No financing for MMEX is, or ever will be forthcoming.
The much ballyhooed and anticipated financing will never happen, on the basis of the following facts:
- MMEX's management team has a record only of failure and loss generation, cumulative losses for investors of $36.9-million, and now growing, with this latest share selling scheme.
Investment banks and syndicates consider the quality of the team, and its track record and history in their investment decisions. They have a legal, fiduciary duty to decline investment in failed-out-the-gate deals like MMEX.
- MMEX's current structure, a soup of toxic debt, and super-diluted equity (really just more toxic debt disguised as equity), traded OTC is one of the single biggest red-flags to any legitimate investor. It is like an array of flashing, intensely bright red warning signs, saying "Run Away."
Investment banks and syndicates despise paying off insiders, and hate cleaning up messes, like potential shareholder suits that inevitably arise from "deals" like this.
- MMEX's "business plan" is a poor fantasy for what entry into the refining sector might look like. The impossibility of operating a topping unit at a profit is one of many factors. The flawed transportation infrastructure, and built-in hits to COGS and product margin are difficult, if not impossible to overcome.
Investment banks and syndicates understand this sector - in fact it is quite well understood, and MMEX has no proprietary key to unlock anything different.
- MMEX has only generated superficial PR - they spent $10-bucks (of other people's money) on worthless desert land, and called it a land deal. They spent $100-bucks (of other people's money) on a TCEQ administrative permit, a non-accomplishment. MMEX lacked even the most basic internal competency to complete the PBR application on its own, and had to hire a consultant (using other people's money) even to get that done. The rest is empty PR, including the upcoming groundbreaking ceremony.
Investment banks and syndicates understand all this. No i-banker would touch this stinking pile with even a 1000-mile long pole.
No financing will ever happen.
