Alternative Energy Partners Inc (AEGY)

[TenKay]

"In the Haltain documents it states that their shareholders will own 100% of the new company - ouch! "

Well to be fair, what they are referring to is the new "707" company set up to negotiate an agreement to buy AEGY. That could then play out a number of different ways including no definitive agreement being reached.

But I think there are a few clues as to what could happen if an agreement is negotiated. There is very little if any cash around with any of the entities in play here. So if AEGY was to be purchased by 707...it would likely be for stock. But that could go a number of different ways...and it is a pretty safe to bet that the new 707 shareholders won't be willing to bet the farm or give bunch of equity for a company that has zero revenue. They will each have shares in five different entities at that point anyway and who cares if one goes south. Meanwhile AEGY shareholders will be waiting to see what they get offered.

But no matter what...existing AEGY shareholders will be diluted significantly. Only a fraction of the ownership of 707 will likely go to existing AEGY shareholders yet the entire AEGY asset will now be owned by 707.

If 707 uses preferred shares for the transaction it will be even worse as they would likely have a holding period if there is a conversion feature so it could be possible that AEGY shareholders will get a stock that is not tradeable in the market...while the 707 holders can trade the common stock.

And now that AEGY is no longer an SEC filer...they don't have to say much of anything.