Houston Natural Resources Corp (HNRC)

[Go Pack Go]

1. Couple of questions regarding Cunningham: How are they going to pay for it? With the stock at $ .37 it would be a huge dilution if they used stock. How much cash do they have? Seems the only source of cash for an acquisition is the SPAC with $86M in the bank. But that does not really help the HNRC stockholders?

2. The market currently values 100% of the company at $ .37 per share with annual revenues of $20M, net income of $5 - $7M, and 50 million shares outstanding. Then we are going to have a stock dividend in mid-December where we divest 50% of the company into a new entity and suddenly those shares are going to be worth $5 per share? Where is the math that supports that assumption? And where does HNRC trade at after the dividend?

3. The market obviously is skeptical about the press releases or we would be trading for $2 - $3 per share. It would be very helpful if Frank would release the audited financials and explain how this is all going to work. I think most investors are confused or highly skeptical. A little clarity would help attract new investors.