MARKET HEADLINE: SHORT SELLING BY OCTOBER

Lodestar Investment Hldgs Corp
#1
Business Profile:

Lodestar Investment Holdings Corporation (LIHC) was originally incorporated on January 3, 1974 as a mining and natural resources exploration company under the name Lodestar Mining Corporation. The Company was engaged in the development of several gold and chromite mining claims in Masbate, Cebu, Negros Occidental and Palawan. In October 1991, due to unsuccessful ventures in the development of mining claims, the Company ceased its exploratory mining operations. In August 2000, its Board and stockholders approved the change in the Company's corporate name to its present one and primary purpose from a mining company to an investment holding company. The Securities and Exchange Commission approved the changes on October 3, 2003.

As an investment holding company, LIHC is evaluating various business opportunities that are viable, growing, and profitable business ventures. On September 26, 2008, the Board of LIHC authorized LIHC to enter into a Heads of Agreement with Abacus Consolidated Resources and Holdings, Inc. (ABA) and MUSX Corporation (MUSX) for the joint acquisition by LIHC and MUSX of all the outstanding and issued shares of Abacus Coal Exploration and Development Corporation (ABACOAL). LIHC and MUSX likewise entered into an Agreement for Joint Investment whereby the investment parameters for such investment into ABACOAL are set forth. Under the Agreements, MUSX shall own 55% of the issued and outstanding capital stock of ABACOAL, while LIHC shall own the remaining 45%. On May 31, 2009, LIHC executed a Memorandum of Agreement with Oriental Vision Mining Corporation to undertake exploration and development activities of the coal properties of ABACOAL.

As of December 31, 2009, LIHC has no commercial operations, but is in the process of acquiring and raising additional capital to finance its planned future business expansion.

Source: SEC Form 17-A (2009)


Management’s Discussion and Analysis (MD&A) or Plan of Operations.

Plan of Operation

Currently, the Company is awaiting the issuance and release of the Coal Operating Contract for Development and Production (COC-DP) of its Abacoal Project. Delays in government processing of this COC-DP necessitated a minor revision of the Company’s targeted commencement of the operations of the Project.

The Board of Directors and Management of the Company is confident that once the COC-DP is issued and released full operation of the Project can immediately be realized, considering that all the requirements for this are in place with the appointment/designation of Oriental Vision as the operator for this Project.

Upon commencement of the operations of the Project and/or identification of other profitable Projects for the Company, the capital restructuring and fund raising activities approved by the Board of Directors and shareholders of the Company may be implemented.

By way of background, on September 24, 2008, the Company entered into a Heads of Agreement with Music Semiconductors Corporation (“MSC”) and Abacus Consolidated Resources Holdings, Inc. (“ACRHI”) for the joint acquisition by the Company and MSC of all issued and outstanding shares of stock of ABACOAL, a subsidiary of ACRHI. The Company and MSC have likewise entered into an Agreement for Joint Investment whereby the investment parameters for such investment in ABACOAL were set forth. Under the same agreement, MSC will own 55% of the issued and outstanding capital stock of ABACOAL while the Company will own 45% of ABACOAL.

ABACOAL is a company engaged in the commercial exploration and development of coal and is the Assignee (whereby ACRHI is the Assignor) of a Coal Operating Contract over a 7,000-hectare property located in Tago and Marihatag, Surigao del Sur (“Coal Project”). Due diligence over the coal property is being undertaken for purposes of verifying the reserves and studying the financial viability of the Coal Project, which per the appraisal conducted by Cuervo Appraisers, Inc., is valued at approximately P2.7 billion.

On May 21, 2008, the Board approved resolutions authorizing the Company to amend the Agreement for Joint Investment dated September 24, 2008 between the Company and MUSX Corporation (the new name of MSC). The subject amendment will result in the assignment to the Company of MUSX’s 55% interest and participation in the Abacoal Investment subject to the payment of the following:

(1) P12 million by way of reimbursement of expenses made by MUSX in the Abacoal Investment upon the signing of the amendment;

(2) a second tranche of P10 million by way of reimbursement of the remainder of expenses and payments made by MUSX in the Abacoal Investment, payable on or before December 31, 2009 or on such later date as may be agreed upon by the parties, with the option to convert this payment to equivalent number of new shares to be issued by the Company to MUSX based on the closing price of the Company’s shares on the date of the exercise by MUSX of the option; and

(3) 0.25% of the gross coal price per ton based on FOB loaded to vessel, payable within five(5) days from receipt of payments by the Company therefore, as MUSX royalties in the Abacoal Investment during the first five years of operations. Advanced royalties may be agreed upon on a discounted basis depending on the initial operations of the Abacoal Investment.

On May 31, 2009, the Company executed a Memorandum of Agreement with Oriental Vision Mining Philippines Corp. to undertake exploration and development activities of the coal properties of Abacus Coal Exploration Development Corporation over which the Company has controlling stake. Oriental Vision shall pay the Company a royalty fee of Eight Percent (8%) of gross coal price per ton based on FOB loaded to vessel payable within 45 days from receipt of payment by Oriental Vision.

On September 14, 2009, the Board of Directors of the Company approved the issuance of shares by way of private placements in favor of Renato L. Reyes and Ramon l. Abad, Jr. The issuer will issue one hundred million (100,000,000)1 LIHC shares out of the unissued and unsubscribed portion of its authorized capital stock at the price of Fifty and .05 Centavos (P.505) per share per share or a total consideration of Fifty Million Five Hundred Thousand (P50,500,000.00) for the following business purposes:

a) To enable the Company to pay its financial obligations to Abacus Consolidated Resources Holdings, Inc. (ABACON) constituting partial consideration for the purchase of 100% of the shares of Abacus Coal Exploration Development Corporation (ABACOAL) as provided under the Heads of Agreement that the Corporation executed with ABACON.

b) To allow the Company to expand its investments

c) To permit the Company to enter and finance new businesses

d) For working capital and costs of the private placements

And on November 6, 2009, the Company and Messrs. Renato L. Reyes and Ramon L. Abad, Jr. executed the Investment and Subscription Agreements to effect the private placement transaction.

Further, at the same meeting, the BOD discussed the implementation of the Stock Rights Offering in the next capital increase. The decision was reached considering the need of the Company to raise at least Fifty Million Pesos (P50, 000,000.00) in cash in the soonest possible time. The contemplated SRO in the new capital increase will enable qualified shareholders to purchase shares at better prices or even at the par value of P.10 while giving the company an opportunity to offer and distribute more shares from said capital increase.

On Nov 6, 2009, the BOD during its special meeting approved the following:

1. Proposed reduction in the par value of the shares of stock of the Company from P1.00 to P0.10 per share, resulting in a stock split of ten shares for every one shares issued. A share buy-back program was also adopted, which will depend on the Company’s retained earnings and the market price of the Company’s shares under such terms and
conditions to be determined and set by the BOD.

2. Proposed increase in the authorized capital stock of the Company from P100.00 million divided into 100 million shares at P1.00 par value per share to P300.00 million divided into 3 billion shares at P0.10 par value per share.

3. Delegation to the Board of Directors of the power and authority to identify and secure equity investments from subscribers, implement share swaps, and undertake share issuances at such subscription price(s) and under terms and conditions to be determined by the Board with a waiver of the requirement to conduct a rights or public offering of the shares

4. Issuance of shares of stock from the proposed capital increase through preemptive stock rights offering. The preemptive stock rights offering shall be implemented on a 1:1 proportion, i.e. one share held by qualified stockholders entitled the said stockholders to subscribe to one share under the offering. The stock rights offer price shall be at par of P0.10, representing the reduced par value of the shares at the expected
time of the stock rights offering, or at P1.00 if the stock rights offering happen at the time prior to the reduction in the par value of the shares.

The above resolutions were subsequently ratified in the latest shareholders meeting of the Corporation held on December 2010.

On November 3, 2010, the Company executed a Revised Heads of Agreement with ABACON for the Merger of ABACOAL into the Company with the Company as the surviving corporation and ABACOAL as the absorbed corporation. The Company shall acquire the Coal Project and all the other assets and liabilities of ABACOAL by and through a merger of the Company and ABACOAL. By virtue of said merger, the Company shall issue two hundred fifty million (250,000,000) new common shares at a par value of Ten Centavos (P 0.10) and an agreed issue value of Ninety Centavos (P 0.90) to ABACON.

Source: Q12011 Financial Report
Management’s Discussion and Analysis for the Interim Period Ended March 31, 2011

Revenues

The Company did not earn any revenue during the first three - month period ended March 31, 2011 and 2010 since it has not undertaken commercial operations.

Operating Expenses

Operating expenses decreased by P 0.34 million or 10.3% from P 3.28 million in March 2010 to P2.52 million in March 2011. The decrease is attributable mainly to lower management fee.

Net Loss

As a result, after deducting minimal interest income from regular savings account, the Company posted a net loss of P2.94 million for the period ended March 31, 2011 versus net loss of P3.28 million for the same period in 2010.

Source: Q12011 Financial Report


Attached Files Image(s)
   
Reply
#2
Am I seeing the real thing? Part of the most active stocks today. Hopefully AT, you can get out na. Big Grin
Reply
#3
Possible distribution is occuring 91-94...the new base after 87-90Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
Reply
#4
...post transferred to AT thread

Ollie
Reply
#5
Wrong thread kindly place in its proper thread... Thank you.Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
Reply
#6
ang ganda ng chart niyo sir arthas... hahaha yummy yan!
Reply
#7
^^...is apa rin to, walang avatar, ikulong yan! Big Grin
Pls don't follow me....I'm lost too! hehe
Reply
#8
Star 
hello
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
Reply
#9
(06-10-2011, 11:40 AM)Ollie Wrote: ^^...is apa rin to, walang avatar, ikulong yan! Big Grin
Tama at gamitin yung 100T napanalunan nya pang pyansa sa kanya Big GrinBig GrinBig Grin

Reply
#10
sayang to kahapon hindi na done at .88.. ngayon im scared to buy above 90.. hihi.. magdradrawing kaya c jap ng cup n handle?
when GOD steps in, MIRACLE happens.....

It's more fun in FOREX!!!

Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)