History
A small oil and gas company that bought Kentucky and Tennessee wells in 2009-2010 later went quiet, then returned as Sylios Corp funded by convertible notes.
2009-2010: Building an oil and gas business
Adventure Energy set out in 2009 to grow through acquisitions, and it leaned on debt and share sales to do it. In September 2009 it bought SLMI Options, LLC for a $1 million secured promissory note plus 1.5 million shares. It also issued preferred stock that could convert into up to 10 million more common shares and give the sellers three board seats if the company defaulted. In October it lined up an equity line of credit with Tangiers Investors for up to $3 million, selling shares at 90% of the lowest recent price and paying Tangiers $150,000 of stock just to sign.
In November 2009 it made its first purchase of producing assets: 15 active wells, 30 previously drilled wells and about 2,000 leased acres in Kentucky from KYTX Oil & Gas, for $120,000 plus a 3% royalty. In March 2010 it agreed to buy Wilon Resources in an all-stock-and-warrant swap. That took it to about 17,000 acres and 115 gas wells, though all of Wilon's wells had been shut in since 2005, plus 30 oil wells. The combined company was renamed US Natural Gas Corp. In October 2010 it borrowed $40,000 from Asher Enterprises on a convertible note, convertible at 58% of the average of the three lowest recent trading prices, which favours the lender more as the stock falls.
2011-2018: Going quiet
The company was later known as Sylios Corp, though the record does not explain when or why it was renamed. On 16 April 2012 it suspended its duty to file periodic reports with the SEC. The record is then quiet until 2019. Share counts for these years are not explained by any beat, so they are not narrated here.
2019-2021: Return and small deals
Sylios came back to SEC reporting in 2019, and the record shows it financing itself with convertible notes rather than running oil and gas operations. In July 2019 it took two notes totalling $33,000 from Armada Investment Fund at 8% with five-year warrants, with over 5 million shares reserved for conversion. Three weeks later it took $46,200 more from Armada, BHP Capital NY and Fourth Man. In October 2019 BHP Capital and Fourth Man lent another $27,500, with warrant strike prices cut to $0.024 from $0.08 three months earlier and 16 million shares reserved for conversion.
On 30 October 2019 Sylios paid 16 million restricted shares for $160,000 of surplus goods from Wanshan Engineering Services: 30,000 soap-filled scrubbers and 1,000 wireless earbuds, far outside its stated business. In January 2020 it agreed to help Deep Green Waste & Recycling prepare its S-1 for $7,500, of which $5,000 was received. Separately, it bought a $35,000 Deep Green convertible note with a warrant for 262,500 shares.
Shares on issue stood at 391,243,635 at the end of 2021, up from 49,209,761 at the end of 2019. The beats do not explain this rise. A 10-K was filed on 17 March 2021. The SEC then revoked the company's registration on 19 October 2021 for delinquent filings, which the company did not announce. As of that date, the record shows no oil and gas operating activity since the 2010 acquisitions.
Written from the 11 story beats below (2009 to 17 Jan 2020), which come from the company's own announcements and filings.