Al, I got a call this morning and found out what the issue is concerning converting the Series E shares to common shares. Apparently there is a billing issue between the company and the broker. The broker is the one, of course, that is actually going to convert and issue the new shares. It seems that once the broker gets paid for its services it will convert and issue the new shares. Apparently it is as simple as that.
This confirms what I mentioned last week, that there might be a link between the problem of getting the shares issued and FNRC's attempt to get the $2-5 million in financing to bring the oil and gas assets on line.
For anyone looking at FNRC for the first time, I believe it is important to realize that the company is not really broke, or even close to it. It simply will have a cash flow problem until it starts producing, which we know it likely coming in the next few months. FNRC has $14 million in restricted cash, for those that didn't know, which I assume it can borrow against.
In any event, my source says the best thing we can do is try to bring a little gentle pressure on the company to go ahead and pay its bill to the broker so we can get our shares. I still plan to call Brad at investor relations tomorrow to see if he can pass the message to the company to please go ahead and pay its bill. Anyone else that can also call Brad on this issue would be helpful, or maybe try to call Mr. Norris, the CEO, directly. Maybe call him after I call Brad.
Good luck,
Cropduster
