Nilam Resources Belatedly Appoints Interim CEO Following Ex-Chief’s Resignation
Nilam Resources (OTC PINK: NILA) has belatedly appointed Pranjali More as its Interim Chief Executive Officer after the former CEO Ron McIntyre resigned, calling the recent bitcoin strategy of the firm a “classic pump and dump” scenario.
More was only appointed as the firm’s chief operating officer in November 2023, back when McIntyre was still the chief executive. Days before More’s interim CEO appointment, in the press release announcing the company’s eyebrow-raising billion-dollar bitcoin acquisition through a company buyout, More was attributed as both the firm’s COO and CEO.
The company said that the decision to appoint More as interim CEO aims to “add continuity to operations while Nilam Resources, Inc. looks to permanently fill the Chief Executive role.”
This announcement comes amidst ongoing concerns over the company’s trading status and the status of its bitcoin acquisition. Recently, Nilam Resources stated that in collaboration with Mauritius-based Xyberdata, it would be acquiring a yet-to-be-established special purpose entity named MindWave with the aim of acquiring 24,800 bitcoins.
However, the press release failed to provide clarity on the crucial aspect of how the companies intend to obtain the billions of dollars worth of cryptocurrency. This lack of detail has only added to the puzzlement surrounding the proposed acquisition.
When sought for a comment, McIntyre revealed that he had resigned from his position and had his name removed from all corporate documents. He then attributed his resignation to what he described as a “classic pump and dump” scheme, suggesting that the company’s stock price surge was not based on substantial value.
Adding to the complexity of the situation is the financial standing of the involved firms. Nilam Resources’ holds assets of $13.9 million – of which $11.1 million is intangible assets and goodwill – and liabilities of $1.2 million.
Xyberdata’s unaudited financial statements revealed that it possessed approximately $70 million in ‘shareholder funds,’ with only $1.5 million in available cash. This amount falls significantly short of the approximately $1.2 billion required for the bitcoin acquisition.
The company said it has taken steps to address misinformation surrounding its agreement with Xyberdata. Nilam Resources has provided OTC Markets with audited financial statements from Xyberdata, emphasizing that the corporation, based in Mauritius, holds sufficient assets to meet the terms of the agreement.
“Xyberdata is a Mauritius corporation and financial statements from places other than Mauritius do not represent its actual financial status. The audited financial statements indicate that Xyberdata holds more than a sufficient number of BTC to satisfy the terms of the letter of intent between the parties,” the company said.
Prior to this appointment, Nilam Resources faced challenges with OTC Markets, which labeled the company with a Caveat Emptor designation on March 27, 2024.
Despite this designation, the company has not received detailed information from OTC Markets regarding the reasons behind it. In response, Nilam Resources has reached out to OTC Markets to request clarification on the matter.
“The Company wants to reiterate that no officers or directors of the Company have sold any shares and that any alleged comments regarding this transaction made by the Company’s former CEO were not made on behalf of the Company and don’t represent the views of management,” the firm clarified.
McIntyre, on the other hand, said that he was excluded from the details of the transaction, stating that his coworkers failed to provide him with adequate information before issuing the press release. He declared his intention to pursue appropriate legal actions, indicating a forthcoming complaint to the relevant state bar.
Moving forward, Nilam Resources remains committed to resolving the Caveat Emptor designation with OTC Markets promptly.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
