Written by Jasir Jawaid
Omega Commercial Finance Corp. is "aggressively interviewing" candidates to appoint as directors, officers and advisory board members after actions by "bad actors" hamstrung its ability to utilize capital markets to raise capital the traditional way.
Becoming a nonreporting public company in October 2018 allowed Omega Commercial to restructure its capital structure and address massive derivative debt that was cultivated overtime by what it described as "bad actors." This debt originated from various holders of promissory notes the company issued in the period following the 2008 credit crisis.
When the debt from the promissory notes became due, the company decided to repay the debt with its common stock. However, the "bad actors" noteholders in question used the guise of the convertible shares feature to sustain their cost basis and convert their notes into massive amounts of Omega Commercial's common stock and profit from the stock with no intention of helping support liquidity in the company. This caused massive dilution and "knee capped" the company's ability to tap the capital markets.
Omega Commercial said it intends to regain full reporting status by filing a Form 10 with the SEC, which it anticipates accomplishing by mid-2021.
This article was published by S&P Global Market Intelligence on the S&P Capital IQ Pro platform.
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