Barrel Energy Inc (OTC:BRLL) Stock Pulls Back After Recent Rally
As the midweek period comes around, the focus of investors is going to continue to be sharp. There are many stocks that could come into considerable focus this week, and one of those could be Barrel Energy Inc. (OTC:BRLL) in light of the developments from yesterday. The company came up with a key update yesterday with regards to some of its financial actions. It was also noted that the specific actions would also help in the creation of a much cleaner balance sheet.
In the news release, Barrel Energy noted that it had inked a lease agreement on May 14, 2019 for 602 acres in central California for $1000 an acre in order to grow hemp for fiber use. The annual cost for the 10-year lease was $602,000. On February 19, 2024, the company reached an agreement with the landlord to terminate the agreement. All the money that had been due to the landlord had also been forgiven. As of December 31, 2023, Barrel Energy had accrued as much as $2,558,500 in the form of unpaid lease payments. The company revealed that the amount would be eliminated and reflected in the upcoming quarterly statement.
The board of directors at Barrel Energy had also provided approval to the proposal from the chairman of the company to exchange the accrued expenses totaling $925,719 owed to Mr. Sangha for preferred shares.
The chairman had proposed the motion to issue 5,000,000 shares of the Series A preferred stock of the company. It was also noted that the 4% Series A preferred stock would provide the holder with voting control, but the shares would not be convertible into common stock in Barrel Energy. Last but not least, the board had also reached an agreement to restructure $512,000 worth of convertible notes that had been due to AT Media and Mr. Sangha.
