Replies to post #7384 on Houston Natural Resources Corp (HNRC)

[TheHungryHippo]

ummmm....Good Morning..and welcome to the board

WNTR did not acquire that company for 225 million dollars ...

WNTR authorized 45 million preferred shares at a stated value of 5$ per share.(225 million$)

Which is kind of like a voucher to purchase.

Essentially WNTR is guaranteeing that by trading the company shares for an interest of that company--that the person who sold their interest in Encryption solutions will be able to sell their preferred shares in the future in order to equate to a cash value that will satisfy WNTRs purchase price of the interest in the company..

for instance You own 20% of Encrpytion solutions, WNTR gives you 1 million preferred shares at stated value of 5$. Now lets say in the future the share price is .20 cents and you want to sell your shares.. Then you will sell your preferred shares at .20 cents but you will have to sell 5x the amount you own(.20 cents x 5 = 1 dollar) you would have to sell 5 million shares to get your money. (When the preferred share owner sells the shares it converts them to equate to the stated amount.)

Get it ? Thats part of the reason why we believe the share price will be much higher because its almost impossible to liquidate those preferred shares below .01 cent.