Tyaz, when my partners and I invested in Intrepid Capital Holdings and Paks Drilling they were private companies. Their business was suppose to be drilling and delivering crude oil here in the United States. They also had some renewable energy technology that they said they were working on. The best we can tell is that the two individuals running the show over there in Kansas raised about $6 million with the help of another nefarious character who has experience at drilling. He talked a good game and knew what he was talking about.
They delivered nothing! They had some folks out there working but they didnt know what they were doing and all the oil they pumped out of existing wells on their leased lands they sold and pocketed. They never drilled one new well!!! They also had a wood pellet company and water trucking business that I believe made some money but they pocketed that to and those eventually went out of business owing a lot of money.
They somehow managed to convince UAT (a private company) to merge and go public with them. I am not really clear about the structure of that deal or how they lied their way in but they did. Somewhere along the line or in the middle of that deal UAT Group was formed, UAT became a subsidiary along with Intrepid Capital holdings and Intrepid Innovations. They went public through an existing public shell with ticker TMGR (I forget the company name) at which point they changed the name to UAT Group ticker UATG.
The crooks that ran Intrepid and Paks Drilling then were inside UATG and they ran Intrepid Capital Holdings and apparently convinced Mr. Umbra along with many others including lawyers and accountants that they were experts in SEC compliance. They may be whip sharp about regulations but they use them smarts to be crooks. I am not sure how they did it but somehow they convinced other shareholders of the original shell to give them unrestricted stock. Then they sold quietly while they pumped and they sold VERY cheap. The folks they brought in to pump and dump are bad folks, sharks, and they ruined the UATG market. The nearest I can tell they also sold company assets off and somehow pocketed the money. Mr. Umbra is not an oil guy and basically left running that side of the business up to crooks. A decision he assures me he regrets but ultimately allowed 3 bad guys to hurt many folks up there in Independence KS. Mr. Umbra caught on a little later on and after 1-2 years he fired both of them. The problem was that the damage was already done. Mr. Umbra is a savvy business guy but not when it comes to running a public company which is completely different. That of course has changed as he caught on pretty quick. He has built and run a few companies all of which I believe were very successful which is how he funded UAT and UATG on his own in the beginning.
I have spoken with several of the folks up there in KS and they told me that they were contacted by Mr. Umbra personally as was I. Legally he had no liability or responsibility to do anything but he paid many of those folks for bills that the three crooked musketeers ran out on and never paid. I know 2 of the bills were well over $25k to mom and pop type local businesses and had Mr. Umbra not stepped in they would have gone out of business. He knew that and as an honorable man didnt let that happen. That alone earned the respect of my partners and I and is one reason I have stuck with the company. Not everyone has been as fortunate in business as I and my partners have. We know how tough business can be. If you bring it up to Mr. Umbra he wont really discuss it nor take credit for what he did. My laywers private investigator found that out and thats how we heard about it. I can tell you that I know for a fact that Mr. Umbra was advised to shut Intrepid down and not pay anyone. Several people advised him of that and that came directly from my lawyer who spoke with the companys lawyer. Hell, my attorney said that was sound advice and agreed with them! We have a lot of money in DD on this company and the people who ran/run it. We were determined to sue the previous companies and the previous owners but legally we didnt have enough. We still intend to go after the previous owners and I am confident that those folks will end up behind bars where they belong. The irony is that the guy they really stuck it to and left holding the bag is the reason that they didnt got to jail straight away. Had Mr. umbra not stepped in and compensated everyone those folks and the company would no longer be around or walking around free men. I bet that just gets Mr. Umbra's goat to but it is what it is.
With me and the others he also issued stock and asked us to leave the restrictions on for 5 years or until the company was profitable. I dont know about the others but me and my partners agreed to those terms and have kept our word as has Mr. Umbra. He was very transparent when he didnt have to be and when he probably should not have been (legally speaking). He said he would have the company profitable by the fifth year mark and as you can see with the sales of Hygieia he is about to keep his word because come this December it will be 5 years. The man has never lied to me and has always come across as honest and VERY straight forward.
The company seems to be doing much better now, is delivering products and is trading more than it ever has which is good but the PPS needs to come up. I have seen a few products that they have designed and made in
meeting I had with the company when things came to light and our attorneys were involved. The products look and feel expensive which is reassuring on one hand but worries me because they have to sell an expensive product. I will say that the prices they charge for some of their other products all are less than competitors but I am not sure how they do that without it being a loss. Mr. Umbra has said on several occasions that he wants to put out a better product made from the best materials but have it be reasonably priced. So the price thing is obviously intentional. Hygieia is a good example because the few competitors that do exist charge $20/pair to Hygieias $20 for 3 pairs!
My only complaint is that he wont tell me how hes going to bring this girl home but thats just my impatience because he really cant and shouldn't tell me that sort of inside stuff. Not that I would use that plan if I knew it to make money but I would sure feel better about my money if I did know.
Hopefully this DD helps everyone in some way
