Replies to post #20114 on Sierra Resource Group Inc. (fka SIRG)

[Warmy]

Haven't been wrong yet.

The loan of July 17th, 2012 was the last loan they were allowed to take by Asher without increasing the A/S count. That loan and the previous loans were contingent on a number of estimated shares in reserve based on a higher PPS.

Two things contributed to the halt of Asher giving loans to SIRG.

1) SIRG began taking loans from other toxic lenders aside from Asher which tied up even more shares in reserve.

2) the PPS fell significantly after the loan on July 17th, 2012 requiring more shares to reserve than SIRG had to reserve.

Since there were (are) mulitple toxic loans in place, many more shares were needed to reserve for those loans as a stipulation of the loan agreements. Or as SIRG put it...

As a result, the number of required Reserve
Shares exceeded the number of authorized but unissued shares of the Company’s Class A Common Stock, and the Company became
noncompliant with contractual requirements.

But not to worry now. The A/S has been significantly increased and SIRG can start up the toxic ATM machine again.