As mentioned, it was very difficult for this company to even come close to paying back the debt that was to come due this Dec 31st. So what do we see, the fairy Godmother called Jilin extended all debt owed out to a further 5 years at the same 10% interest rate. Thats the good news (if you think it is).

Then the majority shareholder/debt holder adds a further $20,000,000 of debt on to the existing pile. Whats disturbing about this is that the proceeds are still to be used at McWaters. I still wonder where the money will come from for the Hart development.

But if you think thats bad enough, the company also announces that it will raise a further $10,000,000 in equity. Even at today's optimistic 10 cents a share, thats an extra 100,000,000 shares to be added. But Surething will be happy as that will add to the market cap of this venture. There could be more than 100,000,000 shares added depending if the deal is at a lower amount via the 15% discount to the weighted average. Which may be at 8 cents or so.

Before jumping on this new issue I would want to see the Q2 financials. As promoted, that quarter was going to be the first full quarter of production. I would want to see how much of the debt and preferreds payments sucked up any profit, if any. And what positive cash flow there may have been, if any.

Not only does the nightmare continue but it actually became worse if you can believe it. Without Jilin, this operation would have been shut down years ago. For anyone employed there, please pay off your mortgage and debts and don't buy that bigger house. You may have a further 5 years of employment at least. Better off than the minority shareholders.

Sweet Dreams