Replies to post #24435 on Lithium Exploration Group Inc. (fka LEXG)

[alexbh2285]

They do not own lithium mines nor rights to mine lithium.

You have to go through old 10-Ks but they let the Clinton mining rights in Canada expire in 2011, the Argentina rights expire in 2012 and the Alberta rights were also lapsed or sold according to the 10-Ks.

They currently have the right to sell, and in some cases exclusive, the SonCav technology (which for several reasons appears to be BS in my opinion - mainly the lack of resources devoted to this and the constantly delayed plans for commercialization but also the presentation showing basically the ability to produce steam compared to "older equipment") but even if not BS as in the 2017 10-K they published on 9/28/17 they "currently have no research and development activities" and other than the trademark "Lithium Exploration Group" they "do not have any other intellectual property." Those are quotes from the 10-K. So they are basically a sales and distribution arm for this unproved technology and they have no resources to support this (they have two employees and when they shipped a SonCav unit early on it got into a truck accident, took a long time to find and longer to repair - read the history - it is a joke).

The other thing they have, other than a massive amount of dilutive death spiral convertible debt relative to the market cap, is a 3% royalty on the White Top oil field in Louisiana. Although they may get revenues from this, it was odd for several reasons - mainly that they say they did it to have revenue streams to support SonCav development when they could have just used the cash they spent which is a much higher number than any royalty even if wildly successful will be for the first few years, they know very little about oil exploration (they are in a lawsuit with their last purchase as the operators never drilled for oil) and they finance at 100%+ cost (the convertible financing - I have shown the calculations for this is many older posts) so a real company or hedge fund would have been able to buy this asset cheaper if it was worth what they paid for it.