Dear Omagine Shareholders,
Omagine, Inc. (“Omagine”) has today filed with the SEC its Report on Form 10-Q for the period ended June 30, 2016 (the “10-Q”). The full text of the 10-Q can be viewed here: https://www.sec.gov/Archives/edgar/data/820600/000121390016016321/f10q0616_omagineinc.htm
Selected excerpts from the 10-Q are quoted below. Omagine urges all investors and shareholders to read the entire text of the 10-Q for complete details of Omagine’s recent activities.
Excerpt:
Overview of Recent Material Events
As previously reported, as a result of the unsettled market conditions resulting from the recent sudden and steep drop in the international price of crude oil, several obstacles were encountered with regard to concluding the CCC-Contract (as defined below) (See: “Market Conditions” below).
As of the date hereof however, it now appears that these obstacles are about to be imminently overcome.
A meeting of all the LLC Shareholders (OMAG, RCA and CCC) was held on July 19, 2016 and a second such meeting was held on August 18, 2016 (collectively, the “LLC Shareholder Meetings”). In attendance for the LLC Shareholders were Mr. Suleiman Al-Yahyai for RCA; Mr. Samer Khoury and Mr. Bassam Addada for CCC; and Mr. Frank Drohan and Mr. Sam Hamdan for OMAG. Mr. Al-Yahyai is the Chief Investment Manager for Royal Court Affairs and the non-executive Chairman of Omagine LLC. Mr. Khoury is the President and CEO of CCIC. Mr. Addada is CCIC Area Manager for Oman and the CEO of CCC-Oman. Mr. Drohan is the President and CEO of the Company and the Managing Director and CEO of Omagine LLC. Mr. Hamdan is a consultant to the Company and the Deputy-Managing Director of Omagine LLC. The LLC Shareholders reviewed the present status of the Omagine Project and discussed several items that in their view were necessary to move the Omagine Project forward.
As a result of the Shareholder Meetings, it is now planned by all the LLC Shareholders that CCC and RCA will inject into LLC a portion (an aggregate of approximately $26 million USD) of their “Deferred Equity Investments” (as such term is defined in the Shareholder Agreement); that LLC will hire a local Omani bank (the “Omani Bank”) as its financial adviser and lender; that LLC will execute a Phase One valued at approximately $220 million and consisting of one hotel, 250 residences and one Pearl; that LLC and CCC-Oman will enter into the CCC-Contract; and that the Shareholder Agreement will be amended as necessary to memorialize these and any other revisions to which the LLC Shareholders may agree (the “Amended and Restated Shareholder Agreement”).
During the same monthly period (July 19 to August 18, 2016) the LLC Shareholders met several times both separately and together with the senior management of the Omani Bank and as of the date hereof, the Omani Bank has agreed in principle to be LLC’s financial adviser and to provide the debt financing required for LLC to design, develop and construct Phase One valued at approximately $220 million.
The foregoing arrangement with the Omani bank is subject to its final due diligence and to the execution of an agreement with LLC but the Omani Bank has indicated to the LLC Shareholders that, barring any unknown impediment (of which neither management nor the Omani Bank are aware), it will deliver a robust term sheet specifying the above debt financing and advisory services to LLC on or before September 4, 2016.
Management is gratified by this apparent conclusion to an ongoing series of delays attributable in large part to the present unsettled economic and market conditions in the MENA Region (See: “Market Conditions” below), but cautions its shareholders and investors that although management does not presently expect any further controversy over these matters, that the matter is not closed until the definitive written documents (the CCC-Contract and the Amended and Restated Shareholder Agreement) memorializing such agreements have been duly signed by all the LLC Shareholders. (See: “The Shareholder Agreement” and “The CCC-Contract”, below).
