Big email from Mr. Vanis last night!
Good evening, Jeff,
Thank you for your interest in Minerco / Level 5. I am short on time tonight…I have 40 min until kids get home and I have 20 emails to answer…so I will get right to it.
The A/S was increased to (1) be responsible, (2) reserve enough shares to cover the Preferred Classes of stock (as per our by laws and regulations) and (3) have currency available to negotiate in “good faith” with endorsers. The A/S is not registered under a registration statement; therefore, the shares are not free trading and will not enter the market on July 31. These shares can only enter the market if they meet the exemptions defined in the Securities Act, as amended. Let me know if you want more information on this topic.
The PPS of any public company’s stock is controlled by the investors and traders (and unofficially the Market Makers). Our company has very few convertible notes left on the books, and the interpretation of the closing of these notes (via conversion or cash or exchange) on our PPS is up to the shareholders.
As far as JMJ is concerned, we have on-going litigation with them…so I am limited on what I can or will say, but…
JMJ will most likely convert in late August for 2 reasons: (1) the prepayment date has passed and (2) we did not prepay the note before because it would have been a waste of capital due to the open litigation (JMJ would never apply the funds to the item we dictated – therefore wasted). The conversion is estimated to be approximately 10 million shares; however, we may seek an injunction and temporary restraining order for the conversion. Likely, the business decision (cost – benefit analysis) of fighting this conversion will not be beneficial to the Company or our shareholders. The ongoing litigation is expected to be scheduled for trial in 2015 (if we do not get a Summary Judgment sooner). If we win, we will get all of our shares back (105 million plus estimated 10 million) or we will get the cash equivalent (the Judge will decide).
As I have said before, the best use of the Company’s capital is to grow and expand the business in a responsible manner. The biggest driver of shareholder value, at this time, is sales, revenue and brand saturation.
Let me know if you have any additional questions / concerns!
Have a great evening!
Scott
AI
