To spare you grief and losses, this land came from TAMO to CEC North Star, then to OCTX. This is from TAMO's latest 10Q statement filed with the SEC.
Material Contracts
On May 31, 2012, the Company reached a binding agreement with CEC North Star Energy Ltd (ÇEC North Star”) of Calgary Alberta to transfer the oilsands leases it holds in the Manning Area in escrow pending a series of events being completed. CEC North Star will issue shares in escrow North Star common voting shares at the agreed value per shares issued from Treasury of Thirty Two Dollars ($32.00) Cdn. for a total of 5,062,500 shares. Due to family relationships between CEC North Star Energy and the Company, Mr. Tighe abstained from voting on the transaction. Due to a common board position on both companies, Mr. Hilekes abstained from voting on the transaction. North Star will be responsible for rental costs of the Manning lands going forward. Tamm acknowledges and consents to CEC transferring the balance of the farm in agreement that would apply to the P&NG leases, to North Star. The GORR in place on the Tamm leases will remain the obligation of Tamm under this arrangement The transaction has two key requirements to close – the put/call – 1. TAMM is to re-domicile to Alberta based on a shareholder vote at the next AGM and required documentation, regulatory requirements being completed. 2. Post the re-domicile, approval of the majority of the TAMM shareholders of the transaction at the same AGM would be required. Upon signing this agreement, Mr. Hilekes is appointed to the Board of Directors of CEC North Star and Mr. Tighe is appointed as COO of CEC North Star.
And why did TAMO do this, to come to a point where it sold five million shares for thirty two dollars to CEC North Star? Another extract from their 10Q:
NOTE 2 – GOING CONCERN MATTERS
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed consolidated financial statements for the three months and inception to date periods ended June 30, 2013, the Company has incurred losses of $15,126 and $81,571,623, respectively. In addition, as of June 30, 2013, the Company had a working capital deficit of $391,112, and no revenue generating operations. These factors, among others, indicate that the Company may be unable to continue as a going concern.
So TAMO loses more than $81 million trying to develop this land, transfers the same land to CEC North Star with a few million shares sold for nothing, then CEC gets Octagon 88 to vend in, and Octagon 88 becomes the new pump vehicle.
The SEC filings show that this predecessor company incurred losses[ of more than $81 million dollars without being able to extract a single drop of oil. And now it is back under a new corporate name. BEWARE./b]
