Omagine The Sultan of Oman Giving Away Land (OTC:OMAG)

Investors think they own a more valuable company after yesterday's agreement. But do they?

Agreement

The agreement would give Omagine $70 million for 40% of the company. This agreement would let current Omagine shareholders keep 60% of the new company. Giving the new entity approximately $40 million of equity. (lower than 60% *70 million because of their other businesses). The stock price is now reflecting this ridiculous notional value.

Reality dictates a few of the points below -

1) All Omagine did yesterday was sell 40% of their company $160,000. The agreement with the shareholders is contingent on other factors.

2) The contingency is for a development agreement with the Sultan of Oman. Apparently the Sultan of Oman will just give the land to the company for free.

3) The agreements signed yesterday put the company a little further along . The main document that needs to be signed is the "development agreement" which will give the company the right to develop the land.

The Actual.

1) Omagine shareholders are supposedly being given 60% of this company despite possessing no capital of their own.

2) The company has existed for a very long time and this appears to be some sort of joke.


What to do?

Keep dreaming. but the stock is not worth a penny more than the 26 cents agreed upon yesterday which transfers 40% of the company for $160,000. The $70 million does not exist.