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Yes we covered this the other day old news from 13. Dean has put of 8K's like candy now so I think that will stay old news. The chart also looks like a lot of accumulation and support above .01 so not sure with the converts getting paid off we go much lower. As always we shall see
What changed your statement back in Sept. saying "as soon as the 8k's start coming out paying off the convertible debt, I will buy a sink load"? paraphrasing of course. Just makes one wonder that maybe at one time you guys were long but went short. All the ducks are lining up and events that you guys said would not occur have and yet the same people still bash away. I really don't care but as usual things and people are never who they say they are on these message boards.
Another convertible bites the dust. Keepum comin Dean!
No doubt an ugly sight but thats why we pay some off, get rid of the toxic debt by refinancing it and the rest of the balance sheet under more favorable terms. All Im saying is at todays market cap sure looks like a great risk reward once completed. We shall soon see...
ERF Wireless Begins Repayment and Termination of Convertible Debt
Funds Received From New Non-Convertible Financing Used to Repay Debentures
LEAGUE CITY, TX / ACCESSWIE / November 5, 2014 -- ERF Wireless Inc. (OTCQB: ERFB), a leading provider of enterprise-class wireless and broadband products and services, announced that as of November 3, 2014, it has received the initial funding under a new non-convertible funding program and has begun the repayment and termination of a number of its outstanding convertible debentures.
With the repayment and retirement of the senior lender over 1M in debt has gone away plus the debt that was converted to shares is also gone. Then you have refinancing under much better terms which will save the company money.
Once all the convertibles are gone we should here about the accretive acquisition Dean has been boasting about since April which will also immediately help the bottom line.
At some point as a shareholder you have to be able to see the light or move on.
Bob, your point of view continues to be negative in light of positive developments which you stated would not happen. Thats fine but mine is totally opposite of yours. I think this will be a great turn around story that you should be taking advantage of. Once the converts are all paid off the cheap shares will be gone.
Now thats JMHO
Dean is still batting 1000% on my watch.
All I have been hearing from 2 or 3 on this board for the last 8 weeks or so is "Do you really think anyone would give this scam financing to payoff the converts?" and "Do you really believe Dean is going to finance and payoff the toxic debt when he can just dilute and have shareholders pay for it?"
Not one stood up and said they were wrong.
"Look at the breakdown of the trades, little buys, huge sells... " Bob... You do know that for every seller there is a buyer... right???
Ok, just checking wink wink nudge nudge
That is exactly right Snizzle. Unfortunate for us the SEC waits this long to disclose this OLD info. Goverment at its finest again!
Hopefully as it was with the asset sale, the PR came first and the 8k with the details thereafter. Not sure why we can't get the details in the PR's. If you want more bang for the PR get the details in there.
Agreed.
This is what we have been waiting for! The first convertible listed in the 10Q is Tonaquint which is the largest at $680,406 which I am assuming is now paid. Hopefully now that they have the funding they will all be gone by EOM and dilution ended. Dean still batting %1000 on my watch. IMO M&A begins soon. Bash away shorts and board guardians its all yours again.
"I am not as concerned about the cost per barrel as you are. Once you rely on high speed data, its hard to not have it. (Try using Dial Up now! lol) I think if production decreased, as long as its operating, they need high speed data. "
Apparently Dean agrees with you on this in fact he is still seeing expansion and as he said "Go figure"
One less thing to worry about for the time being
Totally agree with you there Bob. I have said I am not buying another share until I see the financing which I am a bit worried about now with the crash of oil. Growth in the oil and gas field will come to a halt with WTI below $80. I have listened to many analysts talk on this subject and break even for current operations varies from when you started drilling and where your drilling. And yes I am down quite a bit, just hoping the game plan is still on track.
I would have to think the debt holder would be snapping up those bids at .016 if they were issued shares at .01. My point being at this point no shares have been sold below the .014. If that happens then I would agree with you.
Thank you captain obvious. There were 3M shares issued at .014 that we all know are being sold by the debt holders. Whats your point?
Thanks for the response MBD. Oil prices have been a concern of mine but I did see a interview on CNBC with a CEO saying that with the new drilling technologies their using within the past few years, has estabished wells at a break even at around $40PB. New drilling would be slowed if prices go lower but things were no problem for the shales at this point. Offshore seemed to be the immediate concern due to higher production costs.
Anyway, we will see in the next few weeks or so if things are still on track or if we have problems.
MBD, please tell what has made you do the big 360 in just 2 short weeks? I mean your saying was "BE PATIENT". I know things are not moving as some us thought but after reviewing the Pr's I found it was my mis-conception that as soon as the asset sale was complete the convertibles were going to be immediately paid off and dilution stopped. My question is why have the debt holders accelerated the conversions right after the asset sale? Im not drinking any kool-aid as I said Im not buying another share till I see the financing but that doesn't mean Dean is lying or deceiving shareholders regarding the 2014 objectives. Correct me if Im wrong but it sure sounds like someone gave you a "hot tip" on a soon to be announced PR that didn't happen. Doubt that came from Dean himself as he has told me on a few occasions that he could not answer do to the info being non-public.
2 weeks is not being patient.
Here is a reply I got from Dean regarding this issue
On Sep 24, 2014, at 4:45 AM, Dr. H Dean Cubley <hdc@erfwireless.com> wrote:
Gary,
You are correct in that the proceeds from the asset sale of our residential networks was not sufficient by itself to address all of the debt that needs to be retired. We paid off our Senior Debt Holder TCA, who was also converting into stock, so that we could free up our assets to use to obtain additional longer term financing. Once completed this longer term financing will be used to retire the short term debt that is creating the stock pressure and provide additional working capital as well. We have referenced this approach in our previous press releases to some extent.
Dean
Under the terms of said credit facility they may not use the fund to payoff existing debt. That was also talked about during the conference call and is available to read on the transcript. But you knew that didn't you...
Among all the gloom and doom here this beautiful morning, I am not throwing in the towel just yet but Im not buying anymore till I see the financing come through. The payoff of the senior debt holder was less then a month ago and were talking about financing of around $5M so this isn't over the top yet as far as time goes. If nothing happens in the next few weeks well I guess the old guy duped me on what I thought was a very sincere conference call. I believe if your long at this point just hold to see what transpires as we are all under water at this point but thats jmo.
Chill time folks
The question is and has been since the asset sale. How low is he going to convert debt into shares until he refi's the rest?? Im as patient as any long but didnt think Dean would issue shares at .014 and dont know if he's done.
Heres to hoping that's the end of it!
All we need now is the anticipated news that the convertibles are gone and I believe that sideline money moves in.
They don't have anywhere close the cash to payoff the convertibles left from the asset sale. They paid off the senior debt holder with the majority of that cash to free up ERFB assets to use to obtain the financing to not only payoff the convertibles but also refinance the rest of the balance sheet on much more favorable terms. I have clarified this with Dean. We should be close but of course he can't tell me exactly where we are at since that is non-public info.
Some forget when talking about Dean fleecing shareholders and running the company into the ground, that this is personal for him and his family. They have a trust that helps finance operations and he admits to making mistakes but to say the PR's are fabricated fluff is pure bs. I asked the question during the CC regarding him buying more stock and here was answer:
"The answer is yes but I would like to elaborate just a little bit, there seems to be a misconception that I am independently wealthy on a personal basis because of the financing that the Angus Capital Partners, which is a trust that my parent set up back 20 years ago that is a generation skipping trust the beneficiaries are two sons. I am not a beneficiary whatsoever on the trust neither am I benefiting in any way off of it. So that is providing financing to the Company under the Angus line of credit which currently stands as a $12 million line of credit with a balance I believe, Greg, of somewhere in 4.3 million spending at June 30th correct.
Now personally I am at arm’s length with that. I of course am familiar with it being the CEO, but I have no signatory authority. I have no control over that. And my two sons who are in their 40s along with a tax accounting firm are the controllers of that line of credit and because of my CEO position I do keep quite a bit of an arm’s length position with it. So I just earn a salary like everyone else here and yes I do plan to buy more stock but it’ll be coming out of my salary and not from any benefits I’ve received from that trust, because I never will receive any.
You will have to understand a little more about the trust but it is something that benefits this company greatly because it provides a back stop to our financing and that kind of leads into another question here that the stockholder asked. And that was, okay if you got this line of credit why don’t you just go out and pay off these convertible debentures. Well first of all if the line of credit could have been utilized to pay the debentures off it would have a long time ago. It is by its very nature and its provisions it is there as a back stop to the company for operational purposes it is not possible to use it to pay off other debt but begun making a pool upon that for operational purposes and thus on a regular basis the line of credit I think probably contributes to several hundred thousand dollars a quarter, I don’t know the exact numbers. But it is in that range and strictly for operational purposes.
So I wish we could pull upon it to pay existing debt but that was not the way it was originally structured in its fundamental terms. And I will be buying more stock on a personal basis because I do believe in the company. I do think that it is a good buy at this price certainly it is and I made a statement in a press release earlier this year that I thought the stock was greatly undervalued. I still believe it is greatly undervalued. I believe in that press release when I stated at the time was that I thought it should have been trading at least $1 a share at my own opinion of the amount it was undervalued. I haven’t changed that opinion, the convertible debentures are laying heavily upon that and my guarantee a dollar a share of course not. I am just giving you a personal opinion based on the fundamentals of the company and I believe anyone looking at in an objectionable totally independent way would come to a similar conclusion, you’d have to look at the assets, you would have to look at the customers we have the business, the nature of the customers we’re talking customers that have balance sheets in the billions of dollars each. We’re not dealing with a lot of smaller customers. Our oil and gas customers are household names out there in the oil and gas industry.
You’d have to look at all the fleet of trailers and trucks we have and our expert technicians out in the field who service those rigs. The Company is in a very advantageous position in terms of the enforcement, number one to have acquired the terrestrial networks over the last 10 years that are now located in very specific oil and gas producing territories; number two, to have variable to develop the technology to go deliver to those drilling rigs. We’ve invested several million dollars in what’s called our mobile broadband trailer fleet. We have 132 of those trailer mounted erectable 50 foot towers. They are the key to our delivery, our competition has nothing like that our competition is still using VSAT very small aperture satellite terminals to deliver bandwidth which is more expensive and a lot slower than what we’re providing on our terrestrial networks.
8K not as bad I as I thought. 1.28M @ .03 putting us just under 15M OS. Less shares issued in only 6 days, maybe were done and payoff PR next week. Volume action way low today suggests we may have churned through debt holder shares. A bit of speculation there but looks good!
Like Ive said Bob over and over, when they deviate from the new game plan I would be concerned. Those old posts were at a time when the stock was at a much higher price with a much higher market cap. At .025 and market cap around 300K I will take my chances. NO need for you people Short or just here to try and save me/us new longs to keep bringing up old news.
I know your impatient but its coming! Next week I would guess hang in there.
Guess I need to post the rest of it. wow. :
Under the first agreement, ERF Wireless has retained the investment banking firm as its exclusive financial advisor in connection with debt consolidation financing of up to $5 million of existing debt. Under the second agreement, ERF Wireless has retained the investment banking firm as its exclusive financial advisor in connection with providing the cash portion of acquisition financing of up to $20 million. The planned acquisitions specifically target several organizations that offer accretive revenue and strategic value to the continued development and marketing of the wireless broadband products and services of ERF Wireless. Specific terms and conditions, which the company belives to be reasonable and attainable, must be met for these acquisitions.
The third agreement anticipates an up-listing to a national market and a public offering of $30 million on a firm-commitment basis. The planned public offering is subject to the company's successful acquisition(s) of one or more companies meeting the requirements of the investment banking firm.
ERFWireless' CEO, Dr. H. Dean Cubley, said, "We are exceedingly pleased to establish this relationship with such a prestigious New York Stock Exchange member firm, which validates our business plan and the value of our existing business that we have built over the past few years. We expect the assistance of this well established investment banker will continue to accelerate our growth. An aggressive acquisition program is already under way, and we are beginning due diligence on several highly qualified acquisition targets. Our management team believes we can satisfy the conditions in all three investment banking agreements and add significant value for our shareholders."
Here Bob let me help again:
ERF Wireless Inc. Announces Investment Banking Agreements for Debt Consolidation, for $20 Million in Acquisition Financing, and $30 Million in a Firm-Commitment Public Offering
LEAGUE CITY, TX -- (Marketwired) -- 04/30/14 -- ERF Wireless (OTCQB: ERFB), the operator of the nation's largest terrestrial wireless broadband network servicing the domestic oil and gas sector, announced today that it has signed three investment banking agreements with a leading New York-based investment banking firm to assist in sourcing capital. The investment banking firm was founded in 1925, is one of the oldest in the United States, a member of the New York Stock Exchange and a full-service broker-dealer employing over 500 people. The firm manages two Morningstar-rated funds with over $2.8 billion of retail accounts, nearly 100 registered representatives and 20 investment advisors in six offices.
Not the debt holders ptc, the new investment firm that will be funding the M&A and refinancing.
back to golf course
The investment banking firm they attained is calling most of the shots currently and it showing on the bottom line. Things are way different now.
Someone just made a nice purchase of 640K> If we only we would have started buying at.025 eh Bob?
And not just the convertibles. Dean is refinancing ALL debt on much better terms which is going to save big $.
Everything I put on here comes from the CEO or a PR Bob. No pumping here but I sure see a lot of mis-information from a negative perspective so I counter with quotes from the CEO and PR's. I choose to believe info coming directly from the company over a poster on IHUB. I have addressed your post regarding R/S many times with the same. I have posted here today my displeasure at the price Dean is issuing shares to the debt holders but thats where the gray area lies until the debt is paid off.
And please Bob lol, its not hard to tell who is short and who is a disgruntled long.
He hasn't lied yet since I have been a shareholder. If that day comes you can say I told ya so. Until then I take him at his word.
"my guess is that cubley will just replace the existing converts with new ones"
Thats just ridiculous. You shorts are relentless even in the face of longs getting beatin down with these convertibles. If I were short I would let the converts do the work for me and after there gone start with your campaign.
Geez
From the C.C: "A stockholder points out that we have had a couple of reverse splits in the last few years of the company and do we have any plans for a reverse split going forward?
The answer to that is no. We did what we had to do to keep the company moving forward. And if the stockholder support the stock out there and move it forward we’ll be able to achieve everything without anyone ever suggesting a reverse split. I certainly would never vote whatever shares I have for reverse split going forward. So, you can be assured you have one vote of no on the Board of Directors if that subject ever comes up and I don’t expect it to ever come up."
Those loses are shrinking rapidly and soon to be profitable.
"Our second quarter and six months results for the period ended June 30, 2014 reflected the decisive actions that we took early in 2014 to reduce our operating expenses. Overall in the six month period we achieved a reduction of 1,321,000 in operating expenses in the first half of 2014 compared to the first half of 2013. This reduction is the equivalent of 2.6 million reduction on an annualized basis and that compares to an overall EBITDA burn rate for 2.6 million for all of calendar 2013. We continue to make good progress on executing our restructuring plan, reaching positive cash flow from operations and aggressively focused on driving market share, increases for our products and services and associated revenue growth."