Each one in plain English, with the numbers worked through for a shareholder.
8 May 2019bankruptcy or receivership● NeutralMajor
The bankruptcy court dismissed the Chapter 11 case on March 5, 2019, so the company continues as a going concern under new management: Allan Holms became CEO, President and Chairman and William Wood became CFO, and offices moved from Helena to Spokane, WA. A March 27, 2019 Nevada judgment ruled Allan Holms the rightful owner of the 26,235,000 shares formerly held by Val Holms and lifted the restraining order, ending that ownership dispute (claims against former directors remain pending). The company says bankruptcy-related legal costs of about $1.5 million consumed most of its prior cash, that its last SEC financial filing covered September 2017, and that it is reviewing what reporting to resume.
On December 7, 2018 the company filed for Chapter 11 bankruptcy in Nevada and keeps operating as debtor-in-possession. Its auditor DMT resigned December 6, restructuring officers David Hindman and Richard Robbins (firm APS Services, $150,000 retainer) were appointed, and employee Karen Midtlyng's employment ended December 3 though she stays as a director and secretary. The company warns shareholders may receive little or nothing and that their shares may be cancelled, but no plan has been confirmed yet.
On July 27, 2018 the Audit Committee, after its investigation of Eagle's allegations, concluded that six quarterly reports (March 2016 to September 2017, excluding the quarters of December and the 2016 year-end) can no longer be relied on because of misstatements about $250,000 described as held in escrow for a contemplated Eagle transaction. It also found that the transaction in the January 9, 2018 8-K did not occur. The 2016 annual report was not affected. This resolves the investigation opened in April 2018, though the Eagle rescission demand is not stated as settled.
9 May 2018asset acquisition disposition▲ GoodMajor
On May 4, 2018 the company bought an overriding royalty interest in what is currently 25 oil and gas wells in the Niobrara-DJ Basin (Colorado/Wyoming) for $1 million, effective January 1, 2018, again through EnergyNet. About $220,000 is held in escrow for royalties accrued since the effective date. This continues the EnergyNet buying program started in December 2017 and is much larger than those purchases.
On April 2, 2018 Eagle Private Equity, the company's lender and Series A preferred holder, told the company it believed it had been misled in the transactions described in an 8-K filed January 9, 2018 (not in the provided history), and that it now seeks to rescind them. The company disputes any misrepresentation, and its Audit Committee is investigating. This is a new dispute with Eagle, which had been a rescuer in the 2016 control fight.
Between December 5 and 14, 2017, the company completed nine purchases of royalty interests in the Eagle Ford basin (Texas) and Haynesville basin (Louisiana) for a combined $320,410, bought through the EnergyNet.com online mineral-rights auction site. These are new assets in different regions from its earlier Bakken, Montana, Idaho and Texas holdings; the filing says buyers on EnergyNet generally take on title risk. The attached exhibits are the standard EnergyNet auction forms and a press release (whose text is not in the provided filing).
BAKKEN RESOURCES INC shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
26 July 2016capital raising announcement▼ BadMajor
On July 20, 2016 a group led by Allan Holms (half-brother of Val Holms, now described as the former CEO) tried to take over the company's Helena offices using a stockholder consent signed by 24 holders, including Val Holms (26,235,000 shares). The company obtained temporary restraining orders in Montana and Nevada, with hearings set for Aug 1 and Sept 21, 2016. The takeover triggered Eagle Private Equity's rights under its May 2016 loan, and Eagle put and converted $600,000 of loans into 600,000 Series A Preferred shares carrying votes equal to 60 million common shares. That is a large new voting block, which dilutes the voting power of existing common holders; the outcome of the control dispute is unresolved.
On April 20, 2016 the audit committee engaged DeCoria, Maichel & Teague, P.S. as new auditor, which effectively dismissed MaloneBailey (auditor since 2010). The filing reports no disagreements and no adverse or qualified opinions from MaloneBailey, and says the engagement is subject to the new firm's client acceptance procedures.
On July 1, 2015 the board ratified restating the audited 2013 annual report, so statements in the original 10-K on the matters covered should no longer be relied on. This follows the Dec 2014 10-Q/A and the independent investigation begun after the audit committee chairman resigned from the board (March 2015 filing). The company says it is not aware of any material impact of the investigation on the original 10-K, and the auditor will withhold audit sign-off until it reviews the investigator's report.
BAKKEN RESOURCES INC shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
