58. After the North Carolina Company closed on the ARC transaction and received payment from ARC, the North Carolina Company and a Delaware corporation, Orpheum Property, Inc. (“Orpheum”), discussed the possibility of a reverse merger. 59. Natan Holdings, as the second largest shareholder of the North Carolina Company, was induced to agree to the merger based on representations and statements made by Mr. Burton. 60. Before the merger, Mr. Burton represented that the North Carolina Company was producing 100 barrels of oil per day. 61. On January 21, 2021, Mr. Burton, as the General Manager of the North Carolina Company, emailed Mr. Melikhov, Mrs. Burton, and others, claiming that he was “restoring full production” at the wells purportedly owned or leased by the North Carolina Company. 62. A true copy of this January 21, 2021, email is attached as Exhibit 10. 63. In the email, Mr. Burton represented that the North Carolina Company had “about 1500 barrels [of oil] in the tanks throughout the field,” with “441 barrels [of oil] in the [Bower Property (this capitalized term is defined in paragraph 108 of this Complaint)] production tanks treated and ready to ship... [and] another 212 barrels [of oil] needing treatment.” 64. Mr. Burton further represented that the North Carolina Company, on average, was producing 74 barrels of oil per day and “should have [about] 100 barrels a day by merger time.” 65. Contrary to Mr. Burton’s representations, the North Carolina Company did not produce oil or gas in amounts claimed by Mr. Burton 66. In early 2021, the North Carolina Company merged with Orpheum and became KLMKH, Inc., a Delaware corporation (“KLMKH”). 67. Following the merger, DVE was the largest shareholder in KLMKH, and Natan Holdings was the second largest shareholder in KLMKH. 68. Following the merger between the North Carolina Company and Orpheum Property, Inc., KLMKH was liable for all obligations to ARC.