Kudos Mr. Beebe, this does answer many questions.
It does present some additional questions however, some minor, some major.
With the acknowledgement of so many different people owning preferred shares, one major one is a question that would affect the numerous recent postings by PQL that hammer home the point that what you should be looking at is the % of the assets each common share owns. He keeps saying, wouldn't you rather own a smaller % of a lot of assets then a larger % of no assets. But 2 very important questions not answered in this release are: What is the equity conversion rate of preferred stock to common stock. How many preferred shares are outstanding. Without answers to those 2 questions, any assertions by PQL regarding the % of assets owned by common shareholder are pointless. I wonder why in such a comprehensive summary Mr. Beebe ommitted disclosure on those 2 questions??????????
More relating to what was answered, and what new questions arise in order - some minor, some not so minor.
Minor question: Which previously announced acquisition(s) were not consummated?
Minor question: It was mentioned that the directors and management were compensated via restricted shares. How are the non-management employees (if there are any) and retained professionals (David McGee, Scott Cinnamon, the Canadian counsel, etc.) being compensated? If with cash, from what source?
Not quite as minor question: It was previously PR'd many times that the shareholders benefitted by owning debt free radio stations. We now learn in fact, to the shareholders those assets are indeed encumbered by a $600,000 promissary note. When were these assets saddled with debt to the shareholders? A transparent company would be happy to post a copy of that notoraized note somewhere. (Side question relating to this and a point in order later down the release. It's clear more than just this promissary note exists based on the later assertions that Mr. and Mrs. Beebe and 11 other accredited investors have lent money to the company. How much more money has been lent and what are the interest terms of those loans? It was very nice of Mr. Beebe to only charege 1% on the 600K for the radio stations, why wouldn't he report the terms of the other loans? Could it be possible that the common shareholders are already upside down debt to assets? That question wouldn't have to be asked of a transparent company BTW.
A minor point that was answered: The officers and directors are not that fiscally responsible with their own money. They collectively intend to turn $20K of cash money from their own pockets into restricted preferred stock - which is what they are compensated with already? Not a very fiscally wise move, unless they have a very favorable, unpublished conversion rate???????? Those guys are smart with their own money, right?
Major questioned already briefly addressed earlier: Loans from John and Lora Beebe and the 11 accredited investors. How much money was loaned, and what are the interest/re-payment terms of those loans? Again, another question that would not have to be asked of a transparent company. (And BTW, do any reciepts of deposits of funds into PHGI accounts exist anywhere for these loans? Hope they all kept their receipts in case they get audited)
Minor question: It was mentioned again that PHGI requires a clean, debt free shell. RNVO is undeniably NOT one of those. How is it then that it could be PR'd that the RNVO acquisition is "on schedule" Does Mr. Beebe have any control over the cleanliness of shares or debt of RNVO? If he doesn't, how could a clean, debt free shell acquisition of RNVO be "on schedule?"
Very minor question: They anticipate to begin realizing revenue at the end of the fourth fiscal quarter. When is their fiscal year end?
Moderately important question: He mentions they have identified 32 additional locations totalling 5 miilion tons of material that they intend to open-pit mine. Do they hold any permits for open-pit mining? (oooh, oooh, I know this one. The answer is NO).
OK jaunly and balckcat, go ahead and explain why every question posted above is irrelevant as it relates to the value a common shareholder has, or how Mr. Beebe is totally transparent already and has no need to answer any more questions. Your responses should be entertaining.
Regards.
