Bad, I think the damage may have been done to the share price for now and maybe we'll consolidate here before moving to the upside again, if we are lucky.
A couple of years ago I thoroughly researched and watched this company and concluded that the company has possibilities, but that it had been very heavily diluted in order to survive. And now the dilution continues, even though I do think we are at the bottom at .0004.
The company has $7,560,000 in shareholder value, while maintaining $14,400,000 in restricted cash. So there is cash in the company. In my opinion, what has pushed us down to this level is the pending conversion of the Series E shares. There are 183,969 Series E shares that convert to 100,000 common shares for each Series E share. That comes out to over 18 billion common shares. However, my guess is that only about half will be converted in the short term. We also have the directors and a consultant holding 5 billion restricted shares, so it is easy to see that FRNC could easily bump up against its 20 billion shares authorized. Plus, there are a couple of other categories of shares that could eventually be converted.
So my point is that if you take the $7,600,00 in shareholder value and divide it by 20 billion, you get .0004, which is where we are now. In my mind, the market is simply looking ahead to the share conversion. What would counteract the share conversion would be good news that FNRC's oil and gas production is coming back on line. This good news will likely send us up. How far up is a question for the technical and momentum traders. My guess would be .0015, but that would only be a guess based on possible future performance of the oil and gas production. (Could go much higher than that, with the right exposure, as you say.)
Anyway, I think the operational loan for $2 to $5 million, which we are waiting for, and the actual Series E conversion, which we are also waiting for, are very much linked. Apparently FNRC can't or won't pay the transfer agent until it gets the loan. So I hope we get positive news on the loan soon.
Good luck,
Cropduster
