Business Description
The Company was engaged in the exploration, extraction and distribution of
coal from September 23, 2010 until April 12, 2016. As of April 12, 2016, the
Company changed its business to the exploration, extraction, refining, distribution
of oil, gas, petroleum products and electric power. Effective as of April 6,
2016, the Company changed its name from MMEX Mining Corporation to MMEX Resources
Corporation to reflect the change in its business plan.
On October 7, 2014, Mr. William D. Gross, the holder of the MMEX Preferred
Shares, accrued dividends on the Preferred Shares and certain MMEX convertible
notes payable (the "Instruments"), entered into an assignment agreement
to assign the Instruments to Maple Project Finance, LLC ("MPF"), and
in turn, on October 9, 2014, MPF assigned the Instruments to Maple Structure
Holdings, LLC ("MSH"). MPF and MSH are related parties owned by Jack
W. Hanks, President and CEO of the Company. On May 15, 2015 MSH notified the
Company that it would convert the Instruments into common shares at a conversion
rate of US$0.01 per share, or otherwise foreclose on the Instruments. The Company
agreed with MSH to convert the outstanding Instruments with a total book value
of $3,360,685 to a total of 318,283,699 shares of the Company’s common
stock under a settlement agreement dated as of May 18, 2015 at the rate of $0.01
per share, which resulted in a loss on extinguishment of debt of $1,413,571.
On May 18, 2015, the MMEX Board of Director approved these transactions. On
November 10, 2015, 123,283,700 shares of common stock were issued to MSH for
conversion of the MMEX Preferred Shares and on May 2, 2016, 194,999,999 shares
of common stock were issued to MSH for conversion of the convertible notes payable.
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