American Noble Gas Inc. Settles Legal Disputes and Pays Off Outstanding Convertible Notes in Q1 2023

American Noble Gas Inc. (AMNI) has recently released its Q1 2023 SEC report, which reveals fascinating information about the company’s settlement of legal disputes and reduction of liabilities. The company, engaged in the exploration and development of natural gas and crude oil properties, has managed to tackle multiple legal matters and secure its financial standing.

In one of the legal disputes

the company entered negotiations with the State of Texas in late 2012 and early 2013 to reduce its aggregate liability. The settlement resulted in a reduced liability payment of $45,103 to the state. Although performance obligations must be fulfilled to settle and dismiss the matter, the company’s management has estimated that the liabilities associated with this issue will not exceed $780,000. After deducting the payment made to the State of Texas in 2012, the remaining liability has been included in the asset retirement obligation on the company’s balance sheets.

Another legal matter involved

Cambrian Consultants America, Inc., who filed an action against American Noble Gas Inc. due to an alleged breach of contract. By December 8, 2014, a default judgment had been entered against the company amounting to $96,877, plus interest and attorney fees. This litigation’s impact has been included in the company’s accounts payable, which the management believes is sufficient for resolving the dispute.

In 2014, a dispute arose

between American Noble Gas Inc. and Torrey Hills Capital, Inc. (Torrey) in connection with a consulting agreement. Despite disagreements on both sides, the arbitration panel awarded Torrey a total of $79,594 in damages. The company has accrued this amount in its accounts payable as of March 31, 2023, and December 31, 2022.

In an effort to better manage its finances

and prepare for future growth, American Noble Gas Inc. has recently issued new shares in the form of convertible preferred stock and warrants to accredited investors. Proceeds from the issuance were used to pay off outstanding convertible notes payable and provide general working capital for the company.

As of March 31, 2023, and December 31, 2022, the company is authorized to issue up to 10,000,000 shares of preferred stock at a par value of $0.0001 per share. The company’s successful issuances of Series A Convertible Preferred Stock in March 2021, June 2022, and August/September 2022 have strengthened its financial position, allowing it to tackle the legal disputes mentioned above and pay off previous debts.

Overall, American Noble Gas Inc.’s settlement of legal disputes and focused management of its outstanding liabilities demonstrate the company’s resilience and commitment to addressing challenges head-on. By tackling these issues and securing financing through the issuance of convertible preferred stock and warrants, the company is well-positioned to focus on future growth opportunities and continue its exploration and development endeavors. Investors and stakeholders can remain confident in the company’s ability to manage and resolve disputes effectively and maintain a strong financial standing for future success.

Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!