We have been told repeatedly that the merger is waiting on SEC approval, dotting eyes, crossing Ts on the forms, and there have been ongoing updates of the SEC application. I also think that AEXP wants to see the funding deal completed before the merger is completed, but potential new cash investors for new shares might want to see the merger completed before funding new shares. Just speculation on my part, educated guess.
The price is down because they are trying to raise funds needed to complete the BP#1 well, and they have past due bills (unsecured bills) to pay. There is a private offer out that is offering new shares at .15/share, 66 million new shares, to close the funding gap. But funding is scarce world wide lately, so it is taking a long time. Right now is not the time to sell IMHO. I still own shares I bought at .67/share in AEXP, which is $2.68/share for MNLU (before the merger was announced), and I am still holding, in this one for the long haul!!!
MNLU management did goof, they should have sold new shares in Feb this year, but they expected a much better market for raising new money this summer/fall (even secured loans were planned), but they ran into the summer sell off, Euro panic, people sitting on cash..problem, and so here we are at a 90% discount, that is 25% of MNLU proven reserves asset book value! I think they fully expected to be able to do a JV deal or secure bank loans to complete the well, which is why they did not dilute in Feb this year. If this was a scam, they would have diluted on the well news in Feb/march this year!!!!
Ambition with out knowledge is like ship in dry dock. Going nowhere fast!
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
