chcl filed an NT-10k reporting that management was too busy with business operations in Pakistan to close their books and file their 10k on time.
I wonder if that means that they won't have time to consider Hitsgalore's proposal?
The whole story sounds even more unlikely than the Pete Foley story. Recall that Foley is a penny stock broker who had previously worked for a firm that the SEC described as a "criminal enterprise."
sec.gov
Subsequently, in Oct. 1999, he said that he was going to fund Hitsgalore with $10 M cash, including $1.5 M within 30 days. He said "we have the needed commitments from our investment partners to bring the financial resources to Hitsgalore."
Well, apparently no cash materialized from Foley. The CHCL deal looks even less likely.
Anyway, if you look at CHCL's balance sheet, it is funny. It makes it impossible to know whether they have the resources to buy anything. At first the balance sheet looks like it has a lot of cash, and a lot of shareholders equity, too. In fact, CHCL trades below book value, if you believe the figure in the 10Q for shareholders equity. OTOH, shareholders equity and cash are dwarfed by funny assets: a peculiar "minority interest" and a huge asset for a "land lease right" whose value I suspect cannot be verified. If you subtract those, shareholders equity is a big negative number. So it is entirely possible that they don't have the resources to buy anything at all. It just isn't possible to tell, from looking at the balance sheet. |
