Ken are you sure that NPEC owns 20% of MDIN? Please explain.
Refering to this PR-it would seem that on a fully diluted basis-NPEC only owns 6% of MDIN. (1.5 million converts to 6 million-MDIN close to 100 million fully diluted now.) (Also-this would make more sense based on the current ratio of NPEC to MDIN share price.) Did NPEC end up with some of the FIRE MDIN shares as well? How many? I can't recall. Perhaps that is where you get your 20%? Thanks. NPEC is not my specility!
"Medinah Energy Announces Creation of Preferred Shares
Lake Elsinore, Ca., August 4, 1998... Medinah Energy Inc., wishes to announce the adoption of a resolution creating 10,000,000 Class A preferred shares holding the following privileges:
1. Issue and redemption price - $1.00 per share;
2. Dividend rate - $0.10 per share, payable at such time as the Board of Directors determine;
3. Convertible at the option of the holder to common charges of the Corporation at the ratio of $0.25 for each common share divided by the purchase price of each preferred share of $1.00 each;
4. Owners of record may convert 1/3 of their Class A shares on July 10, 1999, 2000, 2001;
5. Any preferred share issued under this series shall not be accorded any voting rights of whatever nature or kind.
Medinah has distributed 8,965,000 Class A preferred shares; 7,465,000 preferred shares to Frontier International Resources in exchange for cancellation of the 25,000,000 common 144 shares of Medinah issued under the Frontier/NP Energy Corp/Medinah acquisition agreement regarding the acquisition of the Chilean mining properties, and a further 1,500,000 Class A preferred shares to NP Energy Corp. as settlement for any and all interests and participation NP might retain pursuant to the Frontier/NP/Medinah acquisition agreements.
Frontier International Resource Inc. will distribute the Class A preferred shares of Medinah to its shareholders, which include NP Energy Corp., Medinah Energy and other public shareholders on the ratio of one Class ''A'' preferred share for each 4 common shares of Frontier."
I just found this post-perhaps it explains it where you got the 20% Thanks anyways!
"OK gang, here's the scoop from the horse's mouth.
I talked to Larry today. Official word is that the 14.4 NPEC originally "owned" in MDIN were in fact the proportion of Frontier's ownership of MDIN shares as represented by NPEC's 43% ownership of Frontier stock. Now the numbers don't work out quite right because this would mean FIRE owned about 33.5 million shares of MDIN. Maybe they owned some before the big transaction last year, I don't know. Maybe they've sold some since, I don't know. Didn't ask him.
Anyway, net result is that when the 25 million that FIRE owned got converted, NPEC then owns no common shares in MDIN. They do get the 3.2 something that is their 43% of FIRE's 7.465 (as was stated in both releases, FIRE is distributing those shares to it's stockholders).
In addition, NPEC got 1.5 million preferred in exchange for their residual 20% interests in the Chile properties.
So NPEC has no further interests in the properties (this does not include Brazil, Metroplus, or "patent pending"). They have no common shares of MDIN. They do have 4,707,950 preferred, eventually convertible at 4:1.
In addition, Larry confirms that MDIN does own part of FIRE and will therefore be getting a portion of the preferred back, and that portion will then be placed back in the treasury. He could not give me the exact number held. When I asked if MDIN held perhaps a similar position to NPEC's 43%, he said they did not.
DISCLAIMER: That's the gist of it. As I am having to recount this from memory slight details may be off a bit. I can not, of course, vouch for the complete honesty of what was said to me, though I have no reason to doubt it. Therefore, actual facts may differ somewhat from those reported here.
That settled? Hope now we can get on with our lives...
Geoff"
And yet another post:
"Ken:
Just so people are perfectly clear on this and make an informed investment decision...
boston.com.
NPEC holds a total of 4,707,950 shares of Medinah Class A Preferred shares. After conversion that translates to about 18.8MM shares of MDIN.
Those shares are convertible over a 4 year period beginning this July so I believe you'll see them discounted a bit when figuring a proper market cap for NPEC.
Along with that there's some properties in Brazil, a telecommunications company, and a Silver mine. It's likely you'll hear more about those in the coming weeks. There may be some other assets that I'm unaware of.
Cheers,
KMT" |
