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Anyone watching this one? IMAKE you seeing this. Isn't this your baby?
kywee
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I've been watching it for a couple years, but have not jumped back in.
NaturalResources
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vote for a 25-1 R/S looming... Stay away from this one right now IMO but do your own DD. I own free shares, and plan to hold through the R/S, but I probably won't be buying anymore for the foreseeable future.
IMAKEMONEY
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quote:Originally posted by Zsartell: Anyone watching this one? IMAKE you seeing this. Isn't this your baby?
IT WAS,GOT OUT AT .06, STARTING TO LOOK GOOD NOW,JMO
kywee
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I agree. The way this moves there will probably be a nice bounce here soon, I just would like to have a better understanding on the impact of the R/S because that has a strong influence.
CashCowMoo
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quote:Originally posted by kywee: I agree. The way this moves there will probably be a nice bounce here soon, I just would like to have a better understanding on the impact of the R/S because that has a strong influence.
why do they need to do a RS? that isnt good..i thought this was a pretty stable company. has maintained itself well .01-.10 range for a long time...good for traders.
Zsartell
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Yes, I am unsure of why they would need a R/S either. This looks like a fairly stable company.
CashCowMoo
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anyone got the most current O/S A/S and float information?
kywee
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Well, I tried to jump in here for a chance on the bounce but ST won't let me buy it...
kywee
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.023 x .024 bouncing some here.
kywee
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.026
Zsartell
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An Open Letter to the Shareholder’s of American Energy Production, Inc.
July 5, 2007
An Open Letter to the Shareholder’s of American Energy Production, Inc.
Dear Shareholders:
Since December of 2002, American Energy Production, Inc. (“AMEP”) and or the “Company” has issued approximately 452,000,000 shares of common stock and raised approximately $7,400,000 in capital. The capital has been utilized to fund operations, acquire equipment and obtain oil and gas leases. As a result, the market capitalization of AMEP as of July 3, 2007 is approximately $18,000,000.
As disclosed in recent public filings, AMEP has successfully transferred from being a Business Development Company with portfolio companies to an oil and gas operating company with consolidated wholly-owned subsidiaries. However, AMEP has no ability to obtain additional capital to carry out its business plan and requires a restructuring of its common stock. Accordingly and after careful consideration, the Board of Directors has recommended a one-for-twenty five Reverse Stock Split of the common stock of the Company. The Company has provided a detailed question and answer format in the attached Proxy Statement but in summary, believes that this action potentially will:
1. Increase shareholder value in the long-term. 2. Increase the appeal of our common stock to a greater number of investors and funds. 3. Provide the Company liquidity for future growth and acquisitions. 4. Provide shareholders with improved trading liquidity. 5. Increase the ability of AMEP to attract and retain Key Executives and Employees. 6. Assist the Company with a move to a national exchange listing such as the NASDQ Small Cap or American Stock Exchange.
Based on initial shareholder response received by the Company, there are three primary issues among shareholders that appear to be significant.
1. Why a reverse split of 1 for 25?
The Board of Directors selected the ratio taking into account a number of factors including:
* The trading price and market of our common stock. * The trading price of peer companies. * Facilitate in achieving the items discussed above under (A) through (F).
2. Why keep authorized shares of common stock at 500,000,000 after the reverse stock split?
The Board of Directors believes that retaining the authorized shares of common stock at 500,000,000 will provide the Company with the ability to timely raise capital, timely complete future acquisitions and mergers and attract and retain key executives and employees. The requirement for the Company to request shareholder approval for issuances of common stock is not practical, could impede opportunities due to timing and would be costly to the Company in relation to both currency and employee time inefficiency.
3. Why are the 3,500,000 shares of Preferred Stock owned by Charles Bitters not subject to the reserve stock split?
First, the Preferred Stock agreement with Mr. Bitters specifies that in the event of a restructuring of the AMEP shareholders equity, the Preferred Stock is not subject to any adjustment. In 2002, Mr. Bitters loaned the Company $464,005 of funds and the Company had no ability to repay these funds. Additionally, as of January 4, 2004, accrued interest of $64,527 was owed to Mr. Bitters by the Company and the Company had no ability to repay the interest. As a result, on January 5, 2004, the Board of Directors approved the issuance of 3,500,000 designated Series A preferred stock to Mr. Bitters in exchange for the conversion of $464,005 of indebtedness owed to him. In connection with the conversion of the note principal, Mr. Bitters forgave the related accrued interest totaling $64,527 in a separate transaction on the same date.
The Preferred Stock has right to convert into common stock at a ration of three (3) shares of Common Stock to one (1) share of Preferred Stock. Assuming that Mr. Bitters would elect to convert, the total shares of common stock issued would be 10,500,000. Based upon a purchase price of $464,005 (excluding $64,527 of interest forgiven), the 10,500,000 shares would represent a purchase price of common stock $0.044 per share. As a comparison, when the Preferred Stock was granted to Mr. Bitters, AMEP was selling common stock to investors at $0.01 per share.
The Company encourages each of its shareholders to read the attached Proxy Statement including the Question and Answer section as you evaluate the proposal and the Board of Directors recommends a yes vote for the proposal.
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