We have had a great deal of positive response to the acquisition plan as well as support with the challenges we have faced. Outlined below is a question that seems to be on the minds of many, we wanted to include it with our response.
Q.) As far as the preferred shares, how is that going to work with current shareholders who have paid into the company in the hopes of this Company advancing? Now you are taking that, and giving it to someone else. We took a risk here too.
A.) We see our acquisition plan using preferred shares as an exchange for ownership in projects for Titan Oil and Gas. For those of us that are stockholders we will be receiving ownership in these projects as well. Our conception is that this be an exchange of equity as opposed to an additional debt burden. We are doing this for the sake of expanding bookable assets and improving the company’s balance sheet.
For a visual:
Preferred Shares Projects Booked
$500,000 in preferred shares $500,000 Project
$1,000,000 in preferred shares $1,000,000 Project
$1,500,000 in preferred shares $1,500,000 Project
All preferred shares will go toward building profitable booked assets. The project value will be offset by the value of the preferred shares, while the acquisition will provide income for Titan’s bottom line.
The preferred shares are going to serve several purposes for Titan stockholders. The main purpose is to bring value to the Company to directly benefit our financial statements and ultimately the market capitalization.
There are several benefits to the acquired entities and their respective owners:
• They now get to ally with an emerging Company with a huge reach to many investors and the mass media
• Titan can commit to raise capital (public equity) to expand the business or entity that is being acquired
• The owners get to have a long term opportunity where as they will get dividends, correlative to the income they bring to Titan, from the Company’s net revenues as the different projects become profitable
• The owners get a long term sales strategy on their business with an option to convert common stock at limited increments based on regulations
To be able to execute this model Titan has to form a preferred share class that will be used to exchange for the business or assets. To issue preferred shares it requires there be enough authorized capital available in advance in contrast to the conversion rate that will be set. Titan management believes that they need to be sure to increase the authorized enough to be able to aggressively acquire said projects and enough to raise additional funds to fully expand the projects. Of course the main concern for any stockholder including ourselves is to avoid any unnecessary dilution. There has to be an equal benefit for every share issued to maximize shareholder value.
Will the preferred stock ever be converted?
The preferred shares under the completed acquisition of the Crows Run Project is set to covert 10 to 1 (ten to one) where as every share of preferred stock is equal to 10 shares of common stock. (For example 1 million preferred shares are equal to 10 million common shares of stock) All preferred stock is built in with standard SEC regulated restricted periods and it is expected that even past that mandatory holding period that the beneficiaries will not want to convert to common less they have to give up their rights to any dividends that they will get in perpetuity.
Can current stockholders buy the preferred stock?
Titan management is in the process of finalizing its draft of the business plan which will outline management’s business strategies and plans to build stockholder value. This will outline management’s acquisition strategy and allow stockholders to offer feedback. Management believes it’s important to establish and acquire businesses or projects, increasing market capitalization, prior to any aggressive financing plans targeted at existing stockholders and the financial community. Once the acquisitions have been finalized it is expected the market will react in a positive way and we will gain favor from investors and by demonstrating exactly how management intends to use these proceeds. To this end management wants to formulate a secondary offering after the initial round of acquisitions has been made. It is at this time that stockholders will have the ability to purchase preferred stock.
Stockholder Comments
“I just want to say I think you are a guiding Titan in the right direction. Keep up the good work and continue the candid and honest communication.”
“Being an entrepreneur and having done something similar in the past, I agree with your approach of creating a preferred share class that will product dividends and provide cash income to those that bring production to the company. My only concern would be to ensure that this is done fairly and equitably. That is, people should be compensated fairly in this manner but only once results have been achieved and in a manner that is fair to common shareholders. I would not like preferred shares to be issued based on a promise to deliver but only once results are achieved (it that makes sense). Thank you for the opportunity to participate in this forum.”
“I think the preferred class of stock would be a good business decision. I have been very happy to see that you are against a reverse split as that seems to do more damage than good. As for going green, I’m a bit hesitant but look forward to seeing the plan in more detail, especially time frames for when you think it would become profitable. Thank you for all of your hard work and dedication to the shareholders!”
“I currently own 72,500 shares through two brokerages, and I clearly vote ‘Yes’ on all of the expansion, acquisition, preferred share issues, and ‘Green’ energy plans, name change, etc..”
“Keep up the great work!, I do plan to purchase more shares as my funds allow.”
“If there are no losses for the stockholders who currently hold stock - I am for it. I must add, I am impressed with the updates on this company.”
“I am a current (and long time stock holder of TNOG) I am sitting on a couple million shares… I say “sitting”, cause that is exactly what I am doing.. am not going anywhere anytime soon. .. ..Class A stock… very interesting, and is probably going to be a necessity to generate cash flow…. I would really like to see the whole plan .. i.e. how many shares and what is being acquired …Bottom line, Mr. Toth seems to have a handle on these processes, and I would be hard pressed to differ from his course of action .. if this came to me in a proxy, I would follow his recommendation.”
“Your preferred share plan sounds like a good way to raise money for new projects. There’s enough oil and gas out there that we can all make money.”
“I have been a TNOG shareholder since 2005 and currently hold 2 million shares. I am very pleased with the shareholder updates and the way TNOG is moving in the right direction. I wanted to give you some input, I think the creation of the preferred shares is the right way to go with out the dilution to the trading float.”
“I have read with great interest and concern the latest post on the Titan Record regarding the investment company accumulating stock in Titan. Please be aware that I hold 1.25 million shares and have absolutely NO intention of selling while Titan is on such a positive path. If Titan continues on its present course, I believe that this will be a very strong addition to my retirement and I cannot retire for a few more years (unless TNOG rockets soon)!”
“It appears to me that your attempt to determine the number of friendly shares is very important and I wanted you to have my response immediately”.
“Great job on your information dispersal, plenty of great information.”
“I am a shareholder in your company, and just wanted to let you know the job you are doing turning this company around is astounding. You are getting everything in line to make this company profitable. Congratulations on all the great work to this point. Lots more to do though. I am; however, confident we have the right President in place to keep this thing rolling.”
“I would agree to creating a preferred class of shares if it means additional projects and allows us to move in to alternate energies.”
“I say go for it, this move is a move in the right direction. Lets get some cheese rolling in.”
“I currently control 5,515,000 shares of TNOG. The shares are spread between 3 separate portfolios. I am in favor of a preferred class of stock to raise needed capital.”
“I look forward to reading your newsletters and glad that Titan is not dead. I own 600,000 shares that I bought at a considerably higher price than the stock is at now.”
“Congratulations on reviving TNOG from the dead. You’re doing a great job at the helm. Just to let you know, I support the use of preferred shares to fund other acquisitions.”
“Thanks for the frequent updates; I really believe this company can thrive in
this niche. The expansion to alternative energy is exciting. Wind, solar,
waves & hydrogen are the undeniable future.”
“It sounds like you have great plans for Titan; I hope these changes will be a rewarding experience for all of us. Keep up the great work Brandon!”
“I own 2739500 shares. I am long and strong and support the plans that have been proposed. I may be adding to my position in the coming week.”
“As a patient stockholder, I see the Company and you constantly being bashed by a couple of “Nay Sayers” on the internet with bad tastes in their mouths from the previous Titan Management. I appreciate the steady stream of information that has been coming out in the past 3-4 months. Keep it up.”
“Please keep up the flow of information. Positive is always better. I believe , as do many shareholders, that you are being truthful in what you are telling us about the future of Titan Oil & Gas. Don’t disappoint us or any potential future investors.”
“I’ve been impressed with all that you have accomplished lately and how you have been trying to keep all informed, but for the life of me, I can’t understand why the value of the stock has not moved forward!”
“The idea of acquiring federal leases on land that would yield some production at low investment cost, such as Pennsylvania, is smart. Look to US Bureau of Land Management, and the like, for similar leases.”
“I am all in as they say, go for it. A preferred stock is a good business decision. Brandon if you don’t mind me saying, great work, and thanks for turning Titan into the real deal. Positive actions lead to positive results!!”
“That sounds like a good plan as long as the shares that are sold are mandated that they must be held for x amount of time…as you are well aware further dilution of the common stock will never allow a decent price move because it takes too much volume to do it…you should try and place several blocks of the preferred/dividend bearing stock in friendly hands that will hold it and do what is needed in this situation. Keep up the good work guys…please no reverse splits or no issuance of new common shares…that would scare me away.”
“I am a relatively small investor who saw a high risk-high return potential opportunity with TNOG. I have held shares since 2005 and are not about to give them up now after all WE’VE been through. I have to also say that you have come along way in earning my trust. Therefore, I do want to go on record as supporting the plan for preferred shares.”
“I would like to see this also go through; I had Titan Oil before and sold. I lost all Interest in the company after failed reports and float kept going up into people’s pockets. I can say today that I now own titan again and plan on buying more with the way the company is going.”
“Thanks for all the information. I agree with the preferred stock decision. The last thing we need is dilution. I think you are taking titan in the right direction, keep up the good work.”
“We have been shareholders for several years (3.4 million) and have always believed this will be the best stock in our portfolio. We trust that Brandon and the directors know what is best for the company and its shareholders.”