![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Monday, April 02, 2007 4:48:18 PM
I was waiting to post this when I got some definitive feedback from Larry, but figured it's worth updating the board for ref, as the feedback timeline could be weeks...
I talked briefly with Larry last Friday, pitching the idea of the reverse merger. He asked me to draft the idea and email it to him. My email inlined below for ref.
I just reached him by phone again now. He said he received my mail and forwarded it to the lawyers who are considering it now. He mentioned there may be issues reversing a low-priced company (EQBM with $2.3m market cap at 005) into one with 20x market cap (Soma @ $46m). ie: The conversion multiples for EQBM may not be ideal. In my estimates, I used 10:1, which seemed favorable, and 20:1 doesn't seem too bad either.
He said he's out of town the next couple days, and we can talk more Thursday.
No idea if anything will come of this. Like Treeman, just passing this on FYI.
------
Hi Larry,
This is xxxx. I just talked with you by phone.
Writing to suggest a way to restore value in EQBM shares without having to convince Market Makers to sponsor it for pink sheet trading, while also forcing the Naked Short Sellers to cover by buying Soma shares.
The idea is simple: Have Soma Petroleum buy out EQBM, converting all EQBM shares to Soma at a reasonable conversion ratio. By example, a 10:1 ratio would covert the 450m EQBM OS to 45m additional Soma shares. If the Soma OS is still 59m shares, this is less than double the current OS. A 5:1 conversion would raise the Soma OS to 150m shares, which is still very reasonable, given the projected Dalian revenues.
The beauty of this conversion is that it solves many problems at once:
-- You no longer have to worry about getting EQBM off the gray sheets. It simply stops trading.
-- You no longer have to worry about the SEC and its questionable practices (eg: suspension), as the converted Soma shares will only trade in Germany. No longer in the USA, so out of the realm of the SEC.
-- The existing Naked Short positions will finally be forced to cover. They will be forced to turn in the outstanding EQBM certificates. Given that German markets do not allow naked shorting, the DTCC can not help naked shorts hide their accounting imbalance. The naked shorts will be forced to cover their short EQBM at market. With EQBM on the gray sheets, this will be nearly impossible, so they will most likely need to cover post-conversion, buying Soma shares on the open market to fill the accounts they have stolen from. This may cause a short squeeze in Soma as the conversions are processed.
If you announced this plan with official news of the Dalian contract and revenue distribution (all EQBM/Soma revenues going to new Soma composite company), you would accomplish all of the above.
On the iHub message board, we have discussed this option in depth and feel it is a very viable solution to the current gray sheet quagmire. The only downside to investors is the inconvenience of needing to open an international trading account. But we need to do that anyway to deposit our existing Soma dividend certs.
Feel free to call me if you want to discuss the details of this idea.
xxx
EQBM & Soma shareholder
99.99% of all pinks are scams. Best to assume the other 0.01% are as well.
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM