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Omagine opposes default payment on convertible notes

Omagine Inc. said it disagrees with the alleged outstanding balance of the 12% convertible note payable to EMA Financial LLC after the company received a default notice from the lender.

Including default penalties and accrued interest, EMA calculates that the outstanding amount payable to it now stands at nearly $1.9 million, from the original $55,000 principal amount.

According to EMA, the default was triggered by a failure, on the part of Omagine, to reserve a sufficient number of its 0.1 cent par value common stock shares for possible future issuance to it, as well as by the breach of representations and warranties under the note. It is demanding full payment of the outstanding balance it calculated, according to a release.

Omagine responded by saying it maintains its intention to increase the number of its authorized common shares, as obligated, by way of a proxy filing and meeting of its shareholders.

Separately, the company revealed its plans to create an impairment reserve on its financial statements in the full amount of the land value pursuant to the Omagine project, if its approximately $20 million deal with Oman's Royal Court Affairs fails to materialize by March 15. Letters by Omagine's attorneys to His Majesty Sultan Qaboos — regarding the default of investment into the company's Omagine LLC unit — have gone unanswered, the release noted.