MMEX is nothing more than a classic share selling scheme.
It has everything. Let’s examine it, top to bottom:
- it has a shady, sketchy management team, who have no track record of success in the industry
- it has a web site that is misleading, but sufficiently fluffy to appear credible to an uninformed person
- the “financing” is a collection of toxic debt, structured to look like a legitimate security
- the “business plan” is superficial at best, including boilerplate lifted from various internet sources, on-line presentations, knit together with incomplete narrative
- the narrative elements of the “business plan” are non-starters, beginning with a “Phase I” implementation that can never generate positive cash-flow, which in turn leads to a “Phase II” requiring more than 10X the initial capital, with a significantly higher bar to successful entry
- all of this is financed by penny stock, which has never been used to successfully finance a complex, capital intensive business like a refining operation
- there is a single administrative permit in place, one easily obtained by someone minimally skilled in the field, for the filing fee of $100
- there is a sketchy purchase of a worthless piece of land, for $10 “and other consideration” - a special warranty deed executed to provide air cover for the scheme, to lend an appearance of “doing something” for the unsophisticated
- there is a “design” in place, lifted from a textbook, by a consultancy with no track record of delivery in the industry, with an estimated price that exceeds the industry average by 50% for a crude unit that does not represent a complete refining operation
- the MMEX proposed facility is located on a deprecated, barely functional rail line, which does not currently reach its most critical target customer
- using easily available, legitimate industry data, an analyst can implode MMEX’s “business plan” in less than 10-minutes - it is fatally flawed in every single aspect
- it has a network of promotors, attempting to artificially inflate the share price on the basis of false, misleading information
