Coretec Group Inc (CRTG)

[Gunny]

Has anyone heard of this website? It has good information unless someone can suggest a better site that is free.

https://www.otcmarkets.com/stock/CRTG/financials

[iamthe walrus]

Perhaps after the merger closes they could if the price is right .

[iamthe walrus]

Armistice has to be the one dumping recently not sure who else it could be based on public records of who owns CRTG . Are they out of the pre funded shares or just sitting back waiting for a bunch of big bid orders to dumps shares into ?? Today so far its quiet

[Juststoppingby]

Hopefully, Armistice and anybody with pre-funded shares will sell all they can before the merger closes.
I wonder if CRTG is buying back its shares.

[iamthe walrus]

Core Optics was formed July 19th 2023 so we are just looking at 5 months worth of financials for 2023 which will cut down the time it takes to audit Core Optics . The Coretec Groups audits were much quicker since they have no revenue and no products on the market. Possibly Coretec will be shipping out some materials for evaluation by the close of the merger and announce who they will be sending the anode materials to. I liked the update as Core Optics obviously has large volumn orders in for their products as they are back logged and had to hire more people and their revenue is increasing according to the news release. Where is Armistice today are they out of pre funded shares ?? Possibly as they had to be getting close as we have traded 27 million shares in 8 days.

[Testpilot]

I believe so

[stockwatcher1970]

So the June 30th completion date is attainable!

[Gunny]

Statement released says Core Optics is completing their due diligence and auditing. Should be on schedule especially if they're getting "back to work" with patent filings... Looking forward to the market reaction to this press release.

[Testpilot]

"How long are company audits?
Audits are typically scheduled for three months from beginning to end, which includes four weeks of planning, four weeks of fieldwork and four weeks of compiling the audit report. The auditors are generally working on multiple projects in addition to your audit. Feb 8, 2023"

[pegs1]

Test Pilot 🧑‍✈️, Walrus, Quick Shift, & Gunny,
Do you know if Coretec has been audited yet? Latest News said that Core Optics is working diligently on share exchange & being audited. Sure hope that Coretec has already been audited for this deal. Once audit is completed, do you know how long it will take to process all data?I don’t see this closing this month if Core Optics audit continues onward. Hopefully everything will be done by June. …….

[pegs1]

Test Pilot 🧑‍✈️, Walrus, Quick Shift, & Gunny,
Do you know if Coretec has been audited yet? Latest News said that Core Optics is working diligently on share exchange & being audited. Sure hope that Coretec has already been audited for this deal. Once audit is completed, do you know how long it will take to process all data?I don’t see this closing this month if Core Optics audit continues onward. Hopefully everything will be done by June. …….

[Trend-Setter]

Fresh NEWS! ANN ARBOR, Mich., May 02, 2024 (GLOBE NEWSWIRE) -- The Coretec Group (OTCQB: CRTG), developers of silicon anode active materials for lithium-ion batteries and cyclohexasilane (CHS) for electric vehicles (EVs), cleantech, and emerging tech applications, today announced the filing of a full utility patent application for its silicon-based battery anode development program, Endurion, and provided an update on its anticipated definitive share exchange agreement with Core Optics, LLC.

On May 1, 2024, The Coretec Group filed its full utility patent application for Endurion after filing its provisional patent application in May 2023. As previously outlined, Coretec’s team of scientists developed three distinct and novel methodologies for minimizing pulverization and increasing rate capability by creating an artificial SEI layer around the silicon nanoparticle. In the last year, testing data has shown that Endurion batteries with this unique SEI layer can extend silicon-based anode lifespan and boost energy density by enabling higher silicon loadings in lithium-ion batteries, as stated in the patent filing.

Core Optics, LLC is working diligently to meet and complete audit requirements, and has retained TAAD LLP, a PCAOB registered firm, to conduct the 2023 fiscal year audit. TAAD is highly qualified in this space, working directly with public companies including those with business operations in Asia. As due diligence and integration efforts continue, Core Optics’ revenue has grown as the Company meets the high demand from auto manufacturers and blue-chip companies for its products. The corporate headcount has also grown, predominantly in manufacturing and engineering, to meet the demand and work through its backlog.

“Our Endurion battery program is viewed with tremendous potential internally as well as within advanced technology and industry conversations, making it paramount that we protect that asset,” said Matthew Kappers, Chief Executive Officer of The Coretec Group. “This is especially true with the Core Optics agreement progressing through appropriate steps to completion, as they possess established sales channels and revenue streams from the auto manufacturers likely to evaluate Endurion. The process for this share exchange will take time, and we are appreciative of the patience from employees, partners and especially our shareholders.”

[Testpilot]

Pegs1

The due date is June 30th and yes it can be extended. The pps could drop to .0025 or lower. However, the merger is still going through and the new CRTG will have revenues

[Gunny]

267000 additional shares bought...

I look to the future with hopeful anticipation. As long as CRTG remains a viable entity my shares will rebound. I'm in this for the long haul and have the patience to wait years if need be. I don't believe it will take that long of course. At WORST I believe we'll break even...

[pegs1]

Test Pilot 🧑‍✈️,
Someone on Stocktwits posted that the share price could go down to.0025. This could affect our profits for sure. Do you think investors will hold onto their shares or panic sell if this deal doesn’t close by June 1st? My broker is going to fuss over my purchase of shares! Can Coretec & Core Optics extend their application for the merger to SEC if the deadline passes?
My broker is going to fuss at me for purchasing more shares! I hope this merger closes soon!……..

[iamthe walrus]

This is strangest trading ive ever seen . If someone puts a bid for a million shares a a very low bid and by day end the seller will sell a million shares to them at those low bids . Its happened more than once recently on low bids as it did today . If they are really wanting to sell that badly they just want out as quick as possible. . CRTG has traded about 25 million shares in the last 8 day today being the 8th day. If Armistice is the one selling and it looks like it to me then they cant have many of the pre funded warrants left . Nobody else has that many shares to trade at this time and Carlton James company has to file SEC updates every time they sell plus they im sure cant trade now as the merger closing is still ongoing ,. Armistice has to be very close . Look for more big dumps later today if they do as several bids are lined up they would sell to . Once they are out they of course have the 82 million warrants at .08 cents they can pick up i believe that are under the 144 rule trading guidelines . If we hit 10 million shares traded today we will be close to 30 million traded in 8 days . They have to be close to selling all those pre funded if it is indeed them selling very close .

[Testpilot]

New Linkedin post:

https://www.iea.org/reports/global-ev-outlook-2024/trends-in-electric-vehicle-batteries

[pegs1]

Bought 75000 shares yesterday.. I consider it extra padding in case of a reverse split! But it would be nice to go to dollar land without a reverse split!! Come on Coretec, we need a Win!

[Testpilot]

Yeah good catch Quikshft

[Quikshft]

I see the term "Short Sale" in the verbiage which is basically the sale of an insolvents holdings at fire sale prices.

[iamthe walrus]

Alright nice work on the translation to English .. not sure exactly what it all of this means but it obviously has to do with is media insolvency problems which appear to have lead to the Core Optics purchase of their product line

[Testpilot]

13. Plans for future corporate restructuring

- None


14. Other important matters related to investment decisions

1) “Total assets (KRW)” in “2. Transfer details” above is based on the consolidated financial statements as of the end of the fiscal year (December 31, 2020) prepared in accordance with the Korean International Financial Reporting Standards (K-IFRS) (Accounting Audit Opinion Appropriate) standard), and “Capital (KRW)” in “6. Counterparty” is the capital on the corporate register.

2) Of the total sale price, 14,405,784,719 won is the value of the land, and the building value is 6,733,933,091 won (excluding value-added tax).

3) The “Transfer Base Date” and “Scheduled Registration Date” in “5. Expected Transfer Date” above are based on the balance payment date, and matters regarding this schedule and sale price payment date may be changed according to agreement between the company and the transferee.

4) This disclosure is made at the point when the buyer's information is known after the buyer has paid the balance in the short sale procedure. .

9,300,000,000 South Korean won equals 6,714,956.19 USD.

[iamthe walrus]

Also another entry of importance is , " Decision on Transfer of Tangible Assets " That explanation of this filing is at the top of this page https://englishdart.fss.or.kr/dsbh001/main.do?rcpNo=20231122000358

[iamthe walrus]

Click on Occurrence of insolvency for debt payment i believe in US money it was about 9 million
https://englishdart.fss.or.kr/dsbh001/main.do?rcpNo=20231211900313 I used the advanced search at their site and scroll down to that entry . Anyone know the Korean language ??? Lots of these entries are in English

[iamthe walrus]

You van see filings about ismedia at Dart Repository of Korean Corporate filings https://englishdart.fss.or.kr/dsbb001/main.do Its out there you just have to do some searching i look again they owed like 9 million in payments etc again ill look later but it was a listed on what they owed . So thetysold off the product line and paid it. The latest financials show they have a few bucs to their name after all was said and done . I judt put in 2017 to present on the date and put ismedias name in on company search or advanced search was good as well or look at the quarterly filings . There are several searches you can do

[Quikshft]

And my intention is just to illustrate that the debt that Coretec may assume means that the number of shares to be issued is a moving target. If Dr Kim is THE owner of Core Optics, but he bought the company with a 50/50 split of cash and debt, then only about half the number of shares would need to be issued to Dr Kim compared to a scenario where he bought the company with cash outright.
I agree it will be nice when the speculation period is over and we can see the numbers and shareholders will determine how good things are from now on.

[Testpilot]

I think your analysis is accurate and I look forward to seeing this merger close and watching the new CRTG move forward.

[Quikshft]

Not going to claim any expertise in these matters, but I've watched a rodeo or two from the bleachers. If isMedia went south of the law and were de-listed, the courts probably stepped in and dictated that their holdings be sold off to help restore those who they were indebted to. Core Optics was apparently the jewel in the isMedia holdings and while those who bought it might have gotten a stellar value, it is likely they did not pay cash. That means the new owners are carrying some level of debt. I'd also say to keep in mind that just because a company is carrying some load of debt, it's not a reason it can't be highly profitable.

[Juststoppingby]

I agree, and that's why I mentioned it in a post on March 18, 2024, Post #42276.
"Also, it is highly unlikely that Core Optic is debt-free. Core Optics' long-term liability will become Coretec's. So, what are some of the 80% of the Company's Common Stock for? Guarantee? Core Optics has revenue now."
Those loans/debts should be good debt.
In March, I tried to determine how much Core Optic might have paid for the IS CCM Co Ltd product line.
IS CCM Co Ltd. > Core Optics Co., Ltd. to Core Optics LLC.

My thoughts on this: "the share exchange agreement clearly states Reverse Split." In case of a reverse split, they must state this in the agreement, meaning that, for one, the 10 million preferred shares would have to be converted before the reverse split.

[Testpilot]

It’s my understanding that a board member of isMedia embezzled money and the company was taken off the S Korean stock market in 2022. Core Optics bought the CCM calibration business and has been thriving since then.

“EMBARKING ON A NEW ERA
Core Optics LLC proudly announces the acquisition of Core Optics Co., Ltd., previously known as IS CCM Co Ltd. This strategic move not only broadens our technological horizons but also strengthens our leadership in the dynamic world of imaging technology.”

“COLLABORATION EXPERTISE: A LEGACY
Over two decades, CORE OPTICS has developed an impressive portfolio of advanced testing methodologies and a deep knowledge base, thanks to our collaborations with both niche businesses and industry titans like Samsung, Apple, Meta, Hyundai, Ford, and Lucid. These partnerships have not only broadened our expertise but have also reinforced our reputation as a beacon of innovation and reliability.“

https://www.coreoptics.us/company-overview

[Quikshft]

Core Optics was owned by that Korean company that ran into trouble and went bankrupt. The current owners had to purchase the company, perhaps out of bankruptcy but it wasn't free. Where would the purchasers get the money to buy a company like Core Optics, worth perhaps 50 to 75 million dollars? You get a loan. Hopefully Coretec can assume the terms of that liability, I bet it is way better than the interest rate you can get today.

[Testpilot]

If Core Optics has healthy profit margins, which by definition is 10%, why would we assume they have debt?

[pegs1]

Thanks guys for the information! I have to agree with Quick Shift on the potential of a reverse split. I sure hope that the merger closes in May! ……

[Quikshft]

It occured to me that Core Optics probably has some debt that has to be delt with. Interestingly, that debt could be part of the reason the deal can close without an R/S. Not holding my breath on that, the share exchange agreement clearly states Reverse Split.

Quikshft - I am pessimistic that the current principals of Core Optics could have purchased the company when it was recently sold without taking on debt. If the Coretec Group simply took responsibility for the existing debt load under the current terms, would that mean the share count that needed to be issued to the current Core Optics owners to compensate them for selling would be diminished?

ChatGPT - Yes, if Coretec Group were to assume responsibility for the existing debt of Core Optics as part of the merger, it could potentially affect the amount of compensation (in the form of shares or otherwise) that needs to be issued to the current owners of Core Optics.

Assuming that Coretec Group takes on the existing debt without modifying its terms, it would mean that Core Optics' liabilities are absorbed into Coretec Group's financial structure. This could impact Coretec Group's overall valuation and financial health, which in turn could influence the negotiation of the compensation package for the owners of Core Optics.

If Core Optics has a significant amount of debt, Coretec Group may need to issue fewer shares to the owners of Core Optics as compensation, as the assumption of debt would already represent a form of consideration in the merger transaction. Conversely, if the debt load is substantial and Coretec Group agrees to assume it, the issuance of shares may still be significant, but it would depend on various factors including the valuation of Core Optics, the terms of the debt, and the negotiation between the parties involved.

In any case, the treatment of existing debt in the merger negotiations can have implications for the overall structure and terms of the deal, and it would likely be a key aspect of the discussions between Coretec Group and the owners of Core Optics.

[Testpilot]

I concur, in the words of Matt Kappers: "To wrap up the call today, the combination of Core Optics and the Coretec Group creates a powerful organization. The overlap in customer base, operations, technologies, and personnel will yield strong results. The overall goal is to increase the value of the company by driving further development, revenue growth, and profitability. We're on track to achieve that goal."

[Gunny]

All these decisions were made before Dr. Kim. I don't think he or the board will RS unless absolutely necessary. The last board agreed to the "toxic finances" not this one. That board did so to keep the company moving forward and in that light it was in the best interests of the investor they took that gamble. I do not believe Dr. Kim and board will need to resort to such drastic financing going forward. Just like it is necessary to be successful in life a business must spend less than they make, save for the future and aquire debt as a last resort. Dr. Kim has invested a lot personally in Core Optics and The Coretec Group so I see him and the board moving to grow the business to fund the expansion. They know being financially responsible they will attract long term investors and finance the growth of this company.

[pegs1]

Test Pilot, Quick Shift, & Gunny,
With all of dumping of shares & dilution, how long will it last? How much do you think it will effect the share price with the completion of the merger?
If a reverse split is to happen, when do you expect it to occur? I think these CEO’s need to think twice before accepting toxic financing. It’s the investors who end up hurting in the long run…….

[Gunny]

If you just see the "Now" then we are diluted and depressed. If you see the investment in the "Now, Soon and Later" you will see the opportunity to buy low for new and seasoned investors as well as the removal of the corporate investors. Both are a benefit to us. Once these companies are divested and the closing is all sown up the real investors will remain and the fly by nights will move on to the next penny stock. I believe Dr Kim has a vision for this company long term. I want to be a part of that vision. That is why I broke the piggy bank and bought as much as I could because of these diluted and depressed shares that will, in my opinion, be worth much much more in less than a year. It's all perspective.

[Quikshft]

Concerning warrants at the 8 cent level.

ChatGPT

It's unlikely that Armistice Capital, or any other investor holding warrants with a strike price significantly higher than the current market price, would exercise those warrants unless there were exceptional circumstances or strategic reasons to do so. Here are a few reasons why:

In-the-Money Consideration: Warrants are typically exercised when the market price of the underlying stock is higher than the strike price of the warrants, making them "in the money." Exercising in-the-money warrants allows investors to purchase shares at a price lower than the current market price, providing an immediate profit opportunity.

Cost Consideration: Exercising warrants requires the investor to pay the strike price per share. If the market price is substantially lower than the strike price, exercising the warrants would result in an immediate loss for the investor. Therefore, it's generally more economical to wait until the market price exceeds the strike price before exercising the warrants.

Time Value: Warrants have an expiration date, after which they become worthless if not exercised. If the market price remains below the strike price and the expiration date is approaching, investors may choose to let the warrants expire rather than exercising them at a loss.

Market Conditions: Investors consider the current market conditions, including trends in the stock price, trading volume, and overall market sentiment, before deciding whether to exercise warrants. If they believe that the stock price will increase in the future, they may hold onto their warrants until the market becomes more favorable for exercise.

[Quikshft]

Chat GPT - The decision to exercise warrants, especially in the context of a pending merger, can depend on various factors and strategies employed by the hedge funds. Here are a few considerations:

Lock-up Period: If the hedge funds have a lock-up period during which they are restricted from selling shares obtained through warrant exercises, they may choose to exercise the warrants early to start the clock on the lock-up period. This allows them to plan their selling strategy and potentially take advantage of future price movements.

Risk Management: By exercising warrants early, the hedge funds may be locking in a profit or hedging against potential downside risk. If they believe that the share price could decline after the merger, exercising warrants early allows them to secure their position at a favorable price.

Liquidity Needs: The hedge funds may have immediate liquidity needs or other investment opportunities that require capital. Exercising warrants provides them with additional shares that can be sold or used as collateral for other investments.

Regulatory Considerations: There could be regulatory or compliance reasons for exercising warrants at a particular time. For example, if there are changes in tax laws or accounting regulations that affect the treatment of warrants, the hedge funds may choose to exercise them sooner rather than later.

Anticipation of Future Events: While the completion of the merger may improve the company's financial position, the hedge funds may have their own reasons for wanting to exercise warrants before the merger is finalized. They may believe that exercising warrants early allows them to capitalize on short-term price fluctuations or take advantage of arbitrage opportunities.

Ultimately, the decision to exercise warrants is based on the hedge funds' assessment of market conditions, their investment objectives, and their risk tolerance. Each hedge fund may have its own unique strategy and timeline for exercising warrants, and these decisions may not always align with the timing of the merger completion.

[iamthe walrus]

Aristice Capital looks to be the primary seller now .. According to the OTC Market site as of March 31 2024 they had 96 million warrants exercisable when CRTG OS count was 301 million . The count as of April 26th 2024 at the OTC Market site was now 315 million. That has to be Armistice receiving more shares . So 96 million minus the approx 14 million is 82 million which is the nuber of shares Armistice gets to exercise at .08 cents . According to OTCs site this is the last of the shares they have until the 82 million to be exercised at .08 cents . Since CRTG hit 51 cents 2 years ago does that count for the .08 cents mark that allows Armistice to receive those 82 million shares ?? or does it have to occur after the pre funded warrants are gone which will happen very soon as we moe to close the merger very soon as weel .

From the 10K 2023 March 17 Molliitium which is the Diversifed Alpha Fund has the exact number of shares they hold today

Other 5% Stockholders:

Diversified Alpha Fund
23,378,943 8.70 %

The Coretec Group (CRTG) Certification March 31, 2024 ( From the OTC Market website . ) So imolliitium couldnt be selling stock )
8. Officers, Directors and 5% Control Persons
Diversified Alpha Fund
Mollitium Investment Management 3rd Floor Citrus Grove, Goring Ave PO Box 10364
Grand Cayman
Diversified Alpha Fund

Diversified Alpha Fund Grand Cayman, Cayman Islands Beneficial common ownership 23,378,943 7.76% ( Same nunber of share as the 10 K from march 17 2023

[copesjc]

If by in the process of shaking out weak hands you mean being endlessly diluted then yes, totally yes

[Juststoppingby]

We are just in the process of shaking out all the weak hands. 😊

[Juststoppingby]

When Molliitium and Armistice sell, the outstanding shares will increase, and the ownership percentage will drop.

[Juststoppingby]

Yes, I think this was a combination of multiple selling by Molliitium and Armistice and panic selling, and consequently, if people had a stop loss set, the stop loss got hit.

[Testpilot]

Only Molliitium and Armistice have sold and made 28.1% and 123% profit respectively.
Also notice that Insider ownership dropped from 63.75% to 60.98% since those two entities dumped shares.

“Top 9 shareholders own 60.98% of the company
Information
Victor Keen
30.5%
>
Mollitium Investment Management
9.51%
Shares
29,956,870
Value
US$209.7k
Change %
28.1%
Portfolio %
0%
Last Reported
21 Mar 24
Armistice Capital LLC
9.51%
Shares
29,956,870
Value
US$209.7k
Change %
123%
Portfolio %
0.01%
Last Reported
21 Mar 24”

Source is Simply Wall Street App

[MEP2023]

Is it possible that these were actually stop losses that triggered and not necessarily any intentional dumping based on current circumstances vs a stop loss set up at another time.

[Gunny]

I wouldn't count CHS out just yet but Armistice like other investment companies don't run on faith. I hope we clear the field of uncommitted players before closing or they could depress the ride up.

[Juststoppingby]

The 45 million shares are directly held by Diversified Alpha Fund (DAF), which is managed and controlled by Mollitium Investment Management. They are separate from Simon Calton's 26,707,834 shares and Carlton James Ltd's 24,259,528 shares.

10-K filing.
Page 34-35
ITEM 12. SECURITY OWNERSHIP…
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
https://investors.thecoretecgroup.com/node/8421/html
Mollitium Investment Management's previous legal name was Carlton James Mollitium Investment Management.

[Quikshft]

I am confusing the two funds that invested in Coretec. Alpha Fund is Simon Calton and Testpilot discovered they are holding. Armistice is the Hedge that gave us the six million a few years ago. Keep in mind when we accepted that six million dollars that the company was peddling CHS, and Armistice invested based on that business plan. CHS obviously has not panned out and Elgammal admitted (perhaps let it slip) in that last video interview that it is too costly to compete with other silanes. It is Armistice that I doubt has a good window into the business plan surrounding Endurion, and Coretecs record with Armistice is one strike. Without knowing from the inside, they are probably taking what sure thing they can get at this point.