The unsubstantiated, and unsupported rumor regarding MMEX beginning “construction” of the Phase I(a) portion of the project first appeared on a closed, private social media channel at 8:03am CDT Wed., July 18.
The use of this closed channel for communication of material information is problematic, independent the source of that information - it represents a violation of securities laws, and anyone trading on that information is potentially going to run into the consequences. If the information is false, which is most likely, that represents another regulatory violation.
If the information is correct, there are other problems. Publicly traded corporations have 4 business days to report material information via an 8-K filing. Technically, the 8-K would have to be filed by 5:00pm EDT Mon., July 23, or there will be yet another regulatory violation.
MMEX must report material events to the SEC, and it is prohibited from the use of closed channels to supply information which may be used to trade, or manipulate its share price.
Either the rumored construction start is false (most likely), or there are multiple securities law violations in progress.
It would take sufficient project financing (and one or more material definitive agreement(s)) in order to move ahead with Phase I(a). That would require an 8-K filing, and it would be problematic if that information were leaked ahead of the filing, and anyone traded on the basis of that information.
The basis of this rumor is suspect, at best. At worst, this is fraudulent, and potentially crosses the line into securities law violations on numerous fronts. The actions of bad actors potentially box MMEX in, even if the company itself was not directly involved in the leak or related wrong-doing.
As with all sub-penny scams like MMEX, bad acts are part of the standard game. The most likely root of this is just rumor, part of another pump attempt. The next most probable reason is another part of the charade - push some dirt around, to confuse unsophisticated retail investors, as another dimension of activity to pump MMEX. In any case, it is just more of the same old comedy.
When you are dead, you don't know that you are dead. It is difficult only for others. It is the same when you are stupid.
