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Now we are seeing additional financing with the soon to be AS increase which has occurred once again in advance of presumably positive news (the 10Q). This is precisely what happened when the 2.5 billion increase last happened which leads me to suspect a similar pattern moving forward. The difference this time is Seamus Lagan has given himself the additional ability to do a RS.
It's really very simple-- Go forward with the AS increase (shares to sell to lenders) & the RS ( PPS increase to attract retail and for lenders to sell into. Ya can't sell Billions of shares into a .0007 SP...I mean ya could, but you'd be at no bid in a second!
Two thoughts;
First, at this point in time, there is no correlation between the price of gold and MXSG. If the company can ever come up with industry accepted provable reserves and/or ability to achieve production then a correlation will develop.
Second, I do think gold will see a mild drop (at the lowest a $1,000/oz) in the short term (3-6 months). However, I think the markets are nearing the end of their current bull run. Too many political and financial headwinds. Our trade war with China will likely result in China devaluing the yuan. If that is done suddenly (ala August 2016) the markets will drop severely.
Additionally there are many cracks in the damn related to financial health. the Fed is raising interest rates along with quantitative tightening into a weakening economy. We're already starting to see housing sale weakening in California. Student loans and sub-prime auto loans also have a day of reckoning coming.
The exact timing is unknown. These things can linger on longer than anyone expects, but when the damn breaks I think it will be fast. At that point gold and silver will quickly reach and exceed 2012 price levels.
I don't think it's a bluff. Is it possible? Perhaps. But based on what I see the increase in AS and RS are going to happen.
The company has outstanding debt obligations that require available stock, if that debt is converted.
The main reason this stock's price hasn't run, like it did the last time shares were maxed out, is because last time it appeared as though an increase in available shares wasn't likely.
This time it appears the increase in available shares is likely and nobody wants to buy before a big dilution begins.
That is why you trade what you know, not message board rumor.
The latest PR has indicated an increase in Available shares and Reverse Split are on the table. A Pre-14C has also been filed.
The board has temporarily given the CEO enough voting power to implement either one or both of these options.
Is it an absolute certainty? No. But right now all the evidence points to yes. If the Available Share increase and/or Reverse Split are a bluff by the CEO, there will still be plenty of time to get in on the action that would likely follow that kind of announcement from the company.
It means the company has issued/sold all of its shares of common stock.
However, it does not mean that all of that stock has made it to the market yet. If sold to the Market Makers (MM) they could still have shares left to sell off.
I sure as heck wouldn't want to leave some $20 million in assets plus $30 million in annual revenue off the table.
Sq foot values of homes are different than those of commercial property values.
I'm not following you. I get that dilution is keeping stock price down, but how is a MM naked short selling keeping price down? At .0007 it doesn't make sense to short.
It very well may have come from Seamus. I don't have a way to verify if it did or didn't. Regardless, that is not an official, third-party verifiable, statement from the company.
If the company decided in September to go through with a R/S, that e-mail would not mean anything in a legal setting. However, if a PR stated there will be no R/S in September and the company then went through with the R/S you may have legal recourse you can take.
As a general rule if it's not filed with/reported to the SEC, the company is not under any obligation (in most cases) to be bound to it.
Thank you for your E-mail there no plans for reverse split new PR with the new update will be up when completed.
Everyone needs to make sure they understand what is on record and what isn't. An "e-mail" from IR (or CEO) to an individual stating there are no plans for a R/S is not on the record (or what I consider to be a fact).
What is on the record is an 8-k asking for the ability to do a R/S, expansion to 10 billion AS or both.
Nothing in today's PR confirms the R/S or expansion of AS is off the table. Until there is a PR that specifically states there will be no R/S or expansion of AS, folks should continue to proceed as if there will be one.
WEST PALM BEACH, Fla., July 26, 2018 (GLOBE NEWSWIRE) -- Rennova Health, Inc. (OTCQB:RNVA) (OTCQB:RNVAW), (“Rennova” or the “Company”), a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers that acquired its second rural hospital in Tennessee on June 1, 2018, returns to “Stock Day” to provide an update on how recent dilution of ownership is not necessarily dilution of value, along with developing plans for future growth.
The interview began with Everett Jolly voicing shareholder concerns on dilution of ownership and asking President and CEO Seamus Lagan about working capital versus growth capital causing dilution and discussing a smaller percentage ownership versus potential increased value. Rennova has recently embarked on buying hospitals raising a need for additional capital to cover the cost of acquisition and to carry the cash need of operations through the change of ownership process.
Mr. Lagan explained that the Company had no option but to raise money to manage the business through the last two difficult years. The ambition is to continue investment in current hospital operations and buy additional hospitals in the same geographic location. The Company believes that delivery on its business plan and current growth momentum will facilitate much cheaper capital in the future as historical risk abates. The fact that the Company was able to secure the capital it did is a vote of confidence by investors in Rennova’s ability to succeed in coming years.
Rennova intends to strengthen its hospital management team in the immediate future to meet the demands of the new business and other opportunities and has recently hired a new CFO with many years’ experience working with rural hospitals. This new knowledge and expertise will be a huge benefit to Rennova in its expansion efforts.
Mr. Jolly asked Mr. Lagan about Rennova’s investment plans, referencing the recently announced new equipment acquisition, a 64-slice CT-scanner in one of the hospitals. Mr. Lagan indicated that this is only one of the investments planned with this being the first. The hospital had an old machine that directly impacted revenue because it did not provide doctors with the more comprehensive information they now require from CT scans. Mr. Lagan further commented that you have to provide the best possible service to beat the competition and that Rennova would continue to consider investments that would add to revenue.
In closing, Mr. Lagan repeated his belief that Rennova will have its second quarter financial statements filed on time.
To hear more about the items included in the Company’s financial report and future plans please follow the link below to hear the full interview.
https://upticknewswire.com/featured-interview-ceo-seamus-lagan-of-rennova-health-inc-otcqb-rnva-6/
Thank you for the explanation. The part I didn't realize was when the R/S occurred that the number of A/S remained the same. I assumed the A/S also shrank proportionately.
Thank you for the clarification on the conversion to common. I must have mixed that up. As for your statements below;
The thing to remember is startups MUST sell stock to raise cash to grow business!!! if there is little or no room in the authorized to sell stock, the company can't grow.
As for which to choose, a reverse split will maintain shareholder value and increase in authorized will delude value. So I expect if either is initiated, it should be a R/S.
I'm seriously confused.
How is it advantageous to do a reverse stock split AND increase in authorized shares at the same time.
Doesn't one defeat the purpose of the other?
It does seem explain why all the debt holders converted to preferred shares - not out of confidence in the company, but fear their shares were going to get diluted by over 300%
Good catch on the disclosure differences from the 10-q and 10-k.
However, I don't think the "top off" two weeks after the debt was paid is as nefarious as you're making it out to be.
It sure looks like the additional "top off" clause was invented after the fact to hide the penalty payment for Mexus paying off the note a week late. Which is why it was not disclosed, as required, in the prior SEC filings.
Mexus did not produce the 8.2 or maybe 8.5 ounces, it was MarMar. The share to be paid to Mexus was only 5%.
Same with the gold in carbon, it was produced by MarMar, not Mexus. But still, 5% of $26K is $1300, where is it?
I don't know what was in the contract...
Our relationship with MarMar is resolved (if PR's are to be believed). Delayed invoicing is not a likely scenario.
Even if it was delayed invoicing, the financials should have shown revenue earned along with an accounts receivable entry somewhere in the financials.
Any entrepreneur taking an ACME course offering info on running a business would know about accounts receivable entries.
MarMar sold the gold and kept the money.
In addition, the company is researching the possibility of funding for the project
We're still in that area where a young mining company is trying to develop a producing mine. Ten years or more for most juniors
It's been two weeks. That precipitate sure is slow to dry.
"Also, General & Administrative Expenses continue to remain high. This year was almost $1,000,000. This continues to be a red flag for me. I think there should be a more detailed accounting of this expense than a single line item."
But nothing weirder than what passes here as "news" in "detailed" opinions 24/7.
A previous poster inquired about news from the VAT.
My response was to simply state that information did not have to be included in this 10-k.
The 10-K only had to officially report what happened from 4/1/2017- 03/03/2018. The company did not have an obligation to report any events after that date. As I stated it did choose to include some information that was after 03/30/2018 - specifically information regarding the termination of the JV contract.
If you want to try and allude that smelting of the product from the VAT has occurred since July 2nd but the company will release a PR when it feels prudent, I call B.S. No way this company with all of it's pumping of "imminent" and "test pour occurred" announcments keeps something like that in its back pocket.
If/when this company produces a single ounce of gold on its own it will be shared in a PR within one week at the most.
10-K really only has to show information from 4/1/2017 - 3/30/2018.
Granted, they did include recent information regarding their termination of the JV relationship.
However, in my opinion, had there been any positive results to report I'm certain the company would have put out a PR and included it in the 10-k.
I didn't see anything too dramatic that we didn't already expect.
Company lost another $3.9 million.
One small surprise - no revenue reported despite the supposed gold sales reported. Not sure if that means MarMar kept those gold sales but I can't think of any other explanation.
One other statement that confused me regarding employees. the report states;
We have no employees at this time in the United States and Mexico. Consultants with specific skills are utilized to assist with various aspects of the requirements of activities such as project evaluation, property management, due diligence, acquisition initiatives, corporate governance and property management. If we complete our planned activation of the operations of the Mexican mining properties, our total workforce will be approximately 20 persons. Mr. Paul D. Thompson is our sole officer and director.
Mexus wasnt responsible for the 8.2oz. That was marmar.
The money wasn't wasted.
This is not how OTC stocks are valued. NASDAQ and Dow stocks typically follow that pricing model, but very few OTC stocks do.
OTC tends to be more speculative and share price is not a reflection of revenue, assets and debts. If anything share price in OTC stocks are more of a barometer of confidence in the company management and potential of the business model.
Now I will grant you, price did not react nearly as negatively as I thought it would when the increase of number of shares was announced.
In other words, there still aren't any verifiable gold sales.
People can jabber on about anything they want, but it's all white noise. Share price won't make a significant move up until it's "TPV'd" that money for gold sales have been deposited into Mexus bank account and reported on the company's financials.
All the bravado from past and present mining "experts" on this board can't change that.
Smelted doesn't necessary mean refined.
"Will the next toxic note be announced in September, October, or later? Who knows, my bet is on September, but one thing for sure....it is inevitable."
Thanks Dino.
Anything regarding a PR in May 2016 about Mexus funding operations or was that one on a need to know basis?
Quote:
"Apparently the market does not have much interest in the "imminent" gold production."
Twofer
Where does this oddball imagine actual Pvt Placed operating funds were coming from since May '16 now Elena's reacquired 100%. Not from some msg bd poster talking down daily the PPS, we managed still to continue our plan for taking millions more even cheaper as Mexus Gold majority owners during a long, long, difficult 2 years. AND 70# being refined right now is from always 100% owned mine 200 mi E at Ures. Market shares do zilch but set the PPS nothing goes into treasury. Or has that been not well thought through as the rest of total daily b.s.
Thanks for your service, 8... and to all other veterans as well.
No disagreement with the JV relationship or entering into the agreement with MarMar. It made sense at the time.
Two main areas where Mexus screwed up in their endeavor with MarMar were;
1. The lack of transparency about helping with the funding (I don't really take issue that they helped, just that is wasn't disclosed.and the lack of transparency)
2. Giving false impressions that production/gold sales was imminent when they clearly were not that close.
Perhaps it was MarMar feeding Mexus a line of B.S. about how close they were to smelting gold but our "expert" Lemas should have been able to sniff it out before the line of B.S. was shared with shareholders.
MarMar may have sold Mexus a bill of goods, but Mexus in turn continued to sell it to shareholders, even when they finally knew better.
It's not the lack of results that is costing Mexus it's their loss of credibility due to a lack of honesty/transparency with shareholders.
Agree with your first point - sole control of Santa Elana is a plus.
Based on lack of results from similar sounding PR's the company has made previously I think it's premature to call the VAT system a success. The precipitate needs to be confirmed as completely smelted and sold before it can be counted as a success.
Sorry, the company has been dishonest about this kind of thing in a similar situation. Hype, speculation and promises have not been followed up with results. The company doesn't get the benefit of the doubt anymore.
Only results will bring up share price.
The 10K will only show activity up to 6/30/18. If it's still in precipitate form that means it hasn't been sold and there is nothing to report.
The most helpful information coming out of this 10-K will be t how much Mexus spent subsidizing MarMar and how much debt Mexus is currently carrying.
Just trying to point out that until it is reported in company filings and verified by an independent 3rd party, anything this company says is - at best - speculative hype.
In the words of George W. Bush
"Fool me once.... shame on you. Fool me... You can't get fooled again."
CABORCA, Mexico, July 02, 2018 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB:MXSG)(“Mexus” or the “Company”) announced that the joint venture with MarMar Holdings has been officially terminated.
Mexus completed its first test of the VAT leaching system and the Merrill Crowe gold recovery plant at the 8 brothers/370 mine project. The successful test produced 70 pounds of precipitate which is currently being dried and prepared for smelting. Results of this first run will be released soon. The material initially mined took longer to leach than expected. Mexus geologist, Cesar Lemas, has identified new material which has been column tested showing a 48 to 72 hour leach time. The company will mine and use this material going forward to accelerate recovery times.
Stop me if you've hear this one before.... Oh wait, we have....
CABORCA, SONORA STATE, MEXICO, May 15th, 2017 (GLOBE NEWSWIRE) — Mexus Gold US (OTCQB: MXSG
(“Mexus” or the “Company”) gave an update on its Santa Elena project located near Caborca, Mexico... There is currently 250 pounds of precipitate in secured storage ready to smelt. This material is the output from the initial leaching of pad 1. Smelting will begin when on site engineers are assured they have the proper flux mix to ensure no gold is being lost within the process. It is expected that smelting will begin in earnest the week of May 15th.