Dubious & furiously frequent related party transactions Have a look at the Empire 13D filed earlier this year. It makes for disturbing reading Empire 13D
In September last year the company ‘modified’ its loan agreement with Energy Evolution Fund (whose only real position is bizarrely Empire and is run, equally bizarrely, by Phil Mulacek, the Empire Chairman and his son Sterling Mulacek). Presumably this was agreed by all sides over a discussion at a Mulacek family barbecue?
Part of this was granting a new warrant to buy 500,000 shares in Empire at $5. Also extending the second loan by 18months to June 30, 2023 and the Fund agreeing to get paid interest on the loan in Empire stock at a fixed price of $5 per share IF THEY OPTED FOR IT. Nice giant gift of free optionality huh?! They had to exercise $6.5m of the convert they owned to get this but the entire conflicted Empire / EEF setup is about using Empire warrants and stock to generate highly amplified mark-to-market performance in EEF whose track record is then used to raise real money
Ask yourself why any reputable operators would involve themselves in such a dubious, complex and furiously frequent series of highly complex debt, equity and warrant transactions between a listed company and a bunch of related parties they also control (including PIE aswell as EEF, amongst others)? If you can figure out a reason that isnt of great concern to Empire shareholders then please post it below