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NERG Suspended Over Preposterous Takeover Claim

Trading in shares of Nu Tech Energy Resources is halted following a buying and selling frenzy attributable to a phony buyout announcement

May 22, 2016: Those who believe in Santa Claus got caught in another obvious pump and dump scheme, this time on shares of Nu Tech Energy Resources, Inc. (NERG). Bag holders should seriously consider hari kari as self-punishment for getting caught in this mess.

The SEC slammed the brakes on trading in shares of NERG Friday morning, but not before hundreds of millions of shares were dumped by insiders, reaping ill-gotten profits of well over a million dollars.  According to the regulator's announcement,
The Commission temporarily suspended trading in the securities of NERG because of questions that have been raised about the accuracy and adequacy of information in the marketplace about the company’s operations and the company’s recent public announcements concerning an unsolicited tender offer.
We wonder what took the SEC so long.

It has been long established that NERG is nothing more than a share selling scheme, having been subjected to an extended email promotion campaign during November 2015 as well as other pump and dump efforts back when the company was known as Ecoemissions Solutions, Inc and trading under symbol ECMZ.  False claims of patent holdings and empty promises of an upgraded listing, served to underscore the actual intent of those running the show.  Yet, the company trumpeted that it had successfully conned its way out from under the dreaded Skull and Crossbones--OTCmarkets often slaps a "Caveat Emptor" tag on a company under questionable promotion-- just two weeks before the phony buyout was announced. That designation was reapplied on Friday.

   » Related: The SEC Just Suspended My Stock! Now What?

NERG Closing Prices
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At the time of that announcement, NERG was trading at three tenths of a penny, so 2.5 cents would have been a handsome premium. Prior to the lifting of the "Caveat Emptor" tag, shares traded by appointment in hundredths of a penny increments. The premeditated plan to defraud is visible by looking at NERG's recent closing prices. At least two days before the buyout was announced, action in the stock was already getting a boost.

The premise of the buyout was preposterous from the git go. On May 10, 2016, an imaginary Russian entity-there's the first clue--purportedly offered 2.5 cents for each of the company's almost 43 billion common shares. When considering the 10 million preferred shares, the imaginary buyout would value the company at well over $2 billion. Latest financials provided by the company stated assets of $5.7 million over liabilities of $2.7 million, and no--as in zero--revenues, hardly justifying a such a generous buyout offer. And naturally, no information was given about the proposed acquirer, nor can one find any.

The second clue that shenanigans were afoot is in the company's May 10th  press release revealing the pretend buyout, specifically,
NuTech Energy's attorneys have evaluated the offer and have concluded that their evaluation of the offer points to it being in fact a bona fide offer with the ability to close. The terms are not yet known for the potential transaction, but the Company intends to update shareholders as developments evolve.
When did the company do all this due diligence to determine that the buyout was in fact bona fide? The deal was just announced! And why was this statement necessary? Was it that obvious there would be skepticism and if so, why not wait until the deal was done? And if the deal is for 2.5 cents per share, what terms don't we know?

The sham was quite transparent to anybody who thought before reacting. It is further evidenced by NERG's press release of the very next day, which stated,
After conferring with attorney's and advisors, NuTech's management has decided to accept the offer and proceed with the closing process of the proposed acquisition.
How in the world did NERG consult with its attorneys and advisors and make a $200 million dollar decision in just one day? The answer is, of course, that they didn't. The fix was in and NERG insiders knew the SEC might act, so the press releases, which were nothing more than fraudulent puff pieces designed to defraud the public, needed to be banged out one after another. And sure enough, yet another press release was issued on the third consecutive day. This one screamed "scam".
NuTech Energy Resources, Inc. (OTC: NERG) has received information directly from TechnoInvest Oil and Gas giving clarification regarding the proposed buyout of NuTech's common shares. According to NuTech, TechnoInvest has advised CEO Kevin Trizna that a detailed proposal with agreed upon terms will be transmitted to the company early next week....
...The Company has no definitive time frame for a formal response to the TechnoInvest's closing package, but intends on turning it around as soon as possible with the intention of closing the earliest possible date.
Now wait a second: NERG received clarification regarding the proposed buyout and that clarification consisted of the information that a detailed proposal would be received in the following week. So in other words, the clarification was not clarifying at all. Furthermore, the company did not yet have a proposal so in fact, NERG did not receive a buyout offer. Finally, the company has no definitive time frame for a response so in fact, a pretend decision to accept the pretend offer has not been made.

The third press release clearly revealed that the first two press releases were lies. This is surely the reason that the SEC threw up the stop sign.