No word about what happened to the multi-million dollar subsidiary. No word about the sudden 1 for 1000 reverse split. Nothing. Nada. Zilch. Unless of course you happened to look at the SEC filings. Funny how when stocks are being pumped you can find press releases galore but when there's no money to be gained by the insiders, you can hear crickets as preparations are underway for the next scheme.
So now the old shareholders are zeroed out and the insiders issue themselves a nice chunk of 3.5 million shares of free-trading S-8 stock. What's really hysterical here is that, as we speak, the shills on the bulletin boards are trying to convince dupes that there is only 60,000 of free trading stock and ignoring the fact that over 300,000 shares traded yesterday.
And now, "Ta Da", NGMC is in the energy business. Just like that, Darryl went from being qualified as a CEO of a direct market business to being qualified as the CEO of an energy company. And they've purportedly acquired 10 Producing Gas Wells in Knox County, Kentucky (according to yesterday's press release) for $500,000. Let's look at that deal. They first gave the world an inkling of this acquisition back on November 22 when in their 10-Q filing, the company said,
"The Company has acquired an option to acquire its first properties in Knox County, Kentucky for $1,575,000, and is actively trying to raise the capital it will need to complete that acquisition."Uh.......was there a clearance sale? How did this deal go from $1,575,000 to $500,000? That's one.
Now the statement in the 10-Q says they are looking for funding, which is understandable since that same filing claims that the company is over $4.5 million in debt and has a working capital deficit of almost $900,000. But then where did NGMC get the $500,000? There's certainly nothing in the filings that suggest the company raised any money. That's two.
Now let's look at the acquisition, which effectively turns the operation of Knox Gas, LLC into a subsidiary of NGMC. This company has been passed around kids. Over the last decade, the acquisition of Knox Gas, LLC has been hyped by Endeavour International Corporation, Touchstone Resources, and Cygnus Oil and Gas who simply walked away from its ownership, giving it to Touchstone. All three previous owners of the company recorded financial losses through their ownership of Knox Gas. That's three.
Yahoo reports that there are 11.47 million shares outstanding with a float of 6.46 million. We thing it's more by now but we have a tough time justifying even an $11 million market cap for a company that is $4.5 million in debt and with assets that lose money.
The shills on the message boards are in place hyping away; the insiders have their free-trading stock; and, the propaganda machine has woken from the dead. We see this setting up as something bad for the general public and we think that plans are in place to start an email/touting promotion campaign any minute now. It wouldn't be Darryl's first time at this stunt. He's done it with this company before during its previous incarnation as Next Generation Media and he's involved with another sad story, Seawright Holdings (SWRI), which by the way, looks like it's setting up for another scheme in the near future.
Be careful out there.
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