July 29, 98 the SEC halted trading of MTEI, the SEC said it had questions about the adequacy and accuracy of publicly disseminated information concerning the company's ownership of certain properties and the valuation of the mineral assets on them.
On July 30, 98 MTEI released a statement regarding the SEC halt. In this PR MTEI that it was granted a temporary restraining order against prior management(ICVI), their affiliated entities, and others, prohibiting them from selling Mountain Energy stock.
On Aug. 3, 98 MTEI released a PR stating that it had purchased a mineral lease to explore for oil and gas on 2,900 acres, more or less, in Bastrop County, Texas.
On Aug. 17, 98 MTEI announced that
"all employees have been discharged as a result of the company's inability to obtain adequate funding to continue operations, that its current management has resigned, and that the company's corporate documents are being delivered to the United States Securities & Exchange Commission for safe keeping until new management can be elected by the company's shareholders." |
