FXPT - huge outstanding share increase
On July 12, 2011 there were 128,174,997 shares outstanding
On October 17, 2011 there were 1,626,860,653 shares outstanding
That's an increase of 1,498,685,656 shares
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Who got all those shares?
Effective July 12, 2011, the Company amended its Articles of Incorporation increasing its authorized capital structure to 3,000,000,000 shares, consisting of 2,950,000,000 shares of common stock, par value $0.001, and 50,000,000 shares of preferred stock, par value $0.001.
On July 13, 2011, the Company issued 2,500,000,000 shares of its restricted common stock to Mr. William Lieberman, its President and Chief Executive Officer, for services rendered. The shares were valued at the market price on the date of issuance of $0.012, or a total of $30,000,000.
On August 12, 2011, Mr. William Lieberman, the Company’s President and Chief Executive Officer, returned to the Company 200,000,000 shares of its restricted common stock which were previously issued to him for services rendered. The shares credited to compensation costs and were valued at the market price on the date of issuance of $0.012, or a total of $2,400,000.
On August 22, 2011, the Company issued 155,000,000 shares of its restricted common stock to Mr. William Lieberman, its President and Chief Executive Officer, for services rendered. The shares were valued at the market price on the date of issuance of $0.0122, or a total of $1,891,000.
On August 31, 2011, Mr. William Lieberman, the Company’s President and Chief Executive Officer, returned to the Company 1,300,000,000 shares of its restricted common stock which were previously issued to him for services rendered. The shares credited to compensation costs and were valued at the market price on the date of issuance of $0.012, or a total of $15,600,000.
So when William Lieberman was done with all the share passing games he ended up with 1,155,000,000 common shares.
William Lieberman also issued himself 50,000,000 preferred shares which convert into 20 common shares each for a total of 200,000,000 common shares.
According to the balance sheet William Lieberman paid off $14,417,928 in salary due to him for his services with those 1,155,000,000 common shares and 50,000,000 preferred shares.
How in the world does somebody earn $14,417,928 when the company has not made even one penny in revenues during its entire existence?
That reeks of scam to me.
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Who got the other 343,685,656 common shares issued between July 12, 2011 and October 17, 2011?
Most of those went to the family of William Lieberman
According to the filings:
On November 4, 2002, the Company’s wholly-owned subsidiary, 1536692 Ontario, Inc. (“Ontario”), received $144,583 (CAD$ 225,000) from a family member of the Company’s President and Chief Executive Officer, with which the Company purchased production equipment (Note 4). Interest accrues at 6% compounded annually. Principal and interest are payable on demand. The promissory note is secured by the production equipment (Note 4), and any intangible assets developed or contract rights created by the Company in the future, pursuant to a General Security Agreement.
During the six months ended August 31, 2011, the Company issued 340,500,000 shares of its restricted common stock in conversion of $181,477 (CAD$ 187,061) of the notes payable, and $142,273 of accrued interest (CAD$ 146,025), at an average price of $0.0127 per share, realizing a loss on the debt conversions of $4,000,250. There is no remaining balance outstanding at August 31, 2011 of these notes payable.
The owner of 1536692 Ontario, Inc is Jack Lieberman - father of William Lieberman
Even at $.01/share those 340,500,000 shares end up being worth $3,405,000 for a debt Note that started out at $144,583.
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Who else got shares?
On August 24, 2011, the Company issued 1,690,141 shares of its restricted common stock in conversion of $12,000 of notes payable at a price of $0.0071 per share. (on that day that stock opened at $.015/share)
On August 30, 2011, the Company issued 2,272,727 shares of its restricted common stock in conversion of $15,000 of notes payable at a price of $0.0066 per share. (on that day the stock opened at $.012/share)
On September 1, 2011 the Company issued 1,462,687 shares of its restricted common stock in conversion of $9,800 of notes payable and accrued interest at a market price of $0.014 per share. (that's $.0066/share - on that day the stock opened at $.015/share)
On September 20, 2011, the company issued 2,000,000 shares of its restricted stock to a consultant for services rendered. The shares were valued at the market price on the date of issuance of $0.0531, or $106,200.
On October 7, 2011, the company issued 6,000,000 shares of its restricted common stock in conversion for $6,000 of loans payable and accrued interest at a market price of $0.024 per share. (that's $.001/share - on that day the stock opened at $.021/share)
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So not only do we have William Lieberman paying himself $14,417,928 for his worthless services. We have William Lieberman paying his dad $3,405,000 for a $144,583 loan, and we have super discounted shares being issued towards other debts.
With shares being issued at a fraction of the market price how many shares do you think it will take to pay off the remaining $6,803,304 in debt Notes and interest owed?
FXPT paid off less in principal during the 3 months from May 31, 2011 - August 31, 2011 than what the Note earned in interest.
The principal balance on the Notes went down by $214,000, but the interest owed on the Notes went up by $243,000 during that 3 months.
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And you can't mention FXPT without pointing out the rinse, wash, repeat Renfro scheme.
To help pump the share price while Daddy Lieberman dumps his shares William Lieberman signs an agreement with Renfro Energy LLC to purchase that business entity for $300,000.
It is of course never going to happen (in my opinion) because FXPT has no money to complete the acquisition and eventually the acquisition will get canceled just like with BRZL, but let's see what the filings say about the acquisition:
On September 7, 2011, the Company entered into a Purchase and Sale agreement to acquire the assets of Renfro Energy LLC, a Texas limited liability company, and Cameron Parish Pipelines LLC, a Texas limited liability company, for a combined $300,000 in cash. As additional compensation to the seller, the Company agrees to convey and assign at the closing a Ten Percent (10%) Net Profits Interest (“NPI”) to the seller. NPI is defined as revenues attributable to oil and gas production, less direct expenses and costs, from the Cameron Parish School Board lease (“CPSB”). The Company expects the acquisition to be completed by October 31, 2011 contingent upon the successful completion of audits of both companies.
James Renfro is probably no idiot. He isn't going to waste his company on a shell that has the debt issues and insider enrichment associated with FXPT.
Some people may argue that the Lieberman's paying off all their debts with share issuances may be a sign that the Renfro acquisition may be headed towards completion.
Even if by some miracle FXPT borrows some money to make it happen and Lieberman steps down from all of his officer and director positions it is not going to change the disastrous financial situation of the FXPT shell. Lieberman will have all those shares to eventually dump and all those debt Notes that are still outstanding and accumulating a quarter of a million dollars in interest each quarter will amount to several billion more shares being issued and dumped into the market.
FXPT is a future no bid, multiple reverse split stock.
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People need to stop paying for the Lieberman's big houses and fancy cars and learn to stay away from anything that family touches.
