Short answer
because of these deals [ and others]
also it's helpful to know that Capital growth resources is no stranger to the market making game.
Phoenix Associates Land Syndicate Settles Long-Disputed Notes
COVINGTON, LA, Jan 03, 2006 (MARKET WIRE via COMTEX) -- Phoenix Associates Land Syndicate (OTC: PBLS) announced today that it has favorably settled a longstanding promissory note dispute that has been carried on Phoenix books as a disputed contingent liability for years. The settled notes were related to capital raised, in a partial funding, in the late 1990s for the purpose of developing its Murphy Sand & Gravel operations. According to the terms of the settlement agreement, Phoenix has paid Capital Growth Resources and Capital Growth Protection, Inc. a total of approximately $557,000 in cash and approximately 11,824,000 shares of Restricted Common stock to settle disputed claims on $2,350,000 (approximately $8,000,000 total savings with estimated interest) of outstanding promissory notes issued in connection with the aforementioned raised capital.
and
FOR IMMEDIATE RELEASE
Phoenix Associates Land Syndicate Releases ProGas Acquisition Details
COVINGTON, La., Dec 16, 2005 (BUSINESS WIRE) -- Phoenix Associates Land Syndicate (Pink Sheets:PBLS) today released information regarding its acquisition of ProGas, Inc., previously announced on Thursday, December 15th. Phoenix acquired the Covington, Louisiana-based Energy Services firm for a combination of cash, preferred shares and restricted shares in a transaction valued at approximately $4,500,000. Total purchase consideration consisted of $2.5 Million in-cash payable in installments, 150,000 Preferred Shares(a) and 10 Million restricted common shares at a value of $.05 per share.
BTW - anyone who has read any of the press releases where PBLS mentions paying interest on the preferrred would not be able to say that PBLS is "debt" free.
