Labwire Inc (LBWR)

[micham2012]

rrufff:

This is the most interesting thing in the report. And I am also confused.:) Frankly, this "loan" does not make any sense to me.

As I understand it, on February 4, 2009, North American Energy Group entered into what is essentially a non-recourse "bridge loan" in which it agreed to accept a fixed amount of Labwire stock as currency for repayment. Apparently the loan came due on April 1, 2009 and the company permitted "foreclosure" of the "collateral" for the loan -- an understandable decision.

But why would anyone loan on these terms? Was something supposed to happen between February 4, 2009 and April 1, 2009 that would make the company want to repay this loan? How could this deal ever turn out well for the lender? Why would anyone pay $263,000 for stock that it could buy in the open market for a small fraction of that amount?

Is this the North American Energy Group that was the lender?

http://www.naeg.com/

Is this?

http://www.northamericanenergy.net/

Do you suppose the lender would like to loan me some money on the same terms? It could be a 1 day or 1 month or 1 year or 1 decade "bridge loan" as far as I am concerned. Even if one assumes that Labwire has a promising future -- and the latest numbers are comforting, but not exciting -- why couldn't I take the loan proceeds and go buy stock in the open market? I mean, does anyone really think that this report will drive the share price above a nickel, where it was before a crisis of confidence caused the latest death spiral?

Above all, what the hell am I missing here?

Thanks in advance for any light you can shed on this for me.

Steve