INTERRRESTING-POST-ABOUT-FAGI #NOTGOOD
AS WRITTEN BY WALDO777
The first question is does FAGI really only have $238 in their checking account? The second question is how could they pay all of their bills and keep the lights on if that is all that they have?
The $238 number comes straight from the FAGI 3rd quarter report filed with the SEC. They had a similar amount in the prior year. Is FAGI lying to the SEC???
Okay, so how does FAGI keep the lights on? We know that they don't have any businesses that generate revenue. So what gives? This is the heart of the scam.FAGI insiders have given themselves some convertible debt that allows them to buy stock at the outrageously low price of $0.0025.
As they convert they have to pay the conversion price ($0.0025 per
share) to FAGI's account. According to the filings with the SEC nearly 24,000,000 shares had been created from conversion in just the one year ended 9/30/17. According to some posters that have contacted the transfer agent another 12,000,000 or so new shares have been created since 9/30/17. If we multiply the new shares (36,000,000) times the conversion price ($0.0025) we get $90,000. This $90,000 (paid to FAGI) has been just enough to allow FAGI to scrape by.Anytime they need more money they just convert more debt to shares. If that isn't enough the sweetheart loan in exchange for 25 million preferred can fill in the rest.
Of course, the insiders then sell enough shares in the open market to get their money back and a lot more. For instance, to get the whole $90,000 back by selling at say an average price of $0.30, it would only require selling300,000 shares of their 36,000,000 shares. As all of this unfolds, shareholders have been diluted by about 3600% in just over a year.
It was also suggested that the veracity of the FAGI deal has been confirmed by Riedel Research. There are several red flags. First the Riedel report was written in June of 2016. It is old news. Second, Riedel touted that BHGI (now FAGI) owned $286,000,000 in Mexican assets.
That is fake news, as even FAGI admitted in a Feb. 2017 Letter to Shareholders. Of course nothing ever showed up in the subsequent financials filed with the SEC. More proof is that FAGI is back claiming to have just bought those same assets last week. If they owned them in June of 2016 as Riedel claimed why are they buying them again. Clearly Riedel had it wrong. A fake news 8Kwas filed with the SEC over 1 1/2 years ago indicating the COMPLETION of a purchase of a portion of Grupo.
Now they are supposedly buying it all over again. Third, Riedel never said FAGI shares would have a book value of over $11. This $11 number was created by a poster derived from ridiculous assumptions failing to include any cost to acquire Grupo and the ongoing constant dilution.
I would not trust any information about this company.
