MMEX Resources Corp (MMEX)

[jmjjw]

There is no legitimate reason to structure the operating entities as described - just more of the shell game, MMEX as usual.

The normal process for a business like this is to establish a joint venture (JV), and a special purpose vehicle (SPV), or "orphan company" - the SPV owns the project from construction through start-up phase, and to the point that the project financing has been paid back to the JV, through the SPV's operating profits - this includes the debt, and interest. Then the SPV sells the interest to an operating company, at is dissolved.

A topping unit, in any of its forms would be integral to a complete, complex refinery - there is no legitimate reason to run a distillation unit in a stand-alone fashion, as it is guaranteed to always lose money.

This is just more MMEX hocus-pocus, and further reflects MMEX's complete and total lack of the refinery sector.

They will actually have two separate subsidiaries to operate the two separate operations--one for the Distillation Unit which will be under Pecos Refining (which already exists), and a separate subsidiary they will set up to operate the large refinery. So both will be subsidiaries of MMEX--meaning MMEX will own both, just be operated by the two separate subsidiaries individually. Hope this helps.

Note the S1 filing this month, page 43:

"The Company expects to operate the Distillation Unit through its subsidiary, Pecos Refining, and to operate the Large Refinery through another subsidiary set up for such purpose."

It is under "Proposed Organizational Structure"

http://www.mmexresources.com/secfiles/mmexs1a110317.pdf ;