Wild man: Given that Jerry Mikolajczyk has committed to issue over $2 million worth of free-trading shares to ECVI in exchange for dubious debts it "purchased" the proceeds of which go to himself and Peter Matosek and possibly other officers (I forgot which are included) as well as to Vencedor and CM Research as pre-payment for services to be performed in the future, XNRG has deprived itself of any ability to raise new funds through equity (convertible debt or direct stock sales) to support operating activities.
Vencedor (just one guy who uses a PO box as an address) is presumably going to drill more wells after receiving nearly $900K pre-payment but given the poor performance of #15 and the decline in the price of oil, it would be an obvious losing proposition.
No one in their right mind who truly understands the horrendous impact of that kind of toxic dilution would ever buy the stock.
Some companies go into a brief or prolonged quiet/dormant period after dilution has driven its share price to no-bid status followed by a reverse spilt. The previous shareholders end up wiped out when the dilution resumes as it always does. The company hype machine is ramped up again and promoters are engaged to stimulate buying by a new pool of investors. It's a common "wash, rinse, repeat" cycle of penny stock scams.
However it's rare for a company to have a known commitment to dilute so heavily -- especially when the new shares are not going to fund operations. Jerry and Peter may believe they can spin a compelling enough tale of good things that are going to happen that no one will consider the massive dilution.
Pre-paying CMR $365,000 for things like hiring subcontractors to post "subliminally and repetitively" on the Internet is apparently one of their strategies. Given that buying would be met with selling demand by ECVI, I'm not sure any subliminal and repetitive posting is going to be effective.
CMR also fills the role of trying to help XNRG intimidate people who express negative opinions or even documented due diligence that reveals the unfavorable aspects of the company or its officers and directors by collecting as much personal information as possible and threating further action.
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AI
