Hey Scuba
I have been trying to contact Robert Charlton at info@primegenenergycorp.com without any success so far. I wrote to the company on December 24/09, January 7th, January 13, and February 3, 2010.
Alas, no response. The last two letters were copied to the company's attorney, Marc Applbaum. He is shown as legal counsel and as an officer of PGNE on Pink Sheets. I haven't heard from him, either. He must be a busy guy. Here is my last letter:
February 3, 2010
Hi Mr. Charlton
On November 23, 2009, you announced that your company would purchase up to $10,000,000 of PrimeGens stock and I am kind of wondering whether the company has bought any yet.
I mean with $10,000,000 and the shares trading at an average of $.095 per share, one would think that PrimeGen could pretty much buy up the entire float. According to Pink Sheets, the float was 35,590,000 shares as of Sept 30, 2009.
As you said on November 23, 2009:
"We have been astounded by the sharp decline in our share price over the past several months. Nevertheless, we believe PrimeGen's share price has become significantly undervalued. That view is based on our assessment of the oil & gas market over the next few years. Accordingly, we believe repurchasing shares at these prices represents an exceptional investment opportunity."
Well, I guess you might say that I am somewhat astounded myself. I mean, I only hold 45,000 shares, and my average cost is 0.1178329 which may not seem like much to you, but I am down 23% and sitting on a loss of about $1,300.00. Maybe the stock price will go down some more, like today. It's trading at $.09. I see no evidence of any insider trading, or the Company actuallly implementing your plan. Pink Sheets doesn't have any record about this anyway. Maybe you should tell them about your buy-back plan. Just a thought.
Just for fun, I check out some blogs relating to PrimeGen, and one of the bloggers says that your company is a scam. Kinda like Caliber Energy. They are building wind farms in China under the name Navajo Wind Energy. Check out that company on Pinksheets.com and you will see skulls and crossbones and caveat emptor written all over it. It trades at $.01 a share, amazingly enough.
Now I am not saying that your company is anything like Caliber. I took the time to read your last quarterly unaudited financial statement, and it really didn't look bad at all. It inspired me to buy more of PrimeGen's stock. I averaged down, figuring that this company is way undervalued. Well, I got more shares, but my losses have increased, unlike your company, which appears to be making serious money according to your various announcements.
It doesn't look to me like will be forced to raise capital by issuing more shares, since you seem to have made more than enough on the Timan Pechora project to be actually able buy back a bunch of stock. In the usual case, a buy back by a company has the effect of increasing the value of the shares. You could do a roll back to decrease the number of shares outstanding, but normally companies who do this need a higher share price to get the financing they need to continue a project.
Maybe your should declare a dividend of $ .001 or $.002 a share. That would wake people up, wouldn't it? Unless of course, you want to be like the Fat Cats in Goldman Sachs and those other "Too big to fail" banks, and just bonus yourself a couple of million bucks.
Honestly, I don't know what you can do or will do, you are working with a bunch of Russians over there, and maybe nobody in the USA trusts Russians. They have their share of corruption, doncha know? Maybe the cold war isn't really over.
Maybe you can sit down with Mr. Applbaum some time, and come up with a plan. He is the securities law expert. As for me, I think you should update your web site a little. And next time you announce anything, put in your web site address.
Regards,
Robert M. Fulton
Ok, maybe that letter was just a little snarky, and they may think that I am just some lunatic. With a small investment in the company. Be that as it may, they have announced nothing since January 6, 2010, nada, zip, and zero. Which makes me nervous. I am checking out their "transparency factor", and so far, it comes up as "opaque".
If PGNE were to buy back their entire float at the prevailing market price, it would cost the company $3.5 Million to do that, maybe less. If they hit every offer on the table for up to
$ 10,000,000, and their production figures are accurate, the stock should trade around $4.00 really fast.
If Mr. Charlton is truly astounded by "the sharp decline in the share price", and isn't just blowing smoke about this buy back, something should appear to be happening. We are led to believe, that PrimeGen is certainly in a position to implement the share buy back plan. But maybe, just maybe, there is nothing behind it.
Well, I was a lawyer for along time (now retired), and Mr. Applbaum is a lawyer and officer of PGNE, and I think he can understand the term "false representation", and the possible consequences of making them. All this good news that came out before January 6, 2010 led me to "average down" by buying more stock in PGNE, and I am a smart guy. If one relies on a false statement to one's detriment, then it's actionable if damages result. I am a Canadian, and don't claim to know too much about US law, but I think that there is such a thing as punitive damages, and personal liablity on the part of the directors and officers for making (or allowing) false representations to be made on behalf of a company.
We will see. Their audited financial statements for the year ended December 31, 2009 should be filed and published soon. In the meantime, I will just be content to let my losses run, and if the stock goes to ZERO, I will get back to even (or better) later. In the meantime, it's Caveat Emptor, for all you buyers out there.
Regards,
RMFCAN
ps Here are the e-mail addresses for PrimGen and their legal counsel
PrimeGen Energy: info@primegenenergycorp.com
Marc Applebaum: mapplbaum@apzlaw.com
