XNRG has effected a Section 3(a)(10) exemption to sell 2 million dollars more worth of shares to the public for the settlement of past due bona fide debt owed.
The outstanding shares of XNRG are already over 8 billion, and this action seeks to drastically increase that by the sale of .0001 shares to the public for an unknown price at which these shares are issued, all along the lines of a nebulous "safety net" provision which is favorable to the debt holders, obviously.
I do not find hardly any of this debt claimed to be bona fide whatsoever, especially the debt owed to CM Research LLC, for promotional services.
Here is an excerpt from the Connecticut court document which shows this Section 3(a)(10) exemption in its entirety.
Original Connecticut court document here in entirety:
Money owed for oil wells never drilled, money owed to Jerry Mikolaczjk for services provided in 2011 when he was a consultant to the company and money owed to CMR and the Subcontractors for promotional services they claim they never provided.
This is the precedent where the SEC applied Section 17(b) of the Securities Act of 1933 to the internet promotion of stocks. Disclaimer must be made as to the compensated nature in whatever form that might be, whether stock or cash or other.
The actions of CMR subcontractors as detailed in the Section 3(a)(10) exemption detailed in the aforementioned and linked court document must be disclosed in nature, or else they are illegal according to established law, which is linked as well.
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