They lost their financing from the Royal Bank of Scotland when the bank got into financial trouble. They had to come up with a new financing. They struck a new deal with Canacrap that really screwed the current shareholders.

They have apparenty now canceled that deal.

Oilexco Incorporated ("Oilexco" or "the Company") (TSX:OIL) (LSE:OIL) announces that following a Board Meeting held earlier today to review the proposed offering being led by Canaccord Adams of up to U.S. $150,000,000 of 15% Convertible Senior Unsecured Bonds and up to 20,000,000 Common Shares, it has been decided to cancel this offering. In the current market conditions the proposed offering was determined by the Board to be overly dilutive to shareholders and does not reflect the value of the Company's assets. The Company has a number of strategic and financial options available, and has appointed Morgan Stanley to assist it in reviewing these strategic alternatives which include mezzanine and debt financing, industry and financial partnerships together with other financing alternatives.

Way undervalued if they can pull a new fanancing off but I think management has now lost almost all of its credibility.

Could be a takover target.