MI can reapply to become a registered company, which will be expensive and require ongoing 10K and 10Q filings costing up to $150,000 per year. For 16 years MI has not been able to raise funds, except through borrowing. The reason for this was explained in my last Newsletter. I personally have provided much of MI’s operating capital until I was forced into a Chapter 11 reorganization in 2008. Before MI decides to re-register as a public company, it will need a funding commitment from some source to provide a substantial amount of capital. Lack of funds is precisely why MI was unable to keep its filings current. Before any funding source would make a financial commitment, the potential investor would want to see MI’s balance sheet. You can see the balance sheet for June 30, 2015 clicking here. You will note that as of that date, MI’s liabilities were $16,875,225 with little assets. Debt was rising at $1.8 million per year, primarily due to accruing interest. Today, liabilities exceed $22 million. Until funding is available to cover the cost of 10Q and 10K filings, registration, and operations. MI will remain a private company, unless it is forced into liquidation by a creditor.
A number of FM stockholders have asked me whether it is possible to exchange some or all of their MI shares for FM shares. Based on an exchange of market value for market value, the exchange rate would be over 300 shares of MI stock for one share of FM stock. FM might be willing to accept an exchange rate of 100 to 1 if enough MI stockholders are interested in participating.
If you are interested, email me at: firstname.lastname@example.org stating the number of shares of MI stock that you would like to exchange if given this opportunity.
Please note “This is not an offer to exchange stock but rather an inquiry as to the interest you may have in exchanging some or all of your MI shares for FM shares. Such an exchange would require approval by the SEC and Directors of Freedom Motors.”
A message to all of you from Freedom Motors CEO Dr. Subhash Paluru can be viewed by clicking here.
Other FM related developments
An agreement was signed with ONEH2, Inc. to produce 26,000 Rotapower® engines operating on hydrogen. This application is for material handling equipment such as forklifts, etc., where zero indoor emissions is a requirement.