Nope, that won't work. For several reasons.
First, what would you do with the illegally issued unregistered shares? Would you just tell all the victims "tough luck"? Or, are you saying they would use the newly issued shares to fund the rescission of the illegal shares? That would be nearly impossible, as Petro clearly doesn't have any idea of who the victims actually are, as Owen doesn't seem to have kept any records, nor did the illegal third party sellers. They were just interested in the cash. Plus, Arizona has legally declared the shares sold there null and void, so those holders would have to be substituted. Plus, assuming they could even get approval to sell new shares (unlikely considering the past history of the company), who in their right mind would buy them? All the money would go to pay off the original victims. And, the company has no assets whatsoever anyway. For the new shareholders, it would be like flushing all their money in the sewer. It would be nothing but charity for the victims, and the pain would shift from the old victims to the new shareholders.
Of course, we are also ignoring other facts, such as the impossibility of preparing factual financial statements and obtaining and complying with the supporting documentation required to trade, but since those significant and unobtainable hurdles come after the impossible to complete scenario outlined above, they are actually moot.
