Messa Energy Holdings, Inc. (OTC:MSEH) holds a record of failure to begin with – the first business of this entity failed some time ago. Now they have emerged with a clean record after going through a merger, changing the people behind the wheel, and securing some capital.
But can the a successful business be built on the failures of the past? Those who don’t believe in bad karma might find it interesting the new company had no capital of its own when they started. Shortly after going public, they finalized the convertible notes offering, adding nearly $2 million to their bank.
The supposedly strong cash position and constant updates on exploration of properties are the main lures for investors. But the fact that Messa keeps wasting the money on promotions and paid Northbound Marketing Group Ltd nearly $365 thousand for coverage is a bit concerning, don’t you think?
Other than that, investors should be aware of the fact Messa will require up to $10 million (as stated in their last 10-k) to follow their plans. Looks like they’ll have to intensify that capital raise program.
