Thanks Milk, found it...
As bad as Jack makes out old management to have been, at least they documented things rather well. If history repeated itself once, what are the chances of it repeating itself again? CVIA needs a BOD who is accountable to its shareholders...
sec.gov
Liquidity and Capital Resources
On December 18, 1996, the Company entered into an arrangement with Select Capital Advisors, Inc. to provide services for the purpose of securing equity and/or debt funding from investors and/or financial institutions (See Item 5. Below). An Offering pursuant to Regulation S was structured for a maximum issuance of convertible debentures in an aggregate principal face amount of $1,875,000. During March and April of 1997, the Company issued $1,284,560 (face amount), for which net proceeds of $941,600 were received. In addition, the Company received signed debentures for an aggregate principal amount of $279,410, for which net proceeds have not yet been received.
In anticipation of receiving the remaining proceeds from the $279,410
(face amount) (estimated net of $200,000) of signed Debentures and in
reliance upon assurances from Select Capital that additional financing was forthcoming, the Company advanced approximately $450,000 to certain creditors of Phipps and committed itself to pay certain liabilities on behalf of Phipps.
At June 30, 1997, management determined that the net proceeds from the sale of Debentures and other funding sources were not sufficient to fund the Company's long-term working capital requirements and the Phipps acquisition. Attempts to renegotiate the timing and amount of funding requirements for the Phipps acquisition have to date been unsuccessful. |
