Hi everyone, Been busy lately and catching up o
Post# of 2009
Posted On: 10/21/2014 5:38:56 PM
Hi everyone,
Been busy lately and catching up on all things Xun.
I was reading the 10-Q and I want to be sure I am getting the right understanding.
Per the 10Q:
“On September 5, 2014, a complaint (the “ Complaint ” ) was filed against the Company in the Superior Court of Connecticut, Judicial District of Danbury (the “ Court ” ) by Equity Capital Ventures, Inc. ( “ ECVI ” ) for the Company ’ s failure to pay $1,834,935 in debt obligations (the “ Debt ” ) which ECVI had acquired from 11 persons (the “ Debt Assignors ” ) through the execution of Debt Claim Purchase Agreements.
The Debt Assignors consist of creditors of the Company including insiders of the Company that voluntarily assigned all or a portion of their receivable from the Company to ECVI subject to approval of a court. By a Stipulation between the Company and ECVI, the Company has agreed to settle the Debt in reliance on the 3(a)10 exemption from the Securities Act of 1933 ’ s registration requirements pending a fairness hearing before the Court. The Stipulation, if approved by court order, provides for the issuance of shares of the Company ’ s common stock to ECVI (the “ 3(a)(10) Stock Issuance ” ) for resale by ECVI, resulting in sale proceeds to ECVI of approximately $2,038,818. ECVI shall retain $203,883 of the sale proceeds and shall transfer and deliver the $1,834,935 balance to the Debt Assignors.”
On the surface, sounds bad. However, I took a look at the article posted by OSU on iHub (great find and thanks for posting) and this how I take it:
1. Companies voluntarily surrendered debt to Equity Capital Ventures Inc. who in turn filed a lawsuit against Xun Energy. The lawsuit stipulates that shares are to be issued to Equity Capital Ventures Inc. for the value of the debt, who in turn gives the debtors their value in shares less commissions.
2. Xun Energy settles the suit, issues the shares. This eliminates debt from the balance sheet.
3. (Here is the part I need clarification) this means that all these debts are considered paid now that the debtors own those shares.
Did I understand it right? If so, does this mean that outstanding invoices for services (such as CM Research LLC, Slaven Drilling & Well Services, and Vencedor Energy Partners) can begin services for the company in which they were waiting payment?
Thanks.
Been busy lately and catching up on all things Xun.
I was reading the 10-Q and I want to be sure I am getting the right understanding.
Per the 10Q:
“On September 5, 2014, a complaint (the “ Complaint ” ) was filed against the Company in the Superior Court of Connecticut, Judicial District of Danbury (the “ Court ” ) by Equity Capital Ventures, Inc. ( “ ECVI ” ) for the Company ’ s failure to pay $1,834,935 in debt obligations (the “ Debt ” ) which ECVI had acquired from 11 persons (the “ Debt Assignors ” ) through the execution of Debt Claim Purchase Agreements.
The Debt Assignors consist of creditors of the Company including insiders of the Company that voluntarily assigned all or a portion of their receivable from the Company to ECVI subject to approval of a court. By a Stipulation between the Company and ECVI, the Company has agreed to settle the Debt in reliance on the 3(a)10 exemption from the Securities Act of 1933 ’ s registration requirements pending a fairness hearing before the Court. The Stipulation, if approved by court order, provides for the issuance of shares of the Company ’ s common stock to ECVI (the “ 3(a)(10) Stock Issuance ” ) for resale by ECVI, resulting in sale proceeds to ECVI of approximately $2,038,818. ECVI shall retain $203,883 of the sale proceeds and shall transfer and deliver the $1,834,935 balance to the Debt Assignors.”
On the surface, sounds bad. However, I took a look at the article posted by OSU on iHub (great find and thanks for posting) and this how I take it:
1. Companies voluntarily surrendered debt to Equity Capital Ventures Inc. who in turn filed a lawsuit against Xun Energy. The lawsuit stipulates that shares are to be issued to Equity Capital Ventures Inc. for the value of the debt, who in turn gives the debtors their value in shares less commissions.
2. Xun Energy settles the suit, issues the shares. This eliminates debt from the balance sheet.
3. (Here is the part I need clarification) this means that all these debts are considered paid now that the debtors own those shares.
Did I understand it right? If so, does this mean that outstanding invoices for services (such as CM Research LLC, Slaven Drilling & Well Services, and Vencedor Energy Partners) can begin services for the company in which they were waiting payment?
Thanks.
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The fault-finder will find faults even in paradise. -Henry David Thoreau