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The evidence outside of IHUB is easy to find and omnipresent.
Don't believe anyone ever used the words retail in any posts but feel free to share that link if you can find it.
Toxic convertible note lenders never lose. No matter what the PPS, they make themselves whole. Much different than promoting that John Fife is a retail investor. That’s what’s being represented and I find it disingenuous at best.
What do you think toxic debt is lmfao. They give money to companies to buy shares hence the filing.
They certainly don't give money for nothing in exchange. That would be called a donation if they did and loan sharks are not in that type of business.
Just like the $55K loan from EMA that turns into $1.8M on March 27th lol. Now that's a loan shark.
I don't normally pee on other peeps parades, but this one has the most obvious HUGE RED FLAGS, on any ticker I've ever seen. I do however, think it is just a doomed pipe dream ticker, not an outright scam (at least not yet). This is a $2.5 Billion project, and they are having legal issues already over only $20 mil? Jeeze, the Bonds on the construction will be in the $100's of mills. Trouble raising $20 mil? Oh my gosh, DEEP trouble already! $20 mil to start construction, is a litteral "Mere Drop in the Bucket". Like trying to build a $5 mi. dollar house with a $100 buck deposit to get construction started. Just can't see it happening.
I found it humorous that John Fife was being heavily promoted as having just BOUGHT a bunch of shares. What a joke. The shares were issued via a toxic, death spiral convertible debenture.
Only spent about an hr on DD, but after 30 min, I realized this co/ticker is a "NO BRAINER, STEER CLEAR, FOOLS ERREND" ticker. My Reasons:
1:YA involvement (never seen a ticker YA was involved with survive past YA & ALL had major legal battles)
2:John Fife (Toxic Financer) will be converting & dumping soon.
3:Former business partners trying to back out?
4: Unless they get serious LEGITIMATE, NON-TOXIC financing (and soon), trips & major dilution coming. They are in DEEP financial doo-doo.
Maybe, I'm wrong, but I see this as a sure fire loser! GLTA to any who see otherwise. Will be watching to see if I am wrong.
OMAG S/S alone a showstopper....let's not talk about the other aspects of this DD picture!
50M A/S and under a buck? C'mon man! I'm BUYING
Looks like the Fife ownership is via a toxic convertible note.
Look at the chart man, it’s bottomed out, pump hasn’t even occurred yet
Is OMAG a good pump and dump to join or is it too late?
$OMAG. And PEOPLE sending gloom and doom FAIL TO MENTION that this project is only being conducted by one of Omagines subsidiaries and that THEY HAVE OTHER PROJECTS.
"In addition to the Omagine Project in Oman, we have been holding serious discussions with Omani government officials regarding other projects in Oman and we have held initial discussions with government officials and business people in the MENA region about similar projects
and other business opportunities therein. Company management, which has strong existing relationships with many businessmen and various Government officials in the region believes that opportunities will develop for the Company."
$OMAG in OMAN NEWS! More projects we ignore and naysayers fail to mention https://t.co/aOZnzr9K7l
2
If these guys can strike such a MASSIVE DEAL with the government and the SULTAN trust me they have other high profile individuals they are rubbing shoulders with. I mean this is just common sense. Or isn't it? Not looking for the $3 where OMAG once traded but 4 cents with a 50 million A\S? IS A JOKE!!!!
BRINGING EYES TO OMAG will not be unknown for long!!!!
EYES ARE ON OMAG NOW.
THROW OUT THE PAST folks!
Omag 2018 will make some serious NOISE soon.
glta.
Game on.
Sorry once he Sid going to trips soon ALL CREDIBILITY LOST. Now he knows the wishes of the Sultan because the Sultan told him. But Damn last I checked the SULTAN STILL OWNS 25% OF THE COMPANY!!! Or doesn't he? I believe my DD way more than his. I also believe Forbes knows more than him also. ONLY 50 MILLION A\S. $718 MILLION land. Sorry. Now goodbye. We are ok. "GOING TO TRIPS SOON!!!" LMFAOOO.
This article by Forbes was less than 2 months ago. I trust them more than an OPINION.
https://t.co/GNEyi2QNfb????????? $20 stock after construction complete. #
I posted the link here and told you guys go to their investor relations site Agoracom to see complete details . CCC is no more with Omagine and RCA ie Sultan of Oman also no more interested they not paid 20 mil $ they supposed to pay and now not replying Omagine s mails too.
Guys my intention is clear I am with this project since beginning and know all details . Don’t want to tell you more also . We lost so much of money with this one and had big dreams that’s why I didn’t sell my 250,000 shares when the share price was $ 3 we were expecting to sell Atleast for 30 $ and we invested in warrants too .
So if you guys want to trade shares it’s up to u guys .
Don’t put your hard earned money in to this dead project.
Good luck
God I hope not as everyone would be way underwater at .0045. Lol
Sad thing is the next note due March 27th is for $1.8M per the last 8K which will definitely send this to .0045 and lower.
Company needs to wake up and let investors know what's going on and what they plan to do about it. Silence is deafening!
looks like they are clearing the .0045
No worries! It's all good. It is what it is right now but the future may hold gold if the development goes thru.
Was talking about the form they needed to raise the AS, didnt read the 8K, sorry
Huh?
OTC Markets has the float listed of over 14M which didn't include the new 2.3M shares and the last 8K stated the co has to raise the AS.
Let's keep it real!
OMAG FACTS FACTS FACTS!! My fellow traders Just PLEASE DO SIMPLE DD. I'm laugjing my butt off. Do you see the bids laced 4 ticks above price with a bid on EVERY LEVEL? Current price .0386, bids at49 04 041 042 ...but going to trips soon yup. OMAG IS NO LONGER an OTCQB stock, OMAN is no longer on the map and the Sultan doesn't exist yeah yeah that's it. 50 million A\S but trips soon yeah yeah the Sultan told me. The contract is OVER yup its what is being yelled here. It ended a long time ago!!! The sun is blue!!PLEASE FELLAS DO YOUR OWN DD!!! No need to ever listen to OPINIONS.
READ THE ARTICLE BELOW. READ THE DATE IT WAS POSTED. I guess FORBES is a scam too. Yeah FORBES KNOWS NOTHING, FORBES IS A PUMP AND DUMP!!!! LMFAOOOOOOO
OMAG IS A$20 STOCK ONCE CONSTRUCTION is complete. And a 60 cents stock on air with just 30 additional traders imo.
https://www.forbesmiddleeast.com/en/oman-turns-to-tourism-to-revive-its-property-market/
You don’t know that at all. Just an assumption
It would make it 16.3M float which is still low. Yes a PRE14C will come out to raise the AS of course.
$OMAG TRIPS SOON??? Such a claim made and expects traders who understand the OTC to believe ANY analysis they present? WOW I HAVE HEARD THE LONGEST REACH KNOWN TO MAN. OMAG ONLY HAS 50 million A\S. Can you please name the magical OTC stock you have seen with 50 million A\S THAT IS TRADING IN THE TRIPS? Actually can you tell me one trading at 2 cents? Actually let me make it even easier. One with 100 million A\S trading in the trips. Now MAKE THAT STOCK AN OTCQB too. I'll wait. WOW CREDIBILITY thrown WAY OUT THE WINDOW. WAYYYY OUT. We are good here. "Trips" LMFAOOOOOOOOOOOOO! OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG OMAG
OMAG
$OMAG bids being jumped silver here we come
$OMAG 50 million A\S. 11 MILLY float if counting 2.3 million share buy in the filing that came out yesterday!
$OMAG just found this. Possiblity of great gains. Looking forward to seeing a green day.
Yes it WAS not a pump and dump but now project is dead so whatever hype people creating is now to dump the shares to innocent people . All the notes are maturing now
OMAG so glad to hear that you had been a shareholder since when 2007 you said and it wasn't a pump and dump for the 10 years you held but is now....ok. Oh I'm glad you got out at 60 cents too. Its not at 60 cents now though but if its on its way back imo.
OMAG OMAG OMAG OMAG OMAG OMAG
OMAG I'm glad pro people are all giving their interpretation of how THEY read it. Its nice and all and the 2.3 million shares supposedley about to be dumped well I think those were dumped on February 22nd, 23rd and 26th. If there was ever a time as you can see from the historical price action and as you can see nothing catastrophic occurred there. CLICK BELOW
https://finance.yahoo.com/quote/OMAG/history?p=OMAG
NO ONE HETE KNOWS EXACTLY WHAT IS GOING ON PERIOD. Do you understand the power the Sultan has on the country, not only that THE GOVERNMENT HAS HANDS IN THE POT. All these stories and fuzzy evaluations these new scientists are spewing is MEANINGLESS. I know the FACTS THAT OMAG HAS ONLY 50 MILLION A\S.... Let A take EVERRRRRRRRY THING ELSE OUT. 50 MILLION A\S. The fortune telling is cool but I don't do fortune telling. Yes all the fear was already factored in by the time it fell from 71cents to 25 cents just last year. We are no longer at 71 cents yes. THE PROBABILITY of OMAG breaking above its current price FARRRRRRRR OUTWEIGHS that of it going the opposite. NO SHARES LEFT we are eating them ALLLLLLLLLLLLLL. Keep listening to the fortune telling folks. As we eat all of these up. 2.3 million shares is nothing we are going to destroy 11 million shares in NO time. Yes I said. WE.
OMAG OMAG OMAG OMAG OMAG OMAG.
$OMAG about to explode It's not everyday that you can find REAL companies with BILLION DOLLAR CONTRACTS and incredibly favorable share structure.......throw in the 13g filed on 3/5 (yesterday).........A RUN IS COMING!
First leg starts tomorrow morning at the bell!!
My posts are my interpretations of how I read the filings.... With that being said, I'm confident in my opinion... Take it how you want to...
This one is 35,000 feet in the air and just lost both engines.... Someone better figure out a way to keep this puppy flying:)
Good luck!
Agree!
TIGHT SS + LOW FLOAT = PARABOLIC RUN COMING!
$OMAG - SUPER unkown low-float gem! The SS is microscopic! Party is just getting started over here
OMAG on the move! This brand new 13g filing is about the blow the LID off the OTC! When John Fife shows up, stocks usually go parabolic shortly after. #LOADING!!
OMAG PPS already low.
Too much POTENTIAL to pass up.
glty.
Notorious penny stock funder...Big Red Flag.
"...Who is John Fife? ..."
Moral of the story is....
The company better release some sort of news to pump in some buying volume or this is going sub penny really really soon.
This is of course assuming that they having arranged some sort of financing behind the scenes that we the public aren't aware of...
On watch at this point... This won't trade sideways from here that's 1 thing I can guarantee....
Lamen's terms- he is the guy who will be dumping approx. 2.3 million shares into the market.... Without knowing what 60% of the WVAP of the 3 lowest Trading days over the last 20 day period is, I don't know what price they converted those shares.... Let's assume they got those shares at .02 a piece... Well they are owed $185,000 so 2.3 million shares at .02 a pop only equals 46k... So once they drive down the price and flush those shares, they will convert again... Rinse and repeat....
Answer:
* Reporting person John M. Fife is the sole member of reporting person St. George and the president and sole shareholder of Fife Trading, Inc. St. George has rights to convert a Promissory Note into shares of the Issuer’s common stock which, except for a contractual 9.99% cap on the amount of outstanding shares that St. George may own, would exceed the cap. Thus, the number of shares of the Issuer’s common stock beneficially owned by St. George as of the date of this filing was 2,306,999 shares, which is 9.99% of the Issuer's 23,093,084 shares that were outstanding as of November 13, 2017 (as reported in the Issuer’s Form 10-Q, filed November 20, 201
Ummm that filing yesterday was NOT informing us that someone bought shares... That was informing us that someone had been issued shares and due to the fact it was such a significant portion of the companies outstanding share count, a filing was required.... Read the filings... As it stands now, this company is in a world of hurt if they can't line up some financing ASAP... IMO, Proxy statement will be coming soon to authorize the increase in authorized shares to a large amount in order to pay off they toxic debt.... Not bashing at all, simply laying out what is black and white in the filings...
OK Guys sell ur home and invest in OMAG . Good luck ??
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$2.5B Real Estate Development Project in
Oman with the Government to Begin any
day now per the Ministry of Tourism and will be
finished by 2024 once the $20M initial payment is
made to begin construction!
http://www.omagine.com
Omagine, Inc.
Empire State Building
350 Fifth Avenue, Suite 1103
New York, NY 10118
Tel: 212-563-4141
800-535-2532
Fax: 212-563-3355
info@omagine.com
https://www.youtube.com/watch?v=ipGz1tfnTiE
http://omagine.com/media/Jol_Omagine_480p.flv
The company is headquartered in New York City and has a subsidiary in Muscat, Oman. Depending upon unfolding events, the Company intends to open branch offices in Beirut, Lebanon and in Dubai, the United Arab Emirates during 2018.
We are a publicly traded Delaware, USA corporation. Our stock symbol is OMAG.
We select distinctive locations, mostly in the Middle East and North Africa (the “MENA Region”), which we design and develop into unique tourism destinations that have a “high culture” flavor and a “pop culture” texture. The MENA Region is one of the fastest growing tourism destinations in the world and governments there are diversifying their economies with tourism projects that create local employment.
The Company is focused on MENA Region entertainment, hospitality and real-estate development opportunities because we believe the enormous financial resources in the MENA Region combined with the governmental strategic vision presents superb development opportunities.
In addition to the Omagine Project in Oman, we have been holding serious discussions with Omani government officials regarding other projects in Oman and we have held initial discussions with government officials and business people in the MENA region about similar projects and other business opportunities therein. Company management, which has strong existing relationships with many businessmen and various Government officials in the region believes that opportunities will develop for the Company.
Oman is a wealthy, politically stable, forward & outward looking country in the southern Gulf region that has enormous economic and geographic assets. With its mountains, waterfalls, deserts, extensive coastlines and 6,000 year old cultural and maritime history, it provides unique tourism opportunities in the MENA Region.
Our destination properties are upscale, uplifting and uproariously entertaining.
Our projects always include traditionally designed residential and commercial components but the tourism components are thematically imbued with culturally aware and scientifically accurate entertainment experiences. All of our developments are historically faithful to their surroundings. The tourism elements tend to emphasize the great art, music, culture, science and philosophy of the world – the Great Ideas - while simultaneously being hip, stylish, trendy and very 21st century.
We have a family-oriented design and development bias which we employ to make our properties tell true and entertaining stories about their surroundings and the world. Our developments seamlessly integrate entertainment with art, culture, science and history.
Our aim is to generate exceptional value for our shareholders and to change the world into a more peaceful, prosperous, egalitarian and friendly place.
The Omagine Project will be an integration of cultural, heritage, educational, entertainment and residential components, including: a high culture theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk, an open air amphitheater and stage; open space green areas; a canal and an enclosed harbor and marina area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and approximately two thousand residences to be developed for sale.
The company's internal financial model presently forecasts significant net positive cash flows for Omagine LLC over the seven year period subsequent to the signing of the Development Agreement and a net present value of the Omagine Project of approximately $1.55 billion dollars. The Company intends to continually update this model at regular intervals as new facts and information become vailable, as the development program and design process unfolds and as market conditions require.
From the last 10Q
INVENTORY AND PROPERTY
The Company’s consolidated financial statements for the nine months ended September 30, 2017 reflect $718,614,000 of land under development which the Company has allocated to inventory ($490,813,363) and property ($227,800,637). This $718,614,000 of land under development was purchased by LLC on July 2, 2015 pursuant to the terms of the Shareholder Agreement whereby an LLC shareholder agreed to transfer the Land Rights over one million square meters of beachfront land to LLC in exchange for the issuance to such shareholder of 663,750 Omagine LLC shares (the “LLC Shares”). Since the Land Rights represented a non-cash payment for the LLC Shares, it was necessary to value the Land Rights.
Three expert real estate valuation companies were engaged by LLC to independently value the Land Rights in accordance with the professional standards specified by the Royal Institution of Chartered Surveyors (“RICS”) and International Financial Reporting Standards (“IFRS”). The average of the three Land Rights valuations was 276,666,667 Omani Rials ($718,614,000).
LLC engaged the services of PricewaterhouseCoopers LLP (“PwC”) as its IFRS accounting consultant to definitively determine the correct method of recording the $718,614,000 average value of its Land Rights in its IFRS compliant financial statements. After receiving PwC’s written opinion, LLC then consulted with its independent auditor, Deloitte & Touche (M.E.) & Co. LLC (“Deloitte”) with respect to the matter and received Deloitte’s written opinion agreeing with the PwC opinion. Both PwC and Deloitte independently concluded that the Land Rights should be recorded as capital, work-in-process (inventory) and land on LLC’s financial statements. With respect to the Company’s consolidated financial statements, OMAG’s independent auditor in the U.S. has likewise concurred that, pursuant to US GAAP, the Land Rights should also be recorded as capital, inventory and land.
In determining the allocations to inventory and to land, LLC followed the advice of Deloitte by computing the percentage (x) calculated by dividing (y) the area of the land LLC definitively knew it intended to sell, by (z) the total area of land constituting the Omagine Site, and then multiplying that percentage (x) by $718,614,000 to get the correct number (N) for inventory. The correct number for land was then calculated by subtracting N from $718,614,000. Using its detailed internal financial model, management calculated (x) to be equal to 68.3%, thereby making the inventory number $490,813,363 and the land number $227,800,637. In its consolidated financial statements therefore, the Company has divided the Land Rights between land under development which is held for sale (inventory) and land under development which is held for investment (PP&E). These percentage allocations may be modified over time as the more precise land uses become apparent during and after the master planning and construction processes.
As more fully described in Note 1 and in Note 11 (See: the “Omagine LLC Shareholder Agreement” section of Note 11), financing for the Omagine Project has not yet been secured. If such financing is not obtained, LLC may not be able to complete the Omagine Project and may not be able to recover the $718,614,000 value of the land under development described above.
Omagine, Inc. has today filed with the SEC its quarterly report on Form 10-Q for the period ended September 30, 2017 (the “10-Q Report”).
Below are certain excerpts from the 10-Q Report. The excerpts do not purport to be or represent the full filing. Please use the following link to view the complete text of the 10-Q Report:
https://www.sec.gov/Archives/edgar/data/820600/000121390017012389/f10q0917_omagineinc.htm
Excerpts from the 10-Q Report:
Summary
The development of the Omagine Project has been delayed. We never expected that a $5 Billion company like CCC would default on their investment obligation – but they did. CCC has now been removed as an LLC shareholder and is being replaced by a new investor. The failure to execute the CCC-Contract by July 1, 2016 did not relieve RCA of its continuing obligation under the Shareholder Agreement to make its approximately $20 million Deferred Investment into LLC. This $20 million cash Deferred Investment from RCA was due to be paid to LLC on July 2, 2016 and is now past-due (the “Past-Due RCA Investment”).
We have a written Investment Agreement from the local Omani investor mentioned below who has passed away and which investment we do not now expect to happen. We have a verbal commitment from a recently formed investment fund for MENA Region real-estate transactions (the “MENA-Venture Fund”) organized by the Kosovar managers of a European fund with which we have been dealing. We have a non-legally binding November 2017 signed letter of intent from a Southeast Asian-based real-estate investment group which is active in Singapore and Thailand and is seeking to expand in the MENA Region (the “Singapore Developer”). LLC is presently in final discussions with the MENA-Venture Fund and is in continuing discussions with the Singapore Developer. In addition RCA and OMAG are also in continuing discussions with a Dubai based developer which was previously active in Oman and well known to RCA (the “Dubai Developer”). Omagine LLC hopes and intends to close the most advantageous deal it deems possible with one or more of these potential investors and/or co-developers or with some other prospective investor with which the Company is in contact.
During the second and third quarter of 2017 and continuing up to the date hereof multifaceted discussions and correspondence between and among management, MOT and RCA occurred with respect to, among other things, the Past-Due RCA Investment which is now an almost 18 month past due obligation of RCA to invest its $20 million equity investment into LLC (which was due and payable to LLC in July 2016), the status of the possible new investors to replace CCC, the timelines for completion of the Omagine Project and the possibility that the DA may be amended, extended, replaced or terminated by MOT. These complex discussions continue as of the date hereof and involve at least two Omani government ministries as well as other Oman and U.S. governmental entities and authorities and more recently now, probably Sultan Qaboos, the ruler of Oman as well. The outcome of these multifaceted discussions is not yet clear or concluded but in all such similar prior events - of which there were a few - MOT has granted the reasonable requests of the Company for the time extensions required to perform certain tasks such as the closing of either the $20 Million Past-Due RCA Investment and/or a new investor to replace CCC. Management understands from the RCA representative that RCA and MOT are in contact and correspondence with respect to the Omagine Project and its development timelines, the DA, the UA, the $20 Million Past-Due RCA Investment, potential new investors and other matters and that RCA (which apparently is a continued strong supporter of the Omagine Project and of OMAG) is also in contact with His Majesty Sultan Qaboos regarding the Omagine Project’s timelines, developers, the $20 Million Past-Due RCA Investment, potential new investors and possible adjustments to any of the foregoing. As would be expected, management is not privy to the exact nature of these hi-level government discussions but LLC management is scheduled to meet with the RCA representative sometime before November 24th to be briefed on such ministerial and governmental discussions as are relevant to the Company and the Omagine Project.
The OMAG Common Stock is, and always has been, a proxy for the performance of LLC and the project delays to date have put downward pressure on the OMAG Common Stock. LLC can begin the masterplanning and development of the Omagine Project when and if RCA pays its $20 million Past-Due RCA Investment obligation, or when and if an investment transaction with one of LLC’s present investment prospects closes (which has not happened yet although we anticipate – but cannot guarantee - that it will occur soon). LLC management is presently in continuing intense discussions with:
Notwithstanding the foregoing, shareholders and investors are cautioned that until an equity investment transaction as generally described above actually closes LLC will not have the funding sufficient to begin design, masterplanning and initial site work on the Omagine Project and no assurance can be given at this time that any such investment transaction will be finally consummated.
_______________________
Management presently estimates that the total net positive cash flow from the development of the Omagine Project will be approximately $3 billion and the net present value of that cash flow is approximately $1.6 billion. A present estimate therefore of the portion of that projected cash flow allocable to OMAG would be in excess of $1 billion USD assuming an OMAG ownership percentage of LLC of between 60% to 75%.
Approximately $900 million to $1 billion USD would therefore be the expected damages to OMAG and the expected claim amount by OMAG in any potential lawsuit in the event of any untoward circumstances (which no one presently expects to occur) arising from LLC’s not receiving for any reason, its required $20 Million Past-Due RCA Investment to begin development of the Omagine Project as a result of RCA’s failure to fulfill its legally binding investment obligation pursuant to the Shareholder Agreement.
The financial architecture of real estate projects generally requires that the developer (in our case, LLC) finance and pay for all organizational costs (legal, accounting, administrative, etc.), concept design, land acquisition (i.e. purchasing the land for the project), initial feasibility and market studies, masterplanning, detailed design, financial advisory fees and/or other engineering & development consultancy costs (collectively, the “Soft Costs”). The Soft Costs are all financed from the developer’s (in our case LLC’s) own cash resources provided by its shareholders (in our case OMAG, RCA and CCC) and this is the reason that the receipt by LLC of the $20 Million Past-Due RCA Investment is so crucial to LLC’s success.
One can readily see therefore the significant borrowing power advantage and financial leverage afforded to LLC by OMAG’s negotiating and arranging for the aforementioned $720 million of Land Rights to be added to LLC’s shareholder equity. Only after the developer (LLC) completes the land acquisition, the necessary engineering & development consultancy studies and the project masterplanning (all of which are Soft Cost tasks to be paid for by LLC), can LLC approach banks to arrange the debt facilities needed to finance the Hard Costs of construction. In the case of the Omagine Project, management estimates that such Soft Cost expenses will be approximately $25 million USD.
We are no longer relying on the conclusion of the estate settlement mentioned above and we are in final discussions with the MENA-Venture Fund with whom we have been holding discussions in parallel. We are also in an advanced state of discussions with the Singapore Developer and the Dubai Developer. Although we had expected to close an investment by now, that has not yet happened and we continue to be hopeful that such a financial investment with the MENA-Venture Fund can be closed by the end of November or early December 2017 and/or that a co-development transaction with either the Singapore Developer or the Dubai Developer can be arranged in early 2018 or before. Discussions continue with the MENA-Venture Fund and separately with the Singapore Developer who executed a Letter of Intent with LLC in November 2017. Separate discussions are also ongoing with RCA for the payment by RCA of the $20 Million Past-Due RCA Investment obligation.
LLC will not have the approximately $20 million of funding sufficient to begin the serious design, masterplanning and initial site activities on the Omagine Project until RCA pays LLC its $20 million equity investment as required by the Shareholder Agreement and/or until we close a transaction with a replacement investor for CCC. As mentioned above, the Soft Costs are typically paid for by the developer (LLC) out of equity as opposed to the much greater project finance costs which are typically paid for by the developer (LLC) via bank loans arranged by the developer. Management has also been conducting parallel project finance discussions with a bank and we expect a successful conclusion to that discussion to occur soon after RCA pays LLC the $20 Million Past-Due RCA Investment as required by the Shareholder Agreement or we close an equity investment with the MENA-Venture Fund, the Singapore Developer or the Dubai Developer.
Notwithstanding the foregoing, shareholders and investors are again cautioned that until an equity investment transaction as generally described above actually closes LLC will not have the funding sufficient to begin design, masterplanning and initial site work on the Omagine Project and no assurance can be given at this time that any such investment transaction will be finally consummated.
_______________________
If the market for our Common Shares is exhibiting low liquidity levels at the time we give YA an Advance Notice (a “Put”) and if YA sells Common Shares into the public market during the five Trading Day Pricing Period subsequent to our Put (as is YA’s customary practice), it is likely that the price of our Common Shares will decline. Any such price decline will immediately increase the number of Common Shares we would otherwise be required absent such price decline to deliver to YA subsequent to the Pricing Period in satisfaction of such Put. This is precisely what happened in early October 2017 when a severe liquidity crisis at the Company compelled OMAG to give YA a put for $100,000 which was ultimately satisfied by the issuance to YA of 940,740 Common Shares.
_______________________
In order to generate the cash needed to sustain the Company’s ongoing operations, OMAG has over the past many years relied on the proceeds from the YA Loans, other loans and from sales of Common Shares made pursuant to the 2014 SEDA and Prior SEDAs and the 2012 rights offering as well as from sales of restricted Common Shares and notes made pursuant to private placements. Management is hopeful that the Warrants will provide a future source of additional financing but it is not possible to predict if any of our Warrants will ever be exercised. Company management has continually pressed RCA during 2017 to pay the $20 Million Past-Due RCA Investment to LLC which is long overdue. As of the date hereof RCA has not yet done so. In spite of their present obligation to make such payment, RCA has indicated that they would do so when the new investor to replace CCC is secured. In order to maintain both OMAG and LLC in existence, OMAG took on substantially more bridge financing debt during 2017 in order to plug the financing gap caused by RCA’s lack of payment of its obligations. Much of this bridge financing debt carries onerous repayment terms and highly dilutive conversion features. The Company presently anticipates it will be able to repay this bridge financing debt in cash (and avoid any dilutive conversions) only if we are able to close all or a portion of the anticipated $20 million investment with the MENA-Venture Fund by no later than mid-December 2017 or if RCA pays the $20 Million Past-Due RCA Investment by such date (which seems unlikely). If RCA would pay such $20 Million Past-Due RCA Investment as they are obligated to then this bridge financing debt issue – and all other issues preventing the start of the project development – would be instantly resolved.
_______________________
The failure to receive funds from RCA or the MENA-Venture Fund as indicated above or the failure to arrange further bridge financing as necessary to sustain operations until such funds are received will have a materially significant adverse effect on the Company’s ability to continue operations.
Regards,
AGORACOM
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