Chad

In December 2025, the New Mexico Attorney General filed a civil complaint against $NUAI, its CEO E. Will Gray II, and 16 other defendants — including two other individuals (Robert Stitzel and Marquis Reed Gilmore Jr.) and a collection of corporate entities. The complaint alleges that years ago, Gray, Stitzel, and Gilmore together ran an oil company called Remnant that operated hundreds of marginal gas wells in New Mexico. Remnant went bankrupt. After the bankruptcy, Stitzel and Gilmore formed entities called Acacia to acquire most of Remnant's wells. Gray formed Solis Partners, which became a subsidiary of what is now NUAI. Eighty-seven producing wells ended up with Solis. The hundreds of inactive, high-liability wells ended up with Acacia. Acacia then went bankrupt in late 2024, leaving the state facing the cost of plugging those inactive wells. The AG's theory is that this was all one coordinated scheme — that the three men deliberately sorted the wells so value went one direction and liabilities went the other. NUAI's position is straightforward: there was no scheme because there was no coordination. NUAI and Gray have no affiliation with Acacia. They did not form it, manage it, fund it, or direct its operations. Stitzel and Gilmore created Acacia and ran it. Gray created Solis Partners. These were separate entities run by separate people. The AG's entire theory depends on proving they were connected, and so far they have not produced anything other than speculation. The AG did not contact NUAI before filing. No discovery has been conducted. No evidence has been produced. The case was immediately stayed due to the Acacia bankruptcy and has not moved since. After the complaint was filed, NUAI's independent board members initiated an internal investigation with independent outside counsel. No limits were placed on scope. Documents were reviewed. Interviews were conducted. The investigation found no facts supporting the allegations of wrongdoing by Solis Partners, Gray, the company, or any associated entities. The wells at the center of the dispute are irrelevant to NUAI's business. The company has pivoted entirely to AI data center infrastructure. The FY2025 10-K records $12.1 million in impairment charges on the oil and gas properties and the processing plant, which was written down to negligible value. Proved undeveloped reserves went to zero. The company was already divesting the wells before the complaint was filed. The AG's primary requested remedy is voiding the transfer of those 87 wells — assets the company has already written to near-zero and wants to exit. The damage from the lawsuit extends well beyond direct legal exposure. It likely complicates tenant discussions. It blocks the legacy asset divestiture. It freezes the 3,500-acre New Mexico data center site — the AG seeks to bar the company from conducting business in the state, putting 7 GW of pipeline in limbo. It hinders institutional capital, elevates the cost of capital, consumes management bandwidth, and gives short sellers a permanent narrative anchor. The securities class actions filed in the wake of the stock decline are entirely derivative of the AG complaint and would collapse if the state case resolves favorably. NUAI closed a $290 million credit facility with Macquarie Group in April 2026 — institutional capital that conducted diligence on the litigation and funded anyway. New Mexico law explicitly waives sovereign immunity for malicious prosecution and abuse of process by public employees under Section 41-4-12 of the Tort Claims Act. The dynamics of this case favor NUAI. The company holds assets the AG wants returned that NUAI is already trying to divest. The independent investigation produced a clean result. The AG filed without investigation and faces exposure under New Mexico's own malicious prosecution statute if the case drags on. The AG needs a resolved case before a June 2 primary, not an open lawsuit with a countersuit threat. NUAI has the capital to fund a resolution through its Macquarie facility and the legal standing to make continued litigation more painful for the AG than settling. Every week the case remains open, NUAI's damages claim grows while the AG's case does not get stronger. The most likely outcome is a modest negotiated resolution — NUAI contributes to remediation, surrenders wells it has already written off, receives a full release with no admission of wrongdoing, and moves on as a pure-play digital infrastructure company with the litigation overhang permanently removed. As always, courtesy of Claude.

*The US blockades the Strait of Hormuz and threatens to blow up Iranian ships* Investors:

$Nuai shorts are also covering . The bottom just became 5.00 Macquarie will be preaching 5 million shares at 5 bucks . We open tomorrow much higher. validation injected . 10x from here.NFA

$Nuai with the news today this is just getting started . The team that has been assembled is taking care of business. No major institutions would invest 290 million if they don’t see the Vison . The writing is on the wall . NFA the funding is secured !