Post by islandtime1 on Dec 1, 2005 22:08:56 GMT -6
I told them he was useing them.( But you know how they responded to that!) Now LW Is attacking entouage...I told the 66."How does it feel to be used! LOL(I'm really pissed)
New Lee Webb Article RE: Entourage!
« Thread Started on Today at 20:08 »
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Entourage tries to gather loose ends in SEC filing
2005-12-01 21:01 ET - Street Wire
Also Street Wire (U-CMKX) CMKM Diamonds Inc
by Lee M. Webb
Entourage Mining Ltd., a Vancouver-based company trading on the OTC Bulletin Board, has filed its financial statements for the third quarter ending Sept. 30 with the U.S. Securities and Exchange Commission (SEC). The cash-strapped company's financial results may be of less interest than the notes to the unaudited statements.
Among other things, in the notes to the financial statements Entourage tries to gather up some loose ends regarding recent Saskatchewan property deals involving CMKM Diamonds Inc., Urban Casavant's massively diluted and recently revoked pink sheet woofer.
The numbers
The raw financial results for Entourage, headed by former McDermid St. Lawrence broker Gregory Kennedy and backstopped by chairman Paul Shatzko, are unimpressive and, like many OTC-BB companies, the Howe Street creation is flagged with a going concern warning.
Entourage, which reports in Canadian dollars, had a meagre $5,957 in cash and total current assets of only $102,641 as of Sept. 30. Entourage's current liabilities rang in at $168,415, leaving the company with a working capital deficit of $65,774 at the end of the quarter. The company's accumulated deficit stood at approximately $2.4-million.
The third-quarter results take into account a small private placement of 295,000 flow-through shares priced at 20 cents per share and 550,000 units priced at 18 cents per share, each unit comprising one share and one warrant exercisable at 30 cents per share, that was completed on Sept. 22.
The financing netted approximately $156,000 for financially challenged Entourage just before the end of the quarter.
The B.C. Securities Commission (BCSC), like other Canadian regulators, no longer provides the investing public with access to the identity of participants in private placements, so there is no way of knowing who anted up the cash in that small financing or, barring a filing error, any other private placement for that matter.
Included in the very limited information that the BCSC still makes available, however, is the jurisdiction in which the participants in private placements reside and the total dollar value raised in each reported jurisdiction.
In the Sept. 22 Entourage financing, the 290,000 flow-through shares with a reported value of $59,000 were purchased by a participant or participants residing in B.C.
In addition, 266,667 of the units priced at 18 cents per unit were issued in B.C. for $48,000.
The remaining 283,333 units from the Sept. 22 financing were whisked offshore, with 150,000 units costing $27,000 ending up in the secretive offshore enclave of Jersey and the other 133,333 units valued at $24,000 landing in Switzerland.
Other financings
Subsequent to the end of the third quarter, Entourage completed two other private placements, one a rather quiet affair completed just days after the end of the quarter and the other a noisier deal that was finally wrapped up on Nov. 18.
As disclosed in the notes to Entourage's financial statements, on Oct. 5 the company completed a private placement for just over 1.27 million units priced at 13 cents per unit, each unit comprising one share and one warrant exercisable at 29 cents per unit for two years.
An amended BCSC filing submitted on Nov. 15 discloses that all of the 1.27 million units in the Oct. 5 financing, valued at $165,750, were whisked offshore to Switzerland.
Coincidentally, on Oct. 6 Entourage, normally a languid OTC-BB stock, notched a record volume as more than 1.5 million shares changed hands and the stock price nearly doubled to 20 U.S. cents.
Interestingly, while an Oct. 13 SEC filing indicates that Entourage issued a news release on Oct. 5 regarding the private placement of 1.27 million units, Stockwatch's database does not contain a copy of that release, nor can it be found on other financial sites such as Yahoo! Finance or the OTC-BB website.
In marked contrast to the quiet Oct. 5 financing, the private placement that finally closed on Nov. 18 was the subject of a number of news releases that were closely watched by CMKM's dwindling but still vocal band of cult-like followers as well as shell-shocked investors stuck in Mr. Casavant's revoked pink sheet promotion, some of whom have reluctantly come to the conclusion that the wild cultish fantasies accomplished little other than lighten their bank accounts.
On Oct. 10, just five days after closing the quiet offshore financing, Entourage announced that it was in negotiations to issue seven million units priced at 15 U.S. cents per unit to raise $1.05-million (U.S.).
On Oct. 20, the Entourage issued a news release disclosing that it had entered into three Saskatchewan property agreements in which CMKM figured rather prominently, hence the interest from CMKM's cult-like Internet followers.
Entourage noted that the property agreements were contingent upon the company completing the $1.05-million (U.S.) financing by Oct. 28.
When Oct. 28 rolled around, Entourage reported that it had received cheques totalling $1.05-million (U.S.) and the financing had been closed in escrow until the cheques cleared.
It was not until Nov. 18 that Entourage disclosed that the cheques-in-the-clearing financing did not work out as planned. Reportedly, one investor did not come up with the cash and Entourage ended up with only $800,000 (U.S.).
With the injection of $800,000 (U.S.), Entourage reportedly now has a less than staggering working capital surplus of approximately $527,000.
Notwithstanding the trimmed financing, Entourage announced that the Saskatchewan property agreements consisting primarily of shares-for-claims would proceed.
As previously reported by Stockwatch, CMKM is supposed to receive a total of 50 million Entourage shares under the terms of three property agreements, only two of which were directly negotiated with Mr. Casavant's dead pink sheet play.
Stockwatch raised a number of questions regarding the Saskatchewan property deals, some of which were at least partially addressed when Entourage filed copies of the agreements with U.S. and Canadian regulators.
In the wake of those filings, Stockwatch raised some further questions about seeming oddities in the agreements, including the status of the purported 1,087 claims covered in the largest of the three deals.
Among other things, some of the issues raised by Stockwatch are further addressed in the notes to Entourage's third quarter financial statements.
The notes
In the largest of the three property deals negotiated with Emerson Koch's numbered Saskatchewan company, Entourage will reportedly receive an 80-per-cent stake in 1,087 claims known as the Smeaton property in exchange for approximately 33.89 million shares.
Under the terms of that agreement, 30 million of those shares will be issued to CMKM and will form part of a planned liquidating distribution of CMKM's assets to its shareholders.
Early on, Stockwatch questioned just why Mr. Koch directed Entourage to issue that wad of shares to CMKM.
According to the Smeaton property agreement filed on Nov. 21, Mr. Koch's apparent largesse was actually a matter of contractual obligation.
The Nov. 21 filing indicates that under the terms of a previous Aug. 1, 2003, Smeaton agreement and purported 2004 amendments with Mr. Casavant's pink sheet dog, Mr. Koch's company was required to give the 30 million Entourage shares to CMKM.
Oddly, as Stockwatch pointed out, the original Aug. 1, 2003, agreement between CMKM and Mr. Koch's company does not contain any provision under which Mr. Koch is obligated to pay CMKM any amount in cash or kind under any circumstance and the purported 2004 amendments to that agreement have never seen the light of day in any public disclosure.
In the notes to its financial statements, Entourage addresses that matter again, claiming that the 30 million shares are being issued to CMKM on the advice of Mr. Koch that they are "intended to settle debts, liabilities or obligations" between his company and Mr. Casavant's dead pink sheet promotion.
The nature of those debts, liabilities or obligations remain a mystery.
In any event, neither the 30 million Entourage shares reportedly earmarked for CMKM nor the remaining 3.89 million shares for Mr. Koch's company have yet been issued.
Stockwatch also raised the issue of the status of the 1,087 claims comprising the Smeaton property, pointing out that hundreds of those claims were set to expire in the absence of filing required technical work reports or a cash deficiency bond with Saskatchewan Industry and Resources.
As reported by Stockwatch, a random sample of 10 of 318 claims that could lapse at the end of October revealed that no assessment work had been filed on any of the sampled claims and cash deficiency bonds had only been submitted for two of those claims.
Evidently Entourage did not have a clue about the exact status of the Smeaton claims when it inked the yet to be consummated deal.
"The company is in the process of determining the exact status of these claims and believes that most, if not all, of the claims have sufficient assessment work performed on them to keep the claims in good standing with the Government of Saskatchewan until January of 2007," Entourage discloses in a note to its financial statements.
The foundation for Entourage's belief that enough assessment work has been performed to maintain the claims in good standing is another mystery.
Entourage further notes that it has "formally requested" Mr. Koch's company "to immediately register its prior work as assessment work on these claims so that it can determine which claims are in good standing, which require further work to maintain in good standing and which (if any) are not in good standing."
It remains to be seen how that will turn out.
Meanwhile, if and when the 30 million shares are issued to CMKM, they will have no voting rights until they are distributed to the company's shareholders.
"Entourage does not know when, if at all, the 30,000,000 shares will be delivered to the CMKM shareholders," the company cautiously advises.
In a second deal, CMKM is assigning Entourage its right under a defaulted agreement to acquire a 50-per-cent interest in four prospective uranium claims known as the Hatchet Lake property owned by Rick Walker's TSX Venture company United Carina Resources Corp. in exchange for 15 million shares.
CMKM reportedly intends to distribute those 15 million shares to its shareholders, too.
As disclosed in the notes to Entourage's financial statements, those 15 million shares have not been issued yet, either. And, once again, Entourage disclaims any knowledge about "when, if at all," those shares will be distributed.
Under the third Saskatchewan property agreement, Entourage will issue five million shares to CMKM in return for a reported 36-per-cent interest in 337 claims known as the Forte property owned by John E. Dhonau's Nevada Minerals Inc., a private company.
CMKM claims that it has already paid Nevada Minerals for that 36-per-cent interest, but the accuracy of that claim cannot be confirmed from the pink sheet company's shoddy public disclosures. Indeed, what is known is that at least as of May 10 CMKM was still on the hook for $2-million (U.S.) to Mr. Dhonau's company.
In any event, the five million Entourage shares under the Forte deal have not yet been issued.
Interestingly, there are no reported strings upon the yet to be issued five million shares that form part of that agreement and Entourage does not offer any disclaimer with respect to the ultimate fate of those shares.
Given CMKM's remarkably dismal record when it comes to meeting its commitments and following through with announced plans, Entourage's notable lack of comments or disclaimer regarding those five million shares may invite questions about whether Mr. Casavant's pink sheet woofer still intends to distribute the full 50 million Entourage shares.
Meanwhile, Entourage's share price, which notched a 52-week high of 70 U.S. cents in the wake of the Oct. 20 announcement of the Saskatchewan deals, has been under some pressure recently.
On Nov. 30, Entourage's stock price dipped as low at 16 U.S. cents before making up some ground in late afternoon trading. Interestingly, according to a Nov. 30 SEC filing, Mr. Kennedy chipped in with some modest support as the price was taking a bit of a beating, acquiring 10,000 shares at 17 cents per share.
Trading was relatively flat on a volume of 160,000 shares as Entourage closed at 21 U.S. cents on Dec. 1.
The saga continues.
Comments regarding this article may be sent to lwebb@stockwatch.com.
(Further information regarding CMKM Diamonds and associated companies can be found in Stockwatch articles dated Oct. 21, 2003; June 22; Sept. 16 and 24; Oct. 1, 15 and 20, 2004; Feb. 11, 14, 18, 22 and 23; March 1, 3, 4, 7, 14, 15, 16 and 21; June 6, 8, 9, 10, 13, 14, 15, 16, 17, 20, 21, 22, 29 and 30; July 1, 4, 6, 12 and 13; Aug. 2, 5 and 9; Sept. 7, 12, 27 and 30; Oct. 24, 26 and 31; and Nov. 7, 11, 22 and 25, 2005.)
Island
New Lee Webb Article RE: Entourage!
« Thread Started on Today at 20:08 »
--------------------------------------------------------------------------------
Entourage tries to gather loose ends in SEC filing
2005-12-01 21:01 ET - Street Wire
Also Street Wire (U-CMKX) CMKM Diamonds Inc
by Lee M. Webb
Entourage Mining Ltd., a Vancouver-based company trading on the OTC Bulletin Board, has filed its financial statements for the third quarter ending Sept. 30 with the U.S. Securities and Exchange Commission (SEC). The cash-strapped company's financial results may be of less interest than the notes to the unaudited statements.
Among other things, in the notes to the financial statements Entourage tries to gather up some loose ends regarding recent Saskatchewan property deals involving CMKM Diamonds Inc., Urban Casavant's massively diluted and recently revoked pink sheet woofer.
The numbers
The raw financial results for Entourage, headed by former McDermid St. Lawrence broker Gregory Kennedy and backstopped by chairman Paul Shatzko, are unimpressive and, like many OTC-BB companies, the Howe Street creation is flagged with a going concern warning.
Entourage, which reports in Canadian dollars, had a meagre $5,957 in cash and total current assets of only $102,641 as of Sept. 30. Entourage's current liabilities rang in at $168,415, leaving the company with a working capital deficit of $65,774 at the end of the quarter. The company's accumulated deficit stood at approximately $2.4-million.
The third-quarter results take into account a small private placement of 295,000 flow-through shares priced at 20 cents per share and 550,000 units priced at 18 cents per share, each unit comprising one share and one warrant exercisable at 30 cents per share, that was completed on Sept. 22.
The financing netted approximately $156,000 for financially challenged Entourage just before the end of the quarter.
The B.C. Securities Commission (BCSC), like other Canadian regulators, no longer provides the investing public with access to the identity of participants in private placements, so there is no way of knowing who anted up the cash in that small financing or, barring a filing error, any other private placement for that matter.
Included in the very limited information that the BCSC still makes available, however, is the jurisdiction in which the participants in private placements reside and the total dollar value raised in each reported jurisdiction.
In the Sept. 22 Entourage financing, the 290,000 flow-through shares with a reported value of $59,000 were purchased by a participant or participants residing in B.C.
In addition, 266,667 of the units priced at 18 cents per unit were issued in B.C. for $48,000.
The remaining 283,333 units from the Sept. 22 financing were whisked offshore, with 150,000 units costing $27,000 ending up in the secretive offshore enclave of Jersey and the other 133,333 units valued at $24,000 landing in Switzerland.
Other financings
Subsequent to the end of the third quarter, Entourage completed two other private placements, one a rather quiet affair completed just days after the end of the quarter and the other a noisier deal that was finally wrapped up on Nov. 18.
As disclosed in the notes to Entourage's financial statements, on Oct. 5 the company completed a private placement for just over 1.27 million units priced at 13 cents per unit, each unit comprising one share and one warrant exercisable at 29 cents per unit for two years.
An amended BCSC filing submitted on Nov. 15 discloses that all of the 1.27 million units in the Oct. 5 financing, valued at $165,750, were whisked offshore to Switzerland.
Coincidentally, on Oct. 6 Entourage, normally a languid OTC-BB stock, notched a record volume as more than 1.5 million shares changed hands and the stock price nearly doubled to 20 U.S. cents.
Interestingly, while an Oct. 13 SEC filing indicates that Entourage issued a news release on Oct. 5 regarding the private placement of 1.27 million units, Stockwatch's database does not contain a copy of that release, nor can it be found on other financial sites such as Yahoo! Finance or the OTC-BB website.
In marked contrast to the quiet Oct. 5 financing, the private placement that finally closed on Nov. 18 was the subject of a number of news releases that were closely watched by CMKM's dwindling but still vocal band of cult-like followers as well as shell-shocked investors stuck in Mr. Casavant's revoked pink sheet promotion, some of whom have reluctantly come to the conclusion that the wild cultish fantasies accomplished little other than lighten their bank accounts.
On Oct. 10, just five days after closing the quiet offshore financing, Entourage announced that it was in negotiations to issue seven million units priced at 15 U.S. cents per unit to raise $1.05-million (U.S.).
On Oct. 20, the Entourage issued a news release disclosing that it had entered into three Saskatchewan property agreements in which CMKM figured rather prominently, hence the interest from CMKM's cult-like Internet followers.
Entourage noted that the property agreements were contingent upon the company completing the $1.05-million (U.S.) financing by Oct. 28.
When Oct. 28 rolled around, Entourage reported that it had received cheques totalling $1.05-million (U.S.) and the financing had been closed in escrow until the cheques cleared.
It was not until Nov. 18 that Entourage disclosed that the cheques-in-the-clearing financing did not work out as planned. Reportedly, one investor did not come up with the cash and Entourage ended up with only $800,000 (U.S.).
With the injection of $800,000 (U.S.), Entourage reportedly now has a less than staggering working capital surplus of approximately $527,000.
Notwithstanding the trimmed financing, Entourage announced that the Saskatchewan property agreements consisting primarily of shares-for-claims would proceed.
As previously reported by Stockwatch, CMKM is supposed to receive a total of 50 million Entourage shares under the terms of three property agreements, only two of which were directly negotiated with Mr. Casavant's dead pink sheet play.
Stockwatch raised a number of questions regarding the Saskatchewan property deals, some of which were at least partially addressed when Entourage filed copies of the agreements with U.S. and Canadian regulators.
In the wake of those filings, Stockwatch raised some further questions about seeming oddities in the agreements, including the status of the purported 1,087 claims covered in the largest of the three deals.
Among other things, some of the issues raised by Stockwatch are further addressed in the notes to Entourage's third quarter financial statements.
The notes
In the largest of the three property deals negotiated with Emerson Koch's numbered Saskatchewan company, Entourage will reportedly receive an 80-per-cent stake in 1,087 claims known as the Smeaton property in exchange for approximately 33.89 million shares.
Under the terms of that agreement, 30 million of those shares will be issued to CMKM and will form part of a planned liquidating distribution of CMKM's assets to its shareholders.
Early on, Stockwatch questioned just why Mr. Koch directed Entourage to issue that wad of shares to CMKM.
According to the Smeaton property agreement filed on Nov. 21, Mr. Koch's apparent largesse was actually a matter of contractual obligation.
The Nov. 21 filing indicates that under the terms of a previous Aug. 1, 2003, Smeaton agreement and purported 2004 amendments with Mr. Casavant's pink sheet dog, Mr. Koch's company was required to give the 30 million Entourage shares to CMKM.
Oddly, as Stockwatch pointed out, the original Aug. 1, 2003, agreement between CMKM and Mr. Koch's company does not contain any provision under which Mr. Koch is obligated to pay CMKM any amount in cash or kind under any circumstance and the purported 2004 amendments to that agreement have never seen the light of day in any public disclosure.
In the notes to its financial statements, Entourage addresses that matter again, claiming that the 30 million shares are being issued to CMKM on the advice of Mr. Koch that they are "intended to settle debts, liabilities or obligations" between his company and Mr. Casavant's dead pink sheet promotion.
The nature of those debts, liabilities or obligations remain a mystery.
In any event, neither the 30 million Entourage shares reportedly earmarked for CMKM nor the remaining 3.89 million shares for Mr. Koch's company have yet been issued.
Stockwatch also raised the issue of the status of the 1,087 claims comprising the Smeaton property, pointing out that hundreds of those claims were set to expire in the absence of filing required technical work reports or a cash deficiency bond with Saskatchewan Industry and Resources.
As reported by Stockwatch, a random sample of 10 of 318 claims that could lapse at the end of October revealed that no assessment work had been filed on any of the sampled claims and cash deficiency bonds had only been submitted for two of those claims.
Evidently Entourage did not have a clue about the exact status of the Smeaton claims when it inked the yet to be consummated deal.
"The company is in the process of determining the exact status of these claims and believes that most, if not all, of the claims have sufficient assessment work performed on them to keep the claims in good standing with the Government of Saskatchewan until January of 2007," Entourage discloses in a note to its financial statements.
The foundation for Entourage's belief that enough assessment work has been performed to maintain the claims in good standing is another mystery.
Entourage further notes that it has "formally requested" Mr. Koch's company "to immediately register its prior work as assessment work on these claims so that it can determine which claims are in good standing, which require further work to maintain in good standing and which (if any) are not in good standing."
It remains to be seen how that will turn out.
Meanwhile, if and when the 30 million shares are issued to CMKM, they will have no voting rights until they are distributed to the company's shareholders.
"Entourage does not know when, if at all, the 30,000,000 shares will be delivered to the CMKM shareholders," the company cautiously advises.
In a second deal, CMKM is assigning Entourage its right under a defaulted agreement to acquire a 50-per-cent interest in four prospective uranium claims known as the Hatchet Lake property owned by Rick Walker's TSX Venture company United Carina Resources Corp. in exchange for 15 million shares.
CMKM reportedly intends to distribute those 15 million shares to its shareholders, too.
As disclosed in the notes to Entourage's financial statements, those 15 million shares have not been issued yet, either. And, once again, Entourage disclaims any knowledge about "when, if at all," those shares will be distributed.
Under the third Saskatchewan property agreement, Entourage will issue five million shares to CMKM in return for a reported 36-per-cent interest in 337 claims known as the Forte property owned by John E. Dhonau's Nevada Minerals Inc., a private company.
CMKM claims that it has already paid Nevada Minerals for that 36-per-cent interest, but the accuracy of that claim cannot be confirmed from the pink sheet company's shoddy public disclosures. Indeed, what is known is that at least as of May 10 CMKM was still on the hook for $2-million (U.S.) to Mr. Dhonau's company.
In any event, the five million Entourage shares under the Forte deal have not yet been issued.
Interestingly, there are no reported strings upon the yet to be issued five million shares that form part of that agreement and Entourage does not offer any disclaimer with respect to the ultimate fate of those shares.
Given CMKM's remarkably dismal record when it comes to meeting its commitments and following through with announced plans, Entourage's notable lack of comments or disclaimer regarding those five million shares may invite questions about whether Mr. Casavant's pink sheet woofer still intends to distribute the full 50 million Entourage shares.
Meanwhile, Entourage's share price, which notched a 52-week high of 70 U.S. cents in the wake of the Oct. 20 announcement of the Saskatchewan deals, has been under some pressure recently.
On Nov. 30, Entourage's stock price dipped as low at 16 U.S. cents before making up some ground in late afternoon trading. Interestingly, according to a Nov. 30 SEC filing, Mr. Kennedy chipped in with some modest support as the price was taking a bit of a beating, acquiring 10,000 shares at 17 cents per share.
Trading was relatively flat on a volume of 160,000 shares as Entourage closed at 21 U.S. cents on Dec. 1.
The saga continues.
Comments regarding this article may be sent to lwebb@stockwatch.com.
(Further information regarding CMKM Diamonds and associated companies can be found in Stockwatch articles dated Oct. 21, 2003; June 22; Sept. 16 and 24; Oct. 1, 15 and 20, 2004; Feb. 11, 14, 18, 22 and 23; March 1, 3, 4, 7, 14, 15, 16 and 21; June 6, 8, 9, 10, 13, 14, 15, 16, 17, 20, 21, 22, 29 and 30; July 1, 4, 6, 12 and 13; Aug. 2, 5 and 9; Sept. 7, 12, 27 and 30; Oct. 24, 26 and 31; and Nov. 7, 11, 22 and 25, 2005.)
Island