merchant group

This is the latest paragragh on CZD from Merchant Group latest newsletter

June was a busy month for us at Merchant punctuated by a few highlights; we executed our strategy in Calzada of effectively placing 8% of the company to private investors in Melbourne and Perth (including clients of Merchant Capital Markets). This is important as for the share price to increase we needed to deal with what is called an “overhang” in the market. An overhang occurs where the market knows there is a large seller around and therefore buyers of the company do not want to run into a wall of selling when the price increases, so naturally they stay away. After weeks of negotiation, we arranged the purchase of the sellers’ stake at $0.05 per share, the stock closed up at $0.06 per share on June 30th representing an immediate uplift of 20% for the clients (and the Fund) that participated. As this is being written, I am on a plane to Melbourne to have a tour through the Calzada facility and meet with management to establish a clear and timely path to market for their excellent technologies and products.

Might get some comments on his impression of CZD after his visit in the next newsletter.