"These common shares were subject to a two year non-dilution clause and were valued at $1 per share.( That would be 59,000,000 current shares - but more likely @2,809,520,000 pre- katrina shares (Note: that would be greater than the current float OS and AS together)"
That's not how it would work. You are confusing Preferred and restricted common shares. The Lenders Trusts were groups of private individuals who bought stock in PBLS as some of the first registered releases. They paid $1 a share but that doesn't mean that those shares are now worth $1 value of current shares (at 12/22's pps that would mean 100 shares each for 1 restricted common share). It just means that these folks were convinced that the shares were worth $1 a piece and invested $1 a piece for them back then. It's very similar to when some friends and I started a dot.com during the late 90's. Some folks bought shares at $5 a piece to help us get the company going. Later we sold (and I got screwed by my partners) and those that held their shares were rewarded with approx. $17 for each share they had bought. But it was a risky purchase either way. They never knew if we'd make it. And we barely did.
Phoenix Associates Lenders Trust folks bought for $1 through a private placement by Capital Growth Planning (very reputable company) and their shares are now worth $.01. That's the risk they took and they lost and we now are all betting on the fact that Phoenix can turn it around, so we buy at $.01.
But my real point in the last post seems to be the one you still don't understand. They never "acquired the pit." They acquired the lease from Murphy for $100 and then mortgaged that lease to the Lenders Trust folks an Capital Growth Planning folks. That "leasehold mortgage" is how they raised early capital. They don't "own" the pit. If they had bought the pit then you and I should be looking for preferred shares as it was probably valued at around $10 million back then. If they did own the pit right now, there would be no lawsuit. Again, all Phoenix does is "rent" the pit for the payment of royalties which was all well and good as long as they are mining but before Katrina made the pit valuable.
And BTW, Phoenix currently does not claim to use restricted shares for acquisitions (and I can find no evidence they ever did). They use Preferred. Huge difference. Restricted shares are just that...common shares that have a restriction (usually some kind of dilution clause). Preferred shares are more valued and come with promise of future dividends off of potential future earnings.
Not trying to be harsh. Just trying to help you understand. It would help if you looked up what a leasehold mortgage is.
Ren
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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