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I apologize if my recent posts are 'old news'. I'm just trying to figure out what in heck is going on w/ Michelex. Michelex' management has never provided guidance related to debts that are listed with the Utah Department of Commerce, especially those related to AJW/NIR and YA Capital/Cornell. I know that Tom Gramuglia had entered into an agreement with Cornell Capital but to my knowledge he never accessed funds that were available. Thus, I am not sure why YA Global is listed as a creditor with the Utah Dept. of Commerce.
Per the SB-2 filing:
From Michelex’ DRAFT FINAL AUDIT REPORT OF 12-31-2010, it appears that the liability listed for the Convertible Notes Past Due (AJW/NIR?) is listed as $1,105,800.
There is also a liability in the amount of $10,500,000 listed as “Due to Related Party”. The note associated with that debt reads that it is non-interest bearing and due on demand. Is this liability related to the acquisition of United Mortgage Bankers (i.e., Saleem)? From Michelex’ press release of July 1, 2010 (yes, the typo error of ‘Bakers’ instead of ‘Bankers’ is in the release):
I am not a lawyer, but it appears that the ‘Convertible Notes Payable – Past Due” that are referenced in Michelex’ DRAFT FINAL AUDIT REPORT OF 12-31-2010 is AJW PARTNERS, LLC.
http://michelex.com/UploadedFiles/DraftofFinalAuditReport.pdf
From Michelex’ Form SB-2 (page 19) filed with the SEC on 12/4/2006
Thanks...I forgot about that. There is not any mention of convertibility, and hopefully that is the case, but it would be nice if the question of convertibility would be specifically addressed. Of course, that would require management to communicate with shareholders...
I'm sure that no one will be surprised to hear that Michelex' management has not provided any guidance as to the status of the claims that I just posted.
An aside, and JMHO, but transparency is crucial when investing in pinkies. Pinkies that are transparent stand out from the rest of the crowd. Michelex' management has had ample time to provide information regarding share structure, debt, strategic plans, etc. They have not done so. The performance of management has been pathetic and they have wasted a year of valuable time. If management had been doing what they should have been doing over the past year, Michelex could be a company that deserves investors' attention based upon its having a good strategic plan (assuming they have one, of course) coupled with being a transparent company that treats shareholders as partners rather than as a nuisance. Instead, Michelex is company with a great big "CAUTION" signal appearing on its OTC Markets page and a company that is nearing implosion. It didn't have to be this way. I don't believe that it's too late for Michelex to turn this around, but management better change their approach asap.
IMHO, announcing that part of the ITA contract has been fulfilled or shipped won't cut it. Sure, that will be welcome news, but in and of itself, it is almost meaningless given the rumors of internal infighting that has required Kakani to look for financing from sources other than Michelex; lack of a clear vision for Michelex' success and concrete plans that will enable that vision to be realized; secrecy regarding share structure and debt load and the fact that management refuses to communicate with shareholders.
Questions:
1) How many of those shares were printed by Tom before the RM and how many were printed by the new board after the RM?
2) My guess, and this is only a guess, is that some/most of those shares went to creditors, including AJW. How many of those shares were sold between now and then? I have no idea.
3) As I have noted many times, there are 4 creditors listed on the Utah Department of Commerce's Uniform Commercial Code Search page. What, if anything, is still owed to AJW and YA Global Capital? Do they still have possession of shares? Are they owed additional shares?
5) What are the terms/conditions of the 10,000 preferred shares? Do they only provide voting rights or do they have a conversion feature? I've seen conversion features that would make 600MM shares seem like small potatoes.
Anyone investing in pennies should be familiar with Corey Ribotsky and the NIR Group hedgefund and also with Cornell Capital. AJW is one of the funds of NIR Group. Do a google search and/or see here for more information:
IHub NIR page
Cornell Capital is the predecessor of YA Global Investments. For more information:
IHub page
Hedge Fund blog
Gramuglia filed two separate Form D's w/ the SEC in 2007 when he sold $500K worth of 'Units of 10% Convertible Notes and shares of common stock".
From the SB-2 filed 12/04/06 there were 105MM shares of common stock; I'm not sure if that includes approximately 37MM shares eligible for resale that were potentially held by AJW (NIR/Ribotsky):
I don't know what happened between 2006 and 2010 that resulted in the OS being 1B. Per the IBOX:
18% would be 180MM shares held by officers. Typically, those shares are restricted for one year, though it can be longer. The 10,000 preferred shares is the white elephant in the room. Can those shares be converted into common shares? If so, at what level of conversion (1:1 or 1:whatever?). Yes, the AS is listed as 1B and there are already 1B shares issued. However, the board can authorize that the AS be bumped up and then the preferred shares could theoretically be converted. These types of shenanigans happen all too often with pinksheet stocks. That is why transparency (e.g., an un-gagged TA and regular filing of forms via EDGAR) is critical.
FWIW, I heard that as part of the RM that Tom Gramuglia had to give up about 1/2 of his shares but that he would still own 25% of the company after doing so. However, I can not verify the veracity of that rumor.
Thanks....I don't think they filed a Reg D, did they?
I was curious if it was always blank. Probably ...
FWIW.....using beta Ihub android app...like it so far....
Believe me, nothing would make me happier than to be able to sing the praises of Michelex' management. I have a fair amount of shares (approx. 6 million) and would love to sell them at a much higher price at some point in time (preferably w/in 2 years). I am not a basher, I am a shareholder who expresses my opinions.
On the PPC website under the 'About Us' tab is a link for 'Management' which brings up a blank page. Has that always been the case, or was Kakani listed in the past?
If they ever get around to updating the corporate website, they need to add a link for 'Management'. Actually, make that 'Mis-Management'. The performance of the company's executives, or at least some of them, has been pathetic.
It's obvious that Michelex' management is 'dysfunctional'. Rumor has it that Saleem is the problem; whether he truly is the problem or not, as the CEO he is ultimately responsible.
Someone recently mentioned that they had contacted the SEC regarding Michelex, was that you? If so, what did you request that the SEC look into?
FYI, though I have publicly lambasted Michelex' management for their ineptitude and dereliction of duty, I have NOT contacted the SEC in regards to Michelex.
I know I sound like a broken record, but Michelex' management has been inept and derelict in their basic duties.
Does anyone know if Michelex' management understands what is potentially at stake based upon their complete dereliction of duty?
Somewhat surprised that no one has tried to grab .0013 shares. W/out news, it looks like most people won't get serious about picking up additional shares unless they are trip zero's. Can't blame them...
Agreed! However, if Michelex is the real deal, it will take at least two years to get ready for a move to an exchange. Obviously, they've got a long way to go. (e.g., they are basically at the bottom of the Pink ratings with a 'CAUTION' label). As we all know, Michelex' management has been inept and derelict in their duties.
For Pinks in general, there is hope that w/in the next few years, SARB-OX will either be repealed or drastically re-worked, and if that is the case, it will be much easier, in terms of expense, for quality pink-sheet companies to move to the OTCBB or AMEX/NYSE. In regards to Michelex, well, it would be nice if they could at least get the 'Caution' sign lifted from their Pink status fairly soon.
It's crazy...you would think they'd be smart enough to realize that they can make a lot more money if they maximize the long-term share price by being a transparent and, of course, profitable company. Hopefully, they'll figure that out w/in the next year or two.
PS...There's no reason they can't start doing the right things today!
Hope you are correct. Would be nice if they could build the business up so that they need/have to use the Massena plant and can have it running 'round the clock. That, along w/ transparency, and we are going to make a ton of money off of our investment (assuming they don't screw us via dilution).
Message to mgt: Get your house in order and get your act together!
NP...my guess is that shares can be had in the .0013 - .0015 range...but if no one bumps up the bid, some might go at .0012 before the day is done
Again, IMHO, I don't think release of 'audited' financials does much at this point in time, assuming the numbers don't change much from what we have seen. That information is basically 'old news' and there really wasn't much in terms of revenue. We probably get a bump, but not much of one.
Now, if we get information about some large contracts, that is different. However, Michelex needs to be much more transparent (that won't be too hard) if it wants to build a stable, and higher, share-price base over time. Again, JMHO, and I have no problem if I'm wrong.
Hope you are correct, but IMHO, we don't get anywhere close to that anytime soon. If I'm wrong, it would have to be a momo-run and it would drop as fast as it rose.
Long-term, who knows, but a higher and stable share price depends on share-structure and profits/revenue stream.
I'm getting pretty close to my 'risk tolerance' level also. May not purchase any more unless they are trip zero's, and maybe not even then. It appears that we have a 'dysfunctional' management situation and I personally have no clue as to whether it can be resolved. I hope it can be...
Yes, someone is buying, I'm curious as to who is selling (i.e., where the shares are coming from). I doubt it's the MM's 'making a market' w/ borrowed shares.
You probably can get .0013's if you want them...
I'm curious as to whose selling? I imagine that most 'believers' would not sell at these low prices, but then again, maybe they have another 'hot stock' they want to buy. I doubt it's the MM's 'making a market'.
Seem to be a fair amount of shares available at .0012 - .0014 the last couple of days. Based upon how positive most posters appear to be in regards to Michlelex, at least in the long-run, I'm surprised more of the posters from this board have not been purchasing. Curious if you (i.e., the 'positive posters') are not as positive about Michelex as you seem to be or if you are hoping to pick up triple zero shares.
Heck, drive the price down now so I can get some more 'cheap' shares' Of course, even those cheap shares could become worthless if mgt. doesn't get its act together.
Thought of doing that in the past when I was more actively trading. My hope is that it will be a moot point in a year or two if the capital gains tax is abolished...
Won't you run afoul of the 'Wash' rule sale?
Check w/ Karbo...he was compiling a share count...
No problem. I think we both want the same thing and I think we both realize that, barring extreme circumstances, it is going to take Michelex awhile to reach its potential. I think we also both realize that Michelex could ultimately fail and that how it turns out is beyond our control. Management has to deliver, not us, in order for Michelex to succeed.
Jackolepee,
Here's something I think we both can agree on: Let's hope that Michelex reaches its potential, or at least makes great strides in doing so, w/in two years. Assuming no dilution, if the price is under a penny in two years, neither of us will be jumping for joy.
I hope we both make a ton of money off of Michlex. However, we both know that is not going to occur anytime soon.
Because people are buying at prices they think will be a bargain IF Michelex can deliver on its potential. The interesting question is, 'Who is selling?"
I believe your buys on Friday were at an inflated price. In fact, you basically referenced as much on Friday.
Honestly, I think you might be confusing me w/ someone else. I've never 'freaked' out about the price (at least I don't remember doing so.) The price is where it should be given the performance of mgt.
I like Michelex' potential but I dislike the performance of Michelex' mgt. The 'performance' of the stock's price is a direct reflection of the fact that Michelex has failed to deliver on its potential and the fact that management has been inept in regards to being transparent/forthcoming.