MWM...NXPN debt obligations.....
"Everyone is so afraid of the R/S but I think this is a steal either way, if they r/s it under .01 it's stil going to be under .10 and have a tiny market cap...
The only downside is that High Plains Gas must be a new company because I can not find out much about it on the web. With Mark Hettinger's experience I think this is worth a shot..."
I think one area of concern regarding this particular RM probably centers around the two debt obligations that exist. If I recall correctly from the mental notes I took, there is a $20+K floorless convertible debt owed to the interim CEO and a $280+K debt (no repayment terms disclosed/announced) held by Guy Peckham (former CEO of EWRL, and one of the individuals who purchased majority control of the shell).
Unfortunately neither the 8-K or other filings gave any clue/details on exactly how the debt will be resolved, so there is really no way of knowing what (if any) impact the debt might have on pre/post merger dilution. The wording in the reorganization agreement is a bit curious, because it potentially suggests the possibility of some pre-split dilution if the reverse split scenario is enacted. Notice that in the "cancellation" part of the agreement, the company provides an exact number of shares that would be cancelled, so you know exactly what the outstanding share count is prior to the cancellation. However, in the "reverse split" section of the agreement, the company does not provide any RS ratio......
NXPN shall either complete a reverse split of its common stock or cancel or cause to be cancelled a total of 86,720,000 shares of its common stock such that at Closing there shall be a total of 13,000,000 shares of common stock issued and outstanding.
AI
