Onenergy Inc V.OEG.H

Thankful to be out of this

[mrmoribund]

To my misfortune I had, a few days ago, 90,500 shares total in two accounts. I've now dumped it all--10,000 at 4.5 cents on Friday and the rest at 7 cents yesterday (Monday).

From my very brief look at the latest news and statements--and the massive negative equity--the hope here is that they'll be able to do some kind of no-change-of-control merger with some company that wants a listing and OEG's tax losses.

While, no doubt, the tax losses will be enormous, people should understand that making that kind of merger happen is, in my experience, very difficult if not impossible.

The CRA does not like that kind of thing and the rules make it almost impossible to preserve the tax losses within a new and profitable entity.

Note that there cannot be a change of control. Also, any entity merging with OEG would have to, I think, be in a similar business. It's not like some profitable private company can be the 80% of a new merged company and then keep the tax losses. In a situation like that the tax losses would magically disappear.

If OEG were to be 50.1% of a merged entity (i.e., no change of control) then the 49.9% merger partner would have to share in OEG's massive losses and negative equity.

It's hard for me to see any small profitable entity agreeing to marry into such a mess--quite aside from the need to finance all of OEG's problems while getting only a 49.9% interest in the result.

For the sake of OEG shareholders I hope I'm all wrong and the stock goes up. But I'll be very surprised if this ends up in anything like a happy ending.