Old Direction Fanciful Finance

I don't usually start posts on HC, preferring only to comment occasionally, but found this current topic of discussion irresistible.

To invite back the old MD and expect a "new direction" is very wishful thinking. A leopard doesn't change his spots and I note from his CV he hasn't exactly set the business world on fire since he was sacked as CEO then removed as a CTP director. I note the group promotes someone else as proposed chairman but I can't see JH staying out of the limelight as an NED. Could be a bit of a con?

I just wonder what this so called $100m funding line involves? To be honest, anyone with connections in the investment banking world can get multi-million dollar project funding on non binding MOU/Term Sheets as they are a dime a dozen. It's the actual terms and fine print that really matter and considering the current position of CTP the funders would want their pound of flesh at the expense of the shareholders.

CTP does not need $100m in any case. I think this figure was used to try and impress the retail investors and get some publicity. From my reading the figure needed is more like $40m and not all of it is needed immediately. Sure it would be nice to payout Mac Bank's debt but while CTP is meeting it's obligations there is no need.

If you go back a few years (pre Cottee) CTP embarked on a capital raising process (from memory) called "roll funding" which involved raising money in $100,000 tranches by the issue of shares for each tranche at a discount. These shares were then pumped back into the market (presumed at a profit to the funder) so he could line up at the trough for another feed. Granted, it was innovative at the time and provided regular cash but it did nothing for the share price or the strength of the register. The legacy that resulted through strategies like this was over two billion shares (in the old money) and more than 8,500 shareholders!

It's fair to say any board of CTP will be looking for finance following their appointment. I think it's insulting to us shareholders to be told of a $100m MOU is in place when no DD has been possible nor an examination done as to what finance is actually needed.

This group is using smoke and mirrors plus trying every trick in the book to get a shareholder following without having to actually do anything except put up a cheap website and make dubious promises. At least OptionCo has backing from existing large shareholders and has actually got a 249D in process. OptionCo has not tried to promote themselves with fanciful finance deals.

These guys represented by CB are also pushing a vote AGAINST campaign which OptionCo, many shareholders, HC posters and the vast majority of CPSA members believe in anyway. You watch, when the vote is lost on Thursday CB will probably claim the victory as his doing. But I don't think the vast majority of shareholders are that gullible.

Denny Crane!