posted
I used to play PMHJ back in the day, it's been dead for a while, now the CEO is talking about O&G and just put out a shareholder letter on the subject last Thursday. I believe the O/S is under 1 billion and news might come out this week concerning this new direction.
According to these unverified posts, keep an eye on this one for the week...
PMHJ CEO Update-Venture into Oil/Gas/Biodiesel.....
7/26/06 Update
Dear Fellow Shareholder,
I am writing this update as a recap of the last ten months. I am sorry for the delay in writing and getting this update to you. At this juncture I feel it is necessary to be as clear and direct as possible regarding the company’s current condition and my position in all this as well.
Since Prime’s inception as a public company in 1997, the company’s primary method for raising capital has been through the 504 Exemption. As of last year, there have been numerous changes that have affected Primeholdings’ ability to raise capital from the market using the 504 Exemption. Due to these changes, investors who have worked with Prime in the past are now refusing to participate in 504 related transactions. Many transfer agents adapted to these changes by not handling any transfers in the manner they had been done in the last decade. This is why over the last ten months PMHJ has been unable to raise more than $2,000.00 (two-thousand) through the 504 Exemption. Needless to say $2,000.00 over a ten-month period is not enough to run a company, grow it, or even keep it alive. Prior to this ten-month period, management personnel received only $250.00 in monthly compensation - the minimum salary required by our payroll and benefits outsourcing company in order to qualify to receive health benefits.
The fact that on top of exposing ourselves personally for the benefit of the company we didn’t even receive reasonable compensation makes it that much harder to tolerate. Approximately 94% of all monies raised over the last few years went to fund our subsidiary companies. That still did not mean that the business plans were properly capitalized to execute our business plans. Target was unique in that it had revenues since day one and could cover to a large degree most of its overhead from cash flow. Keeping up with the millions of dollars in growth (PMHJ’s commitment) was another matter.
So, where do we go from here? After considering the reality of the past and present, what is next for PMHJ? I have come to only one very positive conclusion after many months of investigation; oil and gas leases and alternative energies (biodiesel). Here is where there are many opportunities that provide tremendous returns for PMHJ. These present opportunities provide for “exploration and developmental” oil and gas finds that could potentially provide returns for at least (30) years. I have seen prospects with ranging annual return projections of 30 to 78 percent. No “wildcatting.” Best of all, we don’t need additional infrastructure, employees or development costs. More importantly, the investors of the past and present have become much more interested in oil and gas opportunities. Gas and oil has tremendous appeal to investors because of the recent economic developments in worldwide oil prices. This is why I feel that gas and oil has the best opportunity to be impervious to most investment restrictions and regulations. Investors will more likely overlook all the new changes because of the potential long-term returns. I feel this direction represents the best opportunity for PMHJ. I feel we have much more than a fighting chance. I am prepared to undertake this new challenge and I strongly believe gas and oil represents the best possible vehicle to our success.
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