Happy New Year everyone!
Just another new year to follow the stories of the demise of BGMO.
On the legal side of things, we know the following:
1. BGMO is currently "in default" for filing its annual return with the Nevada Secretary of State. This was due at the end of this past July.
2. Even if they filed the return on time, the resident Nevada agent for service "resigned" in mid-August.
3. The has been no call for an annual meeting of the shareholders as required by the Delaware Corporations Act.
On the accounting side of things, we know the following:
1. The accountant prepared "compiled" statements are now over a year old with no statements for fiscal 2012 completed nor even interim statements for any part of 2013.
2. The accountant advised that every statement made by BGMO prior to January 2012 regarding raising funds offshore and making investments could not be "substantiated".
3. The President of BGMO has "affirmed" that the statement made by the accountant regarding the prior raising of funds and making investments is accurate.
4. Despite promises to provide further financial updates to satisfy the SEC, OTC Markets and the shareholders, no new statements have been released.
On the business side of things, we know the following:
1. Notwithstanding the promise of profits from an offshore affiliate, there is no third party proof of the profits being generates and repatriated to BGMO for investment.
2. The corporation has not issued a press release in nearly half a year regarding the purported revenues and profits from a "high yield investment program".
3. A deal with Vistagen was announced but despite extensions was never closed as BGMO has not delivered any cash. It appears as though VSTA is close to being dead.
4. The SEC has placed a cease trade order on BGMO. It is understood that they have received substantial documentation as to the undeclared issuances of shares, the questionable accounting practices, misleading fundraising and investment promises and so forth. The likelihood of qualifying for trading again in virtually nil.
So, what does the crystal ball say for 2014?
Unless, BGMO can actually find an SEC qualified accounting firm to do an audit, it is most likely that the company cannot issue added shares to even pay for the audit bill!
If the SEC wants to act aggressively in hunting down penny stock pump and dump operations, BGMO may just be under the radar and the total dollar value of security losses is minor. However, if you add up the collateral damage on the civil side, BGMO could be in for a rough ride.
