Replies to post #112253 on MMEX Resources Corp (MMEX)

[jmjjw]

The MMEX STRONG operate with less than zero clue...

Toxic "lenders" are not banks, or any sort of conventional, legitimate lender. Toxic lenders of the nature that Mad J. deals with are more akin to loan sharks, conducting a form of quasi-legal organized crime.

Mad J. participates with the toxic "lender" to convert "debt" (created out of thin air) into cash, at huge margins (>3X) for the toxic lender. MMEX's retail "investors" pay for this in the form of massive dilution.

There are no conditions on the use of proceed from these "loans," their are only conditions on how they are paid - in the form of huge discounts, market-based ratchets, and warrants providing anti-dilution protection to the toxic "lender."

The notion that toxic "lenders" are even remotely similar to "banks" reeks of ignorance. The toxic "lender" will generate at least $1.8-million in cash in return for lining Mad J.'s pocket with $550K, and in fact already netted $50K in up-front fees for the "loan."

Mad J. will spend this cash out of the SG&A line for his own personal use - financing travel, entertainment, etc., that comes out in the form of consulting fees, and other use of funds transferred into his private shell, Maple. This is fully documented in the SEC filings, for those able to read.

Since MMEX has no form of corporate governance, no independent directors, no audit committee, and no internal financial controls, Mad J. does whatever he wants with your money. The "lender," the GSC mafioso, have absolutely zero control over how Mad J. uses the money.

True, but the lender can. He can't do what ever he wants with the money. If i got a mortgage for a house, can I spend it on a Lamborghini? Of course not.

Rules apply to loans. Especially with gigantic loans like this one. Its a lot of money. No bank just gives that much money away. Doesn't happen. Ever.