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The acquisition terms and the many companies involved does not make much sense to me. Something in the latest filing that I find interesting...
The Company has obtained documentation from Medina Property Group, Inc. releasing the Company’s obligation on the promissory note dated
March 22, 2010. The Company has recognized the resulting Forgiveness of Debt Income as of June 30, 2012.
The Company entered into the purchase interest of the Chloride Copper Project from Medina Property Group, LLC which resulted in the
Company acquiring the debt and a promissory note dated March 22, 2010 in the amount of $360,000. The note has an interest rate of 8% with
the maturity date of September 22, 2010. The Company is currently in default of the note,
I don't think the company uses E*Trade or TD Ameritrade where most of the shares have come from but who knows. At these prices, it might as well be Santa Clause. Looks like Christmas in August to me.
Agree. Definite negative divergence has formed for the PPS. PPS currently at the top of the channel and the bollies. Hitting a significant resistance point tomorrow. The price has been continually propped up on light volume yet falling on heavy volume. Breakdown appears to be coming soon. First major support I see is around 0.0048.
The "factual data" of which you speak has thus far been nothing more than allegations based on assumption and continuously repeated concern about the downfalls of being a pinksheet company. Everyone here knows that GDSM has challenges ahead and the company's future is speculative. Nobody can make absolute predictions about what is to come but in my opinion, it is the uncertainty and potential that makes GDSM one of a very few companies worth taking a chance with in this market.
Even though GDSM has yet to "hit a home run" with their previous efforts, they continue to try regardless of the difficulties that they face. Furthermore, while trying, they are making every effort to maintain shareholder value within the limited resources available to them. Sometimes, however, some steps back must be taken before progress is made. The intent of those steps back is what shows promise for GDSM.
Whether or not GDSM will succeed is obviously unknown. However, what I am 100% certain of, is that if they do finally "hit a home run", those who saw their potential and gave them a chance will be very wealthy individuals. At the end of the day, interested investors must make that decision for themselves and decide if the risk is worth the potential reward.
Opinion is not DD.
Does every SIRG investor post on I-Hub? Out of all of the investors that hold SIRG and are a member of I-Hub, how many took the survey? What sample of the SIRG investor base did that represent?
Most investors I know on I-Hub do not discuss gains or losses with others.
Then the obvious questions regarding this...
There are also several members of SIRG's BOD who are wealthy enough to fund the Chloride copper mine development by themselves and private investors!
It is as simple as this... If there is a company that is willing to offer SIRG financing that is not toxic, then why does SIRG keep accepting funding that IS toxic? The latest one being from Fogo, Inc. for $200,000 @ 12% interest due in less than 6 months?
How is this along with all of the other notes going to be paid with no revenue? Even using the best estimates the mine won't be in production by then.
Of course they are not in default. The ones that were in default they claim as not legitimate and don't recognize the debt.
The Company believes the promissory note to Brian Hebb dated August 16, 2010, the promissory note to Black Diamond Realty Management
dated August 6, 2010, the promissory note to Brian Hebb dated May 5, 2010 and the promissory note to South Concord Corp dated
September 30, 2011 are not legitimate debt instruments of the Company. The Company has attempted to acquire documented proof of these
obligations but none has been obtained. The Company has contacted the creditors and the Company’s prior Auditors for proper documentation
but none has been provided. The Company has written-off these presumed fictitious debt instruments and has recognized the resulting
Forgiveness of Debt Income as of June 30, 2012.
As of June 30, 2012, SIRG only had 82,988,912 shares left to issue to cover their notes. 148,007,084 shares were issued and suscribed (but not issued) in the first half of this year. The amount due in the next 6 month period is over $600,000. This amount is far more than the amount of notes that were settled with 148 million shares in the first half of the year.
This is a strong indicator that an increase in the A/S will be required.
Here is the math for you. If you need any more help please let me know.
335,620,287 + 21,390,801 = 357,011,088
357,011,088 * 0.05 = 17,850,554
From my post...
As of June 30, 2012 5% would be exactly 17,850,554 shares.
Class A Common stock, $0.001 par value: 440,000,000 shares authorized; 335,620,287 and
206,804,004 issued and outstanding at June 30, 2012 and December 31, 2011, respectively
Common stock subscribed, not issued $.001 par value 21,390,801 and 2,200,000 at June 30, 2012 and
December 31, 2011, respectively
Not so. The shares that are subscribed but not issued have to be included since they are reserved for issuance. Arguing over 700k shares is pointless though. In the end it doesn't matter. No matter if Asher can hold 1 million or 20 million, they are selling as soon as they get them and they are receiving shares often at a much better cost basis that anyone can buy from the open market. Also, Asher is not the only toxic issue here. The notes are getting larger with higher interest and shorter terms. It looks like the "perfect storm" of toxic dilution is coming to a head between now and Feb. 2013. $600,000 is a lot of debt to cover with no revenue.
Another thing to consider... the more shares issued, the amount that anyone can hold at any given time increases as they are added to the O/S count.
Thanks but the filings speak for themselves. All one has to do is make an effort and read. Increasing the OS by 34 million in 3 months is an 11.2% dilution to all shares held. That was only for a few thousand dollars. How much dilution result in covering the $600,000 + notes coming due between now and February?
Straight from the Q2, 2012 filings....
During the quarter ended June 30, 2012 the Company issued Asher Enterprises during a total of 18,278,943 shares of the Company Common
stock. The stock was issued in exchange for the conversion of note payable issued in 2011. The conversions were transacted three (3) times
during the quarter as per terms of the agreement.
Actually the truth looks very promising from where I'm sitting and only hurts those who wouldn't want GDSM and its investors to succeed.
For GDSM and WSRA to host a public meeting to all investors and interested parties speaks volumes for their credibility and progress.
It's on the I-Box just like I said it was yesterday.
You are correct. As of June 30, 2012 5% would be exactly 17,850,554 shares. I always calculate everything as fully diluted (A/S). My mistake.
I'll ask those questions myself if someone doesn't beat me to it. I would imagine though that the majority of those questions will be addressed at the beginning of the meeting with a presentation.
And they could release a pointless fluff PR about the APP transfer. Oh, wait... they just did.
What sort of non-material news is that? A PR about the chill lift, 90 acres or previous LOI would have been better.
Well, they may not have a choice and it would dilute shareholder value.
Given that it was announced to the public, it sounds like it will be a public meeting. The RSVP is for selecting the proper size of location. Of course, the easy way to find out is to RSVP and attend.
I don't need to call Rod. The 10Q also shows how the notes are settled and that is with share issuances. 34+ Million diluted in Q2. How much will it take to settle the $600k+ notes coming due between now and 6 months from now?
Investors aren't likely to issue funding to a company to satisfy previous toxic debt. Debt is not an investment.
Without revenue, how were those notes satisfied?
True. Can't wait for the meeting!
That answers that then. Thanks.
Some notes were paid with issued shares. That's where the increase in the O/S came from. There are still notes of concern and unfortunately they keep getting bigger.
Promissory notes payable dated October 17, 2011 due to Tangiers Investors, LP including accrued interest - $18,750
Promissory notes payable dated January 09, 2012 due to Asher Enterprises including accrued interest - $38,922
Promissory notes payable dated February 16, 2012 due to Grand View Ventures including accrued interest - $200,541
Promissory notes payable dated February 29, 2012 due to Asher Enterprises including accrued interest - $30,802
Promissory notes payable dated May 3, 2012 due to Grand View Ventures Including accrued interest - $136,511
The Company entered into a Promissory Note with Fogo, Inc. on July 31, 2012 in the amount of $200,000. The note has an interest rate of 12%
with the maturity date of January 27, 2013.
They would only have to file if they hold more than 5% at any given time. That currently translates into 22.5 Million shares. So, they could have 20 million shares at a given time and not file at all. Furthermore, they aren't ever going to hold long, they are going to sell as soon as they get them. Asher knows exactly what they need to do to continue to sell shares and never file.
FWIW, 20 millions shares is "tens of millions of shares".
"NOT TRUE" can be claimed a million times but that doesn't change the facts. The stock is being diluted as a result of convertible notes (financing). The loss of shareholder value was 11.2% in Q2 as a result.
I never claimed that the share structure was bad in its current state. Hopefully that won't change. I do find it interesting that the A/S was increased to 200 Million on the Class B common stock.
Good point. Thanks for the suggestion. I-Box updated. Please remind me to remove it when it is back to current status in a few days.
How is this going to be paid in 3 months with no revenue?
The Company entered into a Promissory Note with Grand View Ventures on May 3, 2012 in the amount of $133,000. The note has an interest
rate of 15% with the maturity date of November 1, 2012.
Authorized share count increased for Class B common stock by 190 Million in Q2 of this year. What is the purpose of that? Was that voted on?
Not wrong. Here is the screenshot with a link to Pinksheets.com that shows it.
http://www.otcmarkets.com/stock/sirg/quote
Ask them in the upcoming shareholders meeting. I'm sure that they will be glad to address your concerns.
The toxic financing is clearly shown in the filings. Toxic financing is defined as a loan to the company where the repayment of said loan is harmful to shareholders. In the Q2 filing just released...
Class A Common stock, $0.001 par value: 440,000,000 shares authorized; 335,620,287 and
206,804,004 issued and outstanding at June 30, 2012 and December 31, 2011, respectively
Class A Common stock, $0.001 par value: 440,000,000 shares authorized;
301,191,344 and 206,804,004 issued and outstanding
at March 31, 2012 and December 31, 2011, respectively
Well, they obviously aren't concerned since they are having a public meeting for anyone interested to attend. Would guilty individuals expose themselves to the public like that? Not likely.
No concerns here either.
Fully agree! Excellent news and move for GDSM.
Market Maker - Maxim Group, LLC
http://www.maximgrp.com/
Nice find!