Hristina Beeva

Maxwell Resources Inc. (OTC:MAXE), Buried Gold and Little Cash, Still Wooing Investors

by Hristina Beeva October 24, 2012
Building a website in the 21st century is not the stuff of breaking news, but Maxwell Resources, Inc., (OTC:MAXE, MAXE message board) seems to rely on beautiful graphics to entice investors. Somewhere under that picturesque land, gold, silver and energy resources are awaiting their day. MAXE124.png

The site seems to be devoted to the New Mexico deposits in the company, some 170, 000 acres of much promise and little true research potential, given that the company holds a little over 200 dollars in cash, according to its latest 10-Q SEC filing.

The company is a little more than two years old, trading as Mericol, Inc. since May last year, but with a different business model, 3D printing and prototype service. In its initial filing, the company stated it was an entity without revenues. At that time, the company's CEO was a 29-year-old Moldovan, one Sergui Pojoga, who received 7.5 million shares for $7,500.

While the riches remained in the ground, the shares of Mericol, now renamed Maxwell Resources Inc., started to multiply, starting with 2.26 million shares for a mere $22.600 and expanding, in a forward stock split, into more than 26 million shares, which may be added to the currently outstanding 54 million shares.SNRV124.png

The large number of stocks in the hands of anonymous investors may be a threat for future aggressive promotion where those investors could sell their cheaply acquired shares and quickly depress the price. The big change started for the company this summer, when young CEO Pojoga renounced his post-split shares. The position went to Philip Dias, a former real-estate expert, with a salary of $80,000 per year. 

But most significantly, MAXE was taken over from the inside by Sun River Energy Inc. (OTC:SNRV) by paying in $500 000 for the New Mexico land and issuing around 2.5 million pre-split shares with all the possibility of Sun River Energy Inc. spilling those shares onto the markets in case of a promotion.

Sun River Energy Inc. is cash-rich with $399,000, yet still taking only operating losses, while its partner, MAXE, has no operating income and only minor expenses.

The companies seem to be riding the commodity market craze that sent gold above $2000 per ounce and rely on the promises of new findings to create hype for a potential stock pump. Sun River Energy Inc. also kept several valuable and profitable resource properties, while selling the less valuable New Mexico site to MAXE, which is taking too much care touting the prospects.

While MAXE hardly shows any movement yet, the SNRV stock spiked and lost more than 95% of its value, and a lawsuit for artificially inflating the stock is still pending.

Comments 1

1. Guest
October 25, 2012, 01:14PM

Quotes Good article. even if I did get sucked into the past months pump. and got caught in the dump.

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