That's a very interesting letter. I like the potential, potential of this company. I was planning on buying if DD allowed. Upon doing some minor DD, I have a bad feeling about buying this company shares. First of all, the 10Q dated 4/30/13 indicated there were 670,246,929 shares outstanding. (670.22 million) That's not bad considering. But, I then went to OTC markets and looked up MINE. According to OTC markets, as of 6/19/13 there were 989,346,929 (989.3 million) shares outstanding with 2.5 billion authorized.
Think about this, this company diluted 319 million shares in a 6 week period!! That's more than a 50% increase in share base. So, if you bought 1 million shares early April, your holdings have been diluted over 50% so it's like you just lost over 50% value of your holdings.
Obviously, this company will continue to dilute. No matter what this company does with future product sales, they will sell shares to whomever steps up to the plate. According to the Apr. 13 10Q, they have no revenues and plan on financing their operations with continued dilution. That means that this will become a top-heavy bomb that can implode at any time. Below is a cut and paste from the latest 10Q:
2. Going Concern
These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the period ended April 30, 2013, the Company has an accumulated deficit and no revenue. The Company is in two lines of business, renewable energy solutions and the beverage business. The Company is in the business of developing, producing and providing clean, renewable energy solutions in Central America. The Company participates in and invests in development projects with other companies in clean, renewable energy projects. On October 16, 2012, we added an additional line of business, Level 5 Beverage Company, a progressive specialty beverage retailer. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company intends to fund operations through equity and debt financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending July 31, 2013.
AI
