MMEX Resources Corp (OTCMKTS:MMEX) Is At An Even Better Place To Grow

During our last review of MMEX Resources Corp (OTCMKTS:MMEX), which can be accessed here, their share price was dwindling. They had just come from a period of prosperity where their share price was just shy of $.03 down to a price of nearly $.01.During the course of that analysis, we remained hopeful that they would eventually bounce back especially given that the market was already extending a lot of money to them meant for completion of their projects.One main factor has changed since then (discussed later in this piece) which has given them a broader financial platform on which to engage with market participants. Such change, especially being positive, has been received very positively by the market which rewarded them with a much higher valuation.The company’s share price rose over the last 10 days from lows of $.012 to highs of nearly $.02, an over 70% jump in share price. The chart below goes further as to visualize this share price action: MMEX Daily ChartGiven that all this was driven by a press release that MMEX would be joining the OTC markets Venture Markets segment, we have chosen to detail to the reader what this means for them and how it will affect their ability to raise capital going forward. Moreover, we will also show how their current projects will benefit from the extra financing that would arise from this move.Given the above introduction, let’s dive into the topic at hand.MMEX: A Brief LookMMEX Corporation was founded in 2005 when it was incorporated in Nevada, USA. Its main operations involved the exploration, extraction, refining and distribution of oil, gas, petroleum products and electric power.Currently, they pride themselves in being a development stage company engaged mainly in gas refining especially in Texas and in the Latin American countries such as Peru and Brazil. Their main focus is to build crude oil refining facilities in the Permian Basin in West Texas.The Venture MarketThe venture market segment is a segment that is meant to enable smaller cap stocks engage with investors by presenting them with the opportunities that a capital market provides, at the same time subsidizing the costs attributable to engaging in such a market: listing costs as well as other costs attributable to expert salaries.According to OTC Markets, the venture markets segment in the U.S. currently provides over 850 entrepreneurial companies a gateway to public markets and an opportunity to electronically connect with investors.Venture markets ensure liquidity in the market by providing a platform for a dealer-driven market: a market where market players are given an opportunity to interact with their counter-parties and provide liquidity to the market. Moreover, the provision of online trading services reduces the costs for players within this market to trade therefore limiting the costs attributable to paying expensive experts as with larger stock exchanges.Finally, such markets may provide a platform for companies to get listed in much larger exchanges.MMEX and Venture MarketsThis segment, as detailed above, will enable MMEX to engage better with investors going forward. Given especially that MMEX is a capital-intensive company stemming from the fact that they engage within the energy industry, access to the capital markets will be a great opportunity for them to raise the funding necessary for them to grow.Currently, MMEX is taking part in one of its largest projects, a $5 million project that will enable them build a distillation unit that has the output capacity of 10,000 barrels per day. Moreover, with their dream being the construction of a 100,000 barrels per day distillation unit, the price for this will rise to a total of $450 million: a very costly dream this is meant to be.The need for access to capital for MMEX is ever-increasing.Going forward, the move above is only going to benefit them the more. Given that they have currently been working at meeting their goals, such a platform will continue to boost their financial muscle as they keep to their objectives.FinancialsThe company, in the second quarter, made over $3.9 million in profits for the period till July 2017, up from a $6.8 million loss in the previous quarter, quite a significant leap driven by a change in their derivative liability.This was also a period where their assets rose to $121,619, a near 100% increase.However, they had a near $2.6 million working capital deficit which they were to obtain financing to overcome. As such, the company has been working towards growing their financial muscle through being engaged in a strong financial platform.The venture market thus provides them this opportunity. We expect that the company will continue to operate efficiently and meet their targets. As such, we remain bullish about the future MMEX.ConclusionMMEX has been and keeps growing. Their entry into the venture market just provides them with a much larger base to do so. We remain bullish about their future as were before.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.