This information is important and helps round out the debate on this board and it conforms to all regulations on Ihub. There is no attack on any specific person.
The July information statements inform of the decision to reverse split with an explanation of the vote process that ratified the decision. Nothing else has changed.
There are collectively 1.2 billion voting rights….. Not 1.2 billion shares issued.
As everyone who understands sharestructure knows, each form of share carries a different number of votes. The corporate share structure for XTOG as follows:
· Willie Mc A the 3’s one thousand non transferrable shares carries 6,143 votes/share totaling over 614 million votes or 52.4%. Ensuring he retains majority control of his company.
· Each of the 3.4 million series A preferred stock carries 100 votes/share totaling 341 million votes or 29.2%
· Common shares only carry one vote/share.
All of this is outlined on page 10 of the proxy statement under SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The number of shares outstanding has not changed nor has the float. Once again, even ihub does not concur with the over exaggerated float numbers certain posters have claimed.
The series A preferred shares are owned by insiders. The shares must convert before April 2014 . This is the 3.4 mil number included in the proxy. When the choice is made to convert; the common shares will be held by insiders and not the public.
About the reverse split….
A reverse split that is purely cosmetic generally works out quite well. i.e. a company with strong earnings or a recovering company simply trying to make their stock more liquid. CitiGroup is a good example. They had a 10:1 reverse split in 2011 to bring their share price high enough to play with the big boys again and their price still remains strong. In fact CitiGroup is up $7.00 this month and analysts have upgraded their stock .
The reason why… because Citigroup fundamentals recovered….in the end strong earnings and revenue will always win.
XTOG is a recovering company. Investors need not be hit over the head anymore with how 2013 is the turn around year. Has one ever seen a management make more moves in such a short period of time???
I believe XTOG reverse split work out for two simple reasons:
1. They don’t have to do this. They are not in noncompliance with the exchange and forced to act. They just want to increase their investor market.
2. The management believes it will work. They are well aware of the negative perception RS have and took it into consideration. They are also more aware than anyone their company is going into the green …. This management is moving towards a winning balance sheet with giant steps.
RE Post #982 & #978
The sale they speak of is the same two joint ventures discussed in the past nothing has changed. I guess the management must have assumed investors would understand what ‘the sale’ encompassed and didn’t anticipate misinterpretation. The brilliance of the Torchlight/ Heritage deals still remains. Share 50% revenue in trade for cash, development to production level and income.
The red team leapt all over the two statements below to be sure, but what I read is brutal honesty that very few companies would have had the integrity to share. It shows, once again, the men of character XTOG.
Quote:1
At that point, which should occur over the summer of 2013, we can then proceed to implement a new business plan though we do not currently have one.
With all the management of XTOG have accomplished in this last 3 months coming up with a new business plan for their pending revenue is going to be an enjoyable endeavour. Not something to be vexed by.
Quote:2
"On May 9, 2013, completion work began on the Smokey Hills project and fracking was completed on June 14, 2013. The Operator has determined not to complete the first well and is reviewing whether to conduct vertical drilling operations around the first well. "
It appears drilling was underway the moment the Torchlight joint venture was struck and with regret it has turned into the ‘well from hell’. I do not know why a drillers’ frustration and hard work in the summers heat is so laughable, but then again, I do not understand the inclinations of a great many posts on this board.
Torchlight and Xtreme did not pull “300 barrels a day” out of the hat. They went into this joint venture armed with past production history and geo testing to know oil is definitely down there. With the promise of 300 barrels a day, they will not quit. We will be seeing production numbers shortly.
I have never seen a company that is trading so far beneath its’ assets value showing production and revenue that did not go north.
I appreciate how mundane it is to read SEC filings but, I implore every trader to read. The only true DD is an educated opinion of your own. It is the best defence against message boards that have moved into the absurd direction this one has.
