Sierra Resource Group Inc. (fka SIRG)

[thizsukz]

An interesting thing about the 150mil additional shares. If you look at the purchase agreement with Harmony they will get the bulk of these shares (I should point out that I could be totally misinterpreting this agreement). According to the agreement posted on Edgar http://sec.gov/Archives/edgar/data/1076966/000110801711000145/sierrra8k.htm
Harmony will get 40mil class B stock which is essentially equal to 120mil Class A stock (See section (f) which state that 1 Class A stock is worth 1/3 class B stock) which is the current traded stock.

So the troubling thing to me is that Harmony will get roughly half of the company for essentially brokering this deal. That seems quite absurd given that they are bringing very little to the table.

If the "bank" is so reluctant and forced to do their own due dillegence to provide the financing, it is obvious that Harmony does not have the cash/assets on hand to actually secure the loan. So again I ask the question what is Harmony bringing to the table that justifies them getting half the company (120mil/239mil (119mil as of record date plus additional 120mil to Harmony)

I should point that I have a substantial position in Sierra and am asking these questions simply for discussion purposes.