I don't think it sounds grim.  Omagine is going with its backup plan. It's a good thing they have one! 

The way I read the 10-Q, CCC is now out of the picture! Shocking, but considering they've been holding things up, maybe it's for the best.  It sounds like Omagine is close to agreements with a new construction company and bank and still plans to begin serious design and construction activities in Q1 2017.

I totally agree it's a brilliant move.

Omagine did say that Omani banks were willing to use the land rights as collateral, but if the Qatari bank was the first bank to offer an acceptable term sheet and LLC has to put up $25MM, so be it. The loan (if it's completed) will put everything in motion and it's great news.

I love how banks will only loan you money when you already have money.

The Qatari bank loan basically says "We'll agree to loan you $25MM, but we won't actually give you the money until you deposit $25MM in an account at our bank as collateral."

So the only thing the loan accomplishes is the triggering of the $69MM payment to LLC, which is great, but kind of crazy that LLC had to do this.

I think splitting the land value makes sense. The good news, besides it going on the balance sheet and not just a footnote, is it's not an intangible asset as they expected. "Land under development" and "Real estate held for investment" looks much better on a balance sheet!

But the best news in the 10Q is the term sheet from the Qatari bank. Land rights are great, but this project is going nowhere without financing. Let's hope completing the loan doesn't take as long as completing the CCC contract. This loan would be a huge milestone and truly gets the Omagine Project underway.

One negative in the 10Q is that OMAG had to sell more shares to raise cash:

"On October 26, 2015, Omagine sold an aggregate of 1,200,000 restricted Common Shares to three non-U.S. persons who are accredited investors (500,000 restricted Common Shares each to two investors and 200,000 restricted Common Shares to one investor) for aggregate proceeds to Omagine of $1,200,000."

This increases shares outstanding by about 6.9%. I'm so sick of the dilution. I hope this is the last time OMAG has to sell shares at $1 - or even under $5. Once the bank loan and the CCC contract are complete, I believe that triggers the $70MM payment to LLC. That has to help the stock price. And with the $1,200,000 from the stock sale, OMAG has no excuse not to hire an investor relations firm immediately.

I can't believe someone would short 28K shares of an illiquid stock. Very risky. I can understand shorting when OMAG doubles on huge volume, but not when volume is light. (Did anyone see the massive short sqeeze in KBIO last week? The stock was under $2 on Wednesday and traded over $20 on Friday!)

I was watching the trading of OMAG on Friday and there was a block of stock for sale. I think nearly 30K shares. Buyers kept picking away at the block. I hope the buyers know more than the seller/shorter.

Regardless of how it's accounted for, Omagine LLC still owns land rights appraised at over $700MM. If OMAG goes to $1 because it's only a footnote, I'll be buying a lot more OMAG!

Under GAAP, when you buy an asset, it goes on the books at cost, not market value. If you buy land that's worth $200K and you pay only $150K for it, it goes on the books at $150K and stays there - even if the land keeps going up in value.

http://www.investopedia.com/terms/h/historical-cost.asp

Of course, Omagine LLC doesn't use GAAP, so the accounting might be different. Also, Omagine has land rights, not land. So it's an intangible asset. And they didn't buy it with cash. They used shares of the LLC. I believe Omagine's argument to the accountants is that the LLC shares used to acquire the land rights are worth $700MM+ because no other valuation is available other than the appraisal.

But I'm not in OMAG for the project's $700MM+ land value. I'm in it for the $2.5 Billion of future net positive cash flow!