I was tied up for the afternoon yesterday, but I see the market traded almost 1.5M shares. It is outrageous that CUU was not halted given this material news, but I suspect they can weasel out of that obligation through the corporate structure. My understanding of this is that the root of the issue lies with CXM, not CUU, so CUU is being taken along for the ride in this folly.
The market response was pretty interesting. I still think that losing Eaglehead is actually good news for CUU, as the future cash obligation was large, and the prospects for monetizing it were slim. Now it represents one less cash drain and reason to raise funds and dilute CUU shareholders. Yes, they lose their investment in CXM (because it would appear to be worthless now without the property), but they had already lost about 50% of it to the market. I am sure they can get the $1.5M for the 2016 program back, if it was transferred yet anyway.
As I said yesterday, where there is smoke, there is fire. Whatever minimal confidence I had in this management has now disappeared. I would hope that shareholders will rake management over the coals at the AGM and I would table a motion of censure towards management. Even if if the vote is unsuccessful, they need to defend themselves and their actions. Sadly, those that have the greatest stake in this company seem unwilling to put some heat to management and prefer to post on forums rather than protect themselves and their interests. |
