RE:RE:oil producerreceived this from mark on Wednesday
Thanks for your email and continued support in Simba Essel Energy Inc.
www.simbaenergy.ca Simba chose the shares for debt option instead of doing a private placement and raising the money publicly at 5 or 6 cents including warrants. Simba would then have had to pay back the funds owed to EGME. Instead the Company chose to pay EGME with shares, there are no warrants attached and Simba’s CEO and Chairman (insiders) now own approximately 2% more shares in Simba Essel Energy.
Significant insider ownership is always positive because those shares are in what we consider “friendly hands” and are subject to a 4 month hold. Plus EGME has not sold or traded a single share since their participation in previous financings.
There are several reasons with specific implications why the company has been trying to clean up its balance sheet and reduce its overall debt. Since the joint venture partnership was signed with EGME in 2015, Simba has reduced its outstanding debt from approximately $3 Million to the current level which is now around $800,000.
The acquisition for a producing asset based in Jordan (and potentially Egypt) is being conducted by EGME not Simba Essel Energy. There will be more details and information pertaining to this project once the transaction has been finalized.
I'm sorry that I am unable to elaborate anymore at this time but there will be further clarification when the asset is officially acquired by EGME and any implications related to Simba will be disclosed.
I can say that there are currently no plans for a financing or private placement and the Company does not intend to dilute the shares any further at this time.
Best regards,
Mark