I think the cancellation of the RS was big news for us as shareholders, however it doesn't allay the current concerns about the pps, which is why you see no aggressive buying currently like you did right after the share letter.
We were in a two day lull in conversions when the no R/S news came, so you saw no kick back on the buying. So what is hanging over the head of MMEX at the moment? I think it is the future of conversions.
Remember that the stated purpose of the CrownBridge purchase agreement was to pre-pay some of the notes, and provide operating capital for the next several months. This was in my mind good news, because it was at a better rate (20% discount instead of 35%+). It more importantly mean't that some of the current conversions would not have occured. This is backed up in the S1 by not only them stating it, but also that the JSJ notes were going to have a priority of pre-pay from those puts.
When the QB notified MMEX that they were in danger of de-listing to Pinks, it put a halt on any puts being made to draw money from CrownBridge. This in my opinion is why you saw them take the $83k note (presumably for the road?), because they couldn't draw on CrownBridge.
This is also why I think they drew on the remaining money available from Vista and why the increase of 220 mil occurred. As others have said here, it would be nice to get some confirmation that this money was being used for the road and or the final engineering work, or even to make the payment to JSJ.
At any rate, I think the fact that the CrownBridge puts have been unavailable has put MMEX in the lurch. I think they thought they would be able to maintain the QB requirements and as a result alleviate some future dilution and not need more notes, which has now not materialized. We now have the about 270mil in conversions with another 25mil possibly coming up mid March.
That is the main concern at the moment, and even if we get news and it gets us back to the QB requirements in time to stay on the QB, (which means we can keep and begin to use the puts) we still have had to see a few notes come to maturity and thus we have a new round of conversions (because we couldn't use CB like we would have starting in February).
What it means to me as a shareholder is this: We need that financing news, or something material about it progressing, more than ever. Because we need the volume to absorb these notes. It would also be ideal to meet the QB requirements and retain access to the CrownBridge puts so that we need not take more high discount rate notes and can hopefully pay that $83k note and a few others down early to avoid new conversions in the future. If we get news, we get both those things. If we don't then BMIC will be around for at least another 2 months.
This is where Hanks will have to show his mettle as a CEO to stay on course with the project and not have it cause more delay. I am hopeful that the $385k they pulled form Vista (which is my guess on the 220mil) is going towards getting that news out.
We were in a two day lull in conversions when the no R/S news came, so you saw no kick back on the buying. So what is hanging over the head of MMEX at the moment? I think it is the future of conversions.
Remember that the stated purpose of the CrownBridge purchase agreement was to pre-pay some of the notes, and provide operating capital for the next several months. This was in my mind good news, because it was at a better rate (20% discount instead of 35%+). It more importantly mean't that some of the current conversions would not have occured. This is backed up in the S1 by not only them stating it, but also that the JSJ notes were going to have a priority of pre-pay from those puts.
When the QB notified MMEX that they were in danger of de-listing to Pinks, it put a halt on any puts being made to draw money from CrownBridge. This in my opinion is why you saw them take the $83k note (presumably for the road?), because they couldn't draw on CrownBridge.
This is also why I think they drew on the remaining money available from Vista and why the increase of 220 mil occurred. As others have said here, it would be nice to get some confirmation that this money was being used for the road and or the final engineering work, or even to make the payment to JSJ.
At any rate, I think the fact that the CrownBridge puts have been unavailable has put MMEX in the lurch. I think they thought they would be able to maintain the QB requirements and as a result alleviate some future dilution and not need more notes, which has now not materialized. We now have the about 270mil in conversions with another 25mil possibly coming up mid March.
That is the main concern at the moment, and even if we get news and it gets us back to the QB requirements in time to stay on the QB, (which means we can keep and begin to use the puts) we still have had to see a few notes come to maturity and thus we have a new round of conversions (because we couldn't use CB like we would have starting in February).
What it means to me as a shareholder is this: We need that financing news, or something material about it progressing, more than ever. Because we need the volume to absorb these notes. It would also be ideal to meet the QB requirements and retain access to the CrownBridge puts so that we need not take more high discount rate notes and can hopefully pay that $83k note and a few others down early to avoid new conversions in the future. If we get news, we get both those things. If we don't then BMIC will be around for at least another 2 months.
This is where Hanks will have to show his mettle as a CEO to stay on course with the project and not have it cause more delay. I am hopeful that the $385k they pulled form Vista (which is my guess on the 220mil) is going towards getting that news out.
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