MMEX proponents, and unaware retail investors face some interesting challenges.
On the first order, why would a syndicate form to fund $50-million to $100-million in projecting financing, for an insolvent, super-dilutive OTC shell company?
MMEX has no business operations, no employees, and no luminary management or technology team.
MMEX, a shell company that originated as “Inkie Entertainment Group, Inc.” has nearly $40-million in cumulative losses and shareholder liabilities.
The company owns no intellectual property, or proprietary technology. MMEX has no supplier contracts. MMEX has no customer contracts.
MMEX has been funded to date with a stream of proceeds from floor-less, convertible debt - also known as toxic, or death-spiral financing, to more than $2.1-million in principle, and billions of shares of dilution.
MMEX has no production facilities, and no assets, and cannot form legally binding contracts, because an insolvent company has no ability to perform (i.e. execute) the contract.
MMEX’s principals have a shady history of failed businesses and schemes, extending more than 30-years.
The company’s sole tangible claims include a $100 administrative TCEQ Type O air quality operating permit, a minor source emissions permit, of the type businesses like dry cleaners, rock crushers, paving plants, etc. routinely apply for and receive. MMEX owns a 126-acre parcel of Pecos County desert property, nearly valueless, which represented a tax liability to the seller and former owner. It was obtained for $10.00 “and other consideration.” MMEX has a twice improved “road” from the nearby county road, to access its only other “asset,” a flagpole, used to conduct a misleading groundbreaking ceremony, conducted at a point when the company had no project financing.
MMEX has lots of self-referential PR, including shareholder letters, limited release, company-generated press releases, and other claims, none of which have any substantive, or corroborating evidence. The latest is the hilarious “term sheet” from an unnamed “international debt fund,” contingent, among other things, on raising $10-million in equity (recall that to date, after more than a year, MMEX has only raised $2.1m in convertible, floor-less toxic debt).
All available industry data points out that there is no opportunity for an isolated, stranded, inland regional refiner - even a real refinery. The claims of politicians, congressional reps, mayors, Railroad Commissioners - all politicians - not industry experts, are uninformed, and irrelevant, and none of them provide funding to MMEX. More sad, MMEX’s proposed Phase I rudimentary topping unit, if built, could not produce a single barrel of directly marketable refined product! The proposed topping unit, primarily to meet the 20tpy emissions limit for the TCEQ Type O permit, could only produce ATB, AGO, and LGO - none of which are useful in the market, and all of which require a complete refinery to convert into useful products. Despite claims of “agreements” (where are they) with companies like Pilot Thomas (where is the PR from Pilot Thomas?), MMEX’s Phase I could never produce a useful product!
Further, MMEXs’ chosen location is isolated from crude transmission pipelines, and refined products pipelines. The next best alternative, the South Orient/Texas-Pacifico rail line can’t be traversed southwest of Fort Stockton, can’t transport hazmat, and has no international rail crossing to Mexico, MMEX’s claimed target market. The best case would enable that rail route in 2020 or later.
MMEX is failed out the gate. It is a share-selling scheme, pure and simple. The company’s SEC filings document that fact.
AI
