Ann: Penta update, page-3

Penta owes CT1 $463,247.

• Option 1: Penta pays with Ethereum (ETH) tokens.
• Option 2: CT1 recovers the Penta CT1 shares at nil cost.

Let's discount Option 2 because it doesn't make sense. According to the announcement, Penta has reaffirmed its commitment to CT1 (i.e. there must have been discussions/correspondence between companies for CT1 to express this confident statement to shareholders).

I've always thought the Penta relationship (like the FGF linkage) is valuable but it hasn't been leveraged. The quarterly stated CT1 is exploring "significant" opportunities in Asia. Perhaps this will be via Penta??? I was just reviewing the original Penta investment announcement which highlighted: "Opening the China market for the CCP Solution". And interesting that Penta has made the following announcement a few months ago which is right in CT1's sweet spot:



I wonder... (and I'm even tempted to change my sentiment on CT1 to a buy). Anyway, I digress...

Option 1 is good. It allows CT1 to trade ETH to support cash flow (if required). In Feb 2019 the Board advised the company will achieve cashflow neutrality before the end of 2019. The June quarterly stated breakeven is near-term (i.e. so the Board must be very confident breakeven is close). If we don't need to trade the ETH to prop-up the bank account, those tokens could be a good asset to hold. There's been a slow upwards trend in the ETH trade over the last 9 months. Despite being a distant second to Bitcoin, ETH trading volumes are solid and anything is possible. But @cryptoking777 will have a better take on ETH than I do.

ETH trend from Dec 2018 to present:



At least CT1 wouldn't be obtaining ETH at a historically high price (which was A$1668 in Jan 2018):




If CT1 do sell ETH and the amount recovered is less than $463,247, I assume Penta would still be required to fund the shortfall (or return the equivalent shares at nil cost to CT1) to comply with listing rules (i.e. they have to pay the full amount for the shares they acquired which was A$561,247).

Yak.