Thanks for the correction.

Dang, how about that, first mj stock goes down - PTOG. Don't know anything about it specifically. Hopefully many more will follow its path.

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This is very interesting reading, I think we all remember this little series of suspensions --

Dang, reading the SEC complaint, those boys don't appear to have left many stones unturned when they investigated. Looks like everybody and their dog cooperated with them.

Any thoughts on why a credit card processor would even have the need for a SBLOC?

Ok, so I admit that I am guilty at times of not being the sharpest crayon in the box. So could some of you more knowledgeable types ed-u-ma-cate me on why CDFT would PR that it has had a SBLOC (standby letter of credit) deposited into its company's bank account? My mental prowess may be impaired here, but I was of the mindset that SBLOC's were an instrument of last resort? CDFT makes it read like it's a loan they can use for just about anything.

nut huh .. you didn't just do that.

Janice, agree with you. That Citadel letter just reeks of not being written by a business professional with an MBA education. Additionally, there is terminology in the letter suggesting it has been written by a writer whose native language is not the US English language.

Yeah I came across that deal after reading his Texas A&M bio. Did you read the actual note there? How the hell does a pink pay a 33% interest rate on a $450 million note? Even with $50 million scraped off the top of the loan, just the 11% interest payments are nuts. Will have to read up and see if that deal actually completed.

Looking over those docs attached to the 8k I find it a bit interesting that a guy like W. Ben King who has the family background like he does, along with the education, would find himself mixed up in this Citadel mess. Then again the cynic in me wonders if W. Ben King knows he is mixed up in this Citadel mess.
https://www.tamuc.edu/aboutUs/alumni/alumniAssociation/alumniBoard/kingW.aspx

I suggest that CERP's very own estimate of their numbers make a case for why they should be pushed into Chap 7 liquidation -- they are estimating they will barely turn a profit let alone be able to pay back any debts they owe. Break the company up and sell the assets as the company itself is signaling they aren't going to be able to do anything beyond that.

And keep in mind that is the company's ESTIMATE of income. As far as I am concerned its simply a number pulled out to cover their ESTIMATED expenses.

It's interesting to me that in the preceding twelve months the average monthly income does not support the currently ESTIMATED $350k monthly income while in BK. It strikes me as a number pulled out of the backside to match the ESTIMATED expenses and show a meager profit.

Just looking at these numbers tho it's not hard to figure out why they are in BK.

SRGE paid a small cash dividend to its shareholders back in its hey day. They even scheduled and had a second dividend payment approved, but things went to hell in a hand basket and they never funded nor paid it. It was kind of a messy affair as some were actually paid the dividend only to see it taken back later when SRGE did not pay out.

Interesting that at the time they bought ProCap, it had been in existence for a mere three months. Oh the web these companies can weave.

I've been away for many days, so not up to speed yet on the latest developments here. As far as ProCap, is this the company involved?

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Welcome to the world of post-suspension grey market trading.

So CDFT filed an 8K making their bond claims, yet also included in the filing information that clearly tells the world (and the SEC) that what they own is worthless?

I think Sheer has nothing, and that is why he could only get a potential aggregated $1 million in financing dependent on many conditions.

I'm sorry, what the AS left at after the RS? Did I read here that it was left at ~1.9 billion? If so, then do I understand this correctly -- the guy RS's the OS yet leaves the AS intact? And you want to try and justify Sheer's intentions about dilution?

Come on now, it's a grey market stock. MM's can't be making a market in it.

Exactly. I would suggest that not many here have been through a RS where they wanted out right away.

There are a couple things going on here, it's just that this board doesn't want to accept them for what they are because it doesn't fit the board's mindset. The first thing going on is normal BK progressive. Every delay, motion to grant extended time or missed filing suddenly turns into "something going on here" when the reality is nothing more than routine court matters. Individuals lack of understand of how the court process works, unfortunately, is fueling a high degree of speculation here.

The second thing going on here, and one I warned people about the night before the RS took place, is that certain segments of shareholders will be locked out of the trading process for some time while the new shares circulated in. This is distorting the volume and price as I firmly believe that once all shareholders are able to trade this company better have something on the table or it will find itself right back where it started from the night before the RS.

Based on the nature of the motion, yes, I believe a decision will be made fairly soon.

No decision on that yet. As soon as I see something, I'll post the results for all. Judge may want to chew on it for a bit before deciding.

As expected, motion to extend is granted to CERP.

Nothing yet. I'll keep checking. Judge might want to think it over before deciding.

Of course while denying all the spamming, they take the opportunity to toss in that gem about uplisting. Gotta' love 'em.

Reminder: Today at 3 pm. EST there will be a telephonic hearing where the judge will be hearing Horizon's requests. GLTA.

Why the insistence on making the request for an extension of time to file to be something more than it is? It's a normal, routine filing. For shareholders, the only acceptable response from the court about this routine extension is that it approves it. Should it not, then CERP is really in a bind when it's removed from BK and left for the wolves.

Again, this is a normal request for extended time, nothing more, nothing less. Every person or company in BK has the same right and opportunity if needed. Attempting to infer that this is a strategic move by CERP is nothing more than speculation designed to deflect attention away from the fact that CERP is in a world of hurt right now.

For the love of a higher being. Would the SEC just step in and put that company out of its misery already.

Please, lets just stop this nonsense that CERP is not in "official" BK. They filed and are in Chapter 11 BK and the court has so notified the public with its announcement. Documents are being filed daily by CERP and their creditors. Motions are being filed. There will be a hearing tomorrow at 3 pm addressing Horizon's request to force Chap 7. Once CERP filed Chap 11, they were in BK. Until a judge signs an order dismissing the filing or an order forcing Chap 7, CERP remains in Chap 11. So please, move past the idea that this is not an official BK.

Hey, when ya got $500 million laying around, what's two bucks, right?

Well, hey, they got their $2 worth. Which is the price they paid to post that "PR".

That's the part that is going to suck for a lot of people - there is going to be a certain segment of people wanting to play that are going to be locked out of trading for awhile until the shares flow through. Been there, done this a couple times with these things. When the dust settles, some are going to be looking around and asking WTF just happened and why didn't/couldn't I participate?

Her explanation kind of reminds me of the PR's some companies put out where they "wish to express" no knowledge of why all of a sudden their stock is trading heavily.

Did anyone bother to actually read the 8K? Or did the "money" aspect of it blind everyone into thinking salvation has arrived for CERP?

1) Creditor agrees to lend an aggregate amount up to $1m to CERP. That means CERP isn't getting $1m all at once, but is the max amount that will be given to CERP.

2) The DIP financing must be approved by the court.

3) The financing once again entails CERP handing over the keys to the house by pledging assets and attaching liens. Sound familiar?

4) This is a biggie straight from the doc - The DIP Credit Agreement limits, amount other things, the Company’s ability to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) prepay subordinated indebtedness and make other restricted payments, and (v) modify the terms of certain material contracts of the Company. In addition to the standard obligations, the DIP Credit Agreement, provides for periodic delivery by the Company of various financial statements set forth in the DIP Credit Agreement. Availability under the DIP Credit Agreement may be further subject to reserves and other limitations and the entry of a final order by the Bankruptcy Court.

Desperate times create desperate measures, and that's exactly what this financing is for CERP - desperate. I'm not even sure they can use the money to pay Horizon, as seems to be the prevailing thought at the moment.

GLTA

Ok guys and gals who have been around the block a few times here. What would be behind the logic of a stinky pink that just filed for Chap 11 (CERP) with a good shot at being forced into Chap 7 doing a reverse split while in BK?

I'm with you on this. I can not wrap my head around a reason why a RS would be used at this point in time.

O/S as of 4:15 pm EDT - 4,247,476,772. That looks to be about ~100m increase since the last time I checked a couple weeks ago. I wouldn't be surprised to see a significant increase in next weeks numbers.

The SEC isnt going to tell you anything above or beyond what they put in the suspension notice. They are not going to confirm or deny an ongoing or closed investigation. They are not going to comment on what they and the company may or may not have discussed. To call them day after day asking for an explanation is not only a waste of your time, but the time of people who daily has to answer the same question over and over.