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Gold/Mining/Energy : CEAPRO INC.----CZO -- Ignore unavailable to you. Want to Upgrade?

To: PJ who wrote (8)	4/11/1998 1:54:00 PM
From: fivedollar	Read Replies (2) \| Respond to of 53

To all Ceapro Inc. readers, It appears that the latest press release regarding the Saskatchewan Government Growth Fund (SGGF) may be a blessing in disguise. Don't get me wrong, the stock is down (on perception) and many shareholders including myself are very disappointed with the lack of progress on many fronts. Allow me to explain the current situation. SGGF became involved back in August of 1993 when they invested $2.6 million in Canamino. Canamino is the 100% owned subsidiary of Ceapro Inc and is nothing more than the production facility for Ceapro products. SGGF received 1.3 million redeemable, convertible class B preferred shares for their $2.6 million investment. These shares carry an 11% coupon and also stipulate a cumulative dividend of 25% of the after tax profits. In the event of default of payment of either dividend for a period of greater than 90 days or if redemption requirements are not met, SGGF has the right to exercise voting control equal to 51% of the voting entitlement until such time as the default is remedied. SGGF did in fact exercise this right on one previous occasion back on Sept/30/1995. Canamino remedied by remitting the dividend arrears plus interest and agreed costs resulting in SGGF relinquishing voting control. It is very important to note here that PERCEPTION is everything. SGGF, by exercising voting control of Canamino, does not have any control or say in Ceapro's day to day business. I think the market feels that the company may be in a more precarious position than it really is. This is not the case. In fact, the business end of the company is far ahead than that of a year ago. This really is the most important factor to take into consideration at this time. Yes, SGGF had the right to exercise their option because they had not been paid dividends and redemption terms had not been met. IT IS IMPORTANT TO NOTE THAT SGGF DID AGREE TO THE RECENT RESTRUCTURING PLAN AND DID AGREE IN PRINCIPAL TO CONVERT THEIR $3.4 MILLION WORTH OF PREFERRED SHARES TO COMMON SHARES IN CEAPRO'S $10 MILLION FINANCING. COINCIDENTALLY SGGF CALLS CEAPRO THE DAY FOLLOWING THE PRESS RELEASE REGARDING THE OVERWHELMING SUPPORT OF THE RESTRUCTURING PLAN. THEY ARE WANTING TO MAKE SURE CERTAIN CREDITORS HAD AGREED TO THE PLAN BEFORE THEY SERVE NOTICE ON CEAPRO TO EXERCISE THEIR OPTION REGARDING VOTING CONTROL. SGGF most definitely acted on some motivation that has to do with another Saskatchewan politically backed agricultural company that has an interest in Ceapro's patented technology. I PERSONALLY INVITE ANYONE WHO READS THIS THAT MAY HAVE FURTHER KNOWLEDGE OR COMMENTS ON THE ABOVE SUGGESTION TO SHARE THEIR FEELINGS AS THIS IS A VERY IMPORTANT ISSUE. The reason that I feel this whole situation may be blessing in disguise is this. Ceapro Inc. is currently negotiating to remove SGGF from the picture entirely. SGGF has been a problem for some time now and it is the right thing to do at this time. Ceapro may as well clean up everything all at once. What I do know at this time is that any deal reached will eliminate SGGF and the balance of the company debt due to two chartered banks which is approx $2.5 million. This result has many benefits including a totally debt free company, 8 million less outstanding shares, a very clean balance sheet and a reduced financing need of $5 million, all of which would be utilized for working capital purposes. This is a very desirable position to be in which will enable the company to move forward at a much quicker pace. I would ask that on behalf of Ceapro Inc. that a little more patience be shown to allow this latest hurdle to be cleared. I can assure you that management, right from Bob Phillips (chairman of the board) down, are committed and focused on moving forward to grow this company into its full potential. Bob Phillips came on board a few months back. His track record is excellent as his leadership qualities took Dreco Energy from $30 to $120+ in the past 2/12 years including a takeover from National Oil Well. He has assured me that he is committed to Ceapro Inc. for the long term and fully intends on pursuing avenues that will allow Ceapro Inc. to realize not only it's potential but expectations as well. Thursday's closing stock price of $.71 is not only a new low but is far below the companies net asset value. These are bargain prices. One question I do have for any of the readers and more directly to one individual who has been the main seller of the stock for some time now. Stock has been continually coming out of Dominion Securities or its discount arm, Action Direct. 5000 share blocks have been persistently coming for sale and it appears that price is not a factor as the last block went through at $.75 on Thursday. My opinion is that this is a disgruntled former Vexco shareholder who has $40-.60 stock. This has been going on since the stock was well over the $2.00 mark. If anyone knows of this individual, please send me a private message if need be and we can accommodate this person in one trade rather than this slow torturous feeding that has done nothing but put downside pressure on the stock. Please don't be shy with your comments, knowledge or insight. I do know that management does monitor this thread and any comments or questions will be addressed.