CAVR (recent pricing low volume in the .35-.40 area with bid ask ranging .35 x .60) Formerly quoted as PRXT and PDNW.
I'm depositing this here as I was looking for a board where one can express objective/negative opinions without the typical gossip and posterior slapping that predominates the basher run boards. It seems like an interesting one to watch as it is just at the beginning of a financing/capital run, which may or may not show a P&D from start to finish. That's just my opinion but I welcome any contrary comments.
Initial disclosure 211 - personal opinion/impression is that Robinson, who has run this entity through various iterations, has tried to be honest and transparent, at least compared to others in this universe, so worth watching. However, the stock should begin to tank, perhaps after some initial pump volume.
Authorized 600 million common, 11 million preferred
Don't know how to copy from this type of document, so these are my notes, urge all to read in full for more accurate info:
56,382,633 common issued
500,000 preferred issued which have the following rights, at least how I read it
preferred voting rights are 1000 x common
Conversion into 100 x common. So that equals another 50 million shares common. Upon conversion also entitle to $10 a share or $5 million. Requires vote of BOD.
In default of $550,000 note, but negotiating with them.
In reading the business aspects, it seems that they have acquired some leases but they need money to operate, need to raise capital. Increase of authorized shares to 600 million looks like the source of raising capital IMO. Insiders will be able to sell by converting preferred shares.
Claymore and NHS control voting rights and can pick the BOD so they can do what they want with the preferred and the dilution to follow. The Robinson family controls Claymore.
The business plan in Item XVI - basically spells it all out. The company lacks capital to do anything further and will spend the next year raising capital through attempts at selling stock and debt.
I may be wrong on this but the filing I went through does not have complete financials so it's impossible to try to value the company. From what is provided, it looks like they valued the leases, shuffled them into this entity, issued notes and shares to control the company, and now hope to keep the float low enough for awhile to pump the price up, and then dump a ton of shares.
That's just opinion, urge all to thoroughly read the filing. Thank goodness for filings. If they did not file this, it could perhaps be just another pinkie that dumps shares on us. We have to be thankful for for that and the relative honesty and transparency.
If I had to guess, and that's all one can do at this point, is that rather than the .01 (which would be $2.50 post reverse split) previously predicted by someone on the stock specific board, the post-reverse split 1/250 share price is going to be heading into the .01 area here, which is the equivalent of 0.00004 on the old shares.
If they issue just 1/2 the authorized, that would value the company over $3 million, which seems reasonable given the probable debt, future issuance of preferred shares, consulting contractual obligations, and other control/financing devices, etc.
Again, just opinion. |
