Interesting level of dilution proposed by the the CPS deal, CVI holders left with less than 3% of the company. Is this legal and wouldn't the Directors of CVI be opening themselves up for a class action, if they cannot account where all of the investors money has gone.
For example if we had a loan that was assignable to Fortitude for $10 million and this was used to pay for the coal fines project. Yet we cannot afford to pay off CPS's $600,000 loan, except by allowing a huge level of dilution. So now we are left with 3% of a coal fines project which with the consolidation and dilution proposed would be worth 0.0003c yet if we had the cash from the loan CVI would be worth 1.3c based on current capital structure.
Just thought I would spell out the logic of the deal. Do your own research and see what you think.
CVI Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
