MMEX Resources Corp (OTCMKTS:MMEX) Stupid Is As Stupid Does

MMEX Resources Corp (OTCMKTS:MMEX) is one of the more brazen attempts at suckering investors that we have seen in a long time. We read the message boards and we really can't believe investors can be so gullible. They do say a sucker is born every minute, but at the rate pumpers churn out messages on iHub, it looks like a sucker is born every second. It's like in the Forrest Gump movie when he says, "Stupid is as stupid does." Translation: just because someone maybe smart, when they do stupid things, they're still stupid. Case in point is MMEX.Now we're not going to say that MMEX has not had a great run. Matter of fact, it's been on one of the most spectacular runs that we've seen on the OTC Markets this year. For those that got in and took the risk, our hats off to them. In investing, it's not a matter of right or wrong, it's whether you made money or not. However, to all the deranged believers out there, best off getting out and booking profits while you can. Here's why.MMEX is a repeat of a script that Maple Resources Corporation did last year when it announced its intention to build a refinery in Guatemala. The report said:

Maple Resources Corporation is planning to invest between $75 million and $100 million in a plant with capacity to process between 10,000 and 40,000 barrels of oil per day.

It further added:

"The announcement was made by the multinational Maple Resources Corporation through its CEO Jack W. Hanks, who revealed that the investment could range between $75 million and $100 million ....the construction could take 18 to 24 months, and while it is starting, work will be done on environmental studies and other permits that are required in the country. Between 40% and 50% of the product of the refinery is diesel, while the rest could become fuel for cars or airplanes, in addition solvents will be produced for paints and other products for industrial use. "

Sound familiar? MMEX used the same script this year in its press release.

MMEX Resources Corp. (OTCPK: MMEX), a global energy company focusing on the acquisition, development and financing of oil, gas, refining and infrastructure projects in Texas and South America, announced today that it plans to build a $450 million, 50,000 barrels per day capacity crude oil refinery in the West Texas Permian Basin, subject to the receipt of required governmental permits and completion of required debt and equity financing.

It further added:

The company anticipates the 18-month construction process will create approximately 400 jobs in the area during peak construction, as well as foster a significant number of indirect jobs and revenue for companies in catering, workforce housing, construction, equipment and other industries. Once operational, the facility is expected to provide an estimated 100 permanent jobs and generate substantial tax revenue for Pecos County.

Well, what happened to the Guatemala refinery? Construction was supposed to take 18 to 24 months and we're going into month 14 since the announcement. We searched and didn't find anything. What about the $450 million? MMEX CEO Jack W Hanks told The San Antonio Express-News:

"What we’re taking is a shell company that I control and it has no assets in it; the stock price is extremely low and we’re going to put assets in it and build the company. I can’t write a check for $450 million."

Well, what is a shell company. The SEC defines a shell company as "a publicly held company with no or nominal assets other than money." Well, does MMEX have any money? According to the latest SEC filing, MMEX has just $82 in cash. Well, what has the company been doing then? It's been issuing shares.

During the nine months ended January 31, 2017, the Company issued a total of 731,491,509 shares of its common stock: 194,999,999 shares in conversion of notes payable in default of $2,925,000; 41,784,320 shares in a private placement for $118,230 cash and $60,000 in services; 7,000,000 shares as a fee valued at $34,300 and 452,000,000 shares in conversion of $56,100 note principal pursuant to the Settlement Agreement (Note 7) and $156,283 in associated derivative liabilities; 5,000,000 shares for cash of $1,000, 2,082,190 shares in settlement of accrued expenses of $208,219 and 28,625,000 shares in payment of accounts payable for services of $5,725.

Yep, you read that correctly. MMEX issued 731,491,509 shares worth $20,481,762 today!Is the dilution over? No way!

On March 7, 2017, the holders of more than 50.1% of the outstanding shares of common stock of the Company executed their written consent in lieu of special meeting approving an amendment and restatement of the articles of incorporation to provide for an increase in the authorized shares of common stock from 3,000,000,000 to 10,000,000,000 shares.

Currently trading with a market cap of $69 million, MMEX is going to leave a lot of investors bloodied when the music stops. MMEX is nothing more than a share issuance scheme designed to enrich insiders. They already have enriched themselves to the tune of at least $20 million. All we can say is buyer beware!We will be updating our subscribers as soon as we know more. For the latest updates on MMEX, sign up below!Disclosure: We have no position in MMEX and have not been compensated for this article.