|Inergetics' Quarter Shows Strong Progress by New Management|
|By A.J. Deniken, Contributor|
|Wednesday, 28 November 2012 13:46|
This may be further evidence that new management is focused and performing upon their promise to run the business efficiently and effectively. The release included some previously unannounced positive events that occurred in the quarter.
The first disclosure that should be noted is that an entity controlled by Michael C. James, CEO of Inergetics made an investment in the company for $114,000 in the form of an unsecured promissory note which included an origination fee of 570 shares of Series G preferred Stock which converts into 142,500 shares of common stock. This is a very important development showing Mr. James’ commitment to the Company while only occupying the CEO position for four months. This suggests Mr. James has confidence in the execution of the business plan he is implementing, and he is on schedule to produce the results he expects in the first quarter, of which is has previously spoken.
Since Mr. James has taken the CEO position, he has acquired over $500,000 in new funding for the company to ensure that the operating cost of the company are covered. More importantly for shareholders of the Company, on October 2, 2012 Inergetics paid off, in full, both debentures owed to Asher Enterprises, Inc. totaling $186,960. These Asher debentures contained potentially toxic covenants that could have super-diluted the Company’s stock wiping out most of the equity value for current shareholders.
These financial events depict a management team that is fulfilling their promise to revamp this Company into a revenue generating, valuable investment for the shareholders. While we now have the evidence that management is performing on the financial side, we should see the product side of the business to begin to show tangible improvement soon. In a Q&A video interview posted last month, Mr. James alluded to several business initiatives he expect to begin showing success in the first half of 2013, including new product lines, the beginning and completion of the studies on their formulation for dialysis patients, and an expansion of their sales channels for the scientifically proven Surgex protein product that is currently available online. This new management team has made significant progress on all fronts in a short amount of time. It is expected that the value of the Company will improve quickly as these initiatives begin to bear fruit over the next couple of quarters.