Ben, I did attend the AGM and met another Silicon Investor CHT forum reader. The issue of re-pricing of options was well discussed and I did speak and vote against it, on principle. Having said that, I do understand management's frustration. The company cannot afford large salaries at this stage of its development, so options become attractive. When the VSE drops from 1400 to 407, and CHT goes with it, there is not a lot of benefit in the original options.
The company anticipates filing the formal application for a TSE listing by September 15th. Some preliminary discussions have already taken place. CHT hopes to be listed on both the TSE and the Bulletin Board by the end of the calendar year. In my opinion, this should help the company with financing, expanding its shareholder base and, over time, improving shareholder value.
Record sales are expected for Q2. Probably in the $4.9-5.0M range. Earnings, after taxes, for fiscal 1999 should approach $750,000.
Internal growth is progressing well. Acquisitions, when they come, will be financed through a $3M line of credit. Happily, not from equity.
I am impressed with management and the company operation. I have continued to add to my family's CHT positions subsequent to the AGM. I am now bottom-fishing with a bid of $0.48.
Best regards, Ed
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