$22 worth of equity just changed hands!

Whohoo!

Sam / Lloyd visit for meetings only;
they have no day to day roles.
They may visit more often these days just to reassure and keep the staff from being totally demoralized.

I believe it is Lloyd who is funding this;
he's got the biggest financial stake in the company.

Kassett has also dropped substantial dough into the venture;
he cannot be too happy with the current situation.
However he is an entrepreneur and knew the risks when he jumped in.
Likely, as a close friend of Vince,
his hopes were dealt a serious blow when Vince left the company.
His businesses are doing fine, so not the end of the world.
Painful, but not the end of the world.

The visit by the BoD is nothing substantial.

This is a local visit, uptown Toronto, possibly 20 minutes from Kallo office. It is not huge expensive meet/greet.

In all likelihood, they showed up to present a bigger visual impact and to reassure Ghana that the company's staff (?) hasn't disintegrated.

My relevant questions are
WHAT IS THE STATUS WITH THE OTC, GIVEN THE LACK OF UPDATES?
IF THE COMPANY IS ALIVE, WHO IS PAYING FOR THE RENT?
AND WHAT IS THE SUBSEQUENT LIQUIDITY IMPACT?
CAN IT GET LOWER THAN 0.0001?

Sam has his own legal practice;
Lloyd has been the 'angel', and is not need;
however Cecil is dependent on a Kallo paycheck.
Lloyd is likely funding Cecil/Kallo.

Where is he posting these memes?

old link.

Rest assured, RK has NOT invested $2B into Kallo.

He HAS put a fair amount of cash into the business ($1m+),
but nothing like the numbers in your link. Likely a typo.

Used to be John@KalloInc.ca

I find it difficult to believe that anyone would fund the
daily operations of a company without some assurances/expectations.

The $150k/mth payroll would not be an easy pill to swallow,
especially for so many months. Why would you/anyone do that?



More puzzled than bitter....

I know that I'd be pretty PO'd
if I was funding it and it just simply died.

Yes

His contribution is more internal than anything.

John Cecil and Vince Leitao were the only real heavyweights there;
now that Vince is no longer there, it all falls on Cecil.

Well, yes, technically they have a lawyer.
Sam has been there since the company started.
His only problem is staying awake thru an entire meeting.

To keep it in perspective,
his track record shows a jump n company/positions every 12 months or so.

Absurd.

Companies are under no obligation to pay dividends on common stock.
Any revenue generated is used for operations and organic growth.
Anything plowed back into the company materializes in higher stock valuation (hopefully!).

This applies even more so with a startup.
There is absolutely NO reason to expect dividends for a very long time.

No, it is not cheap, but it is part of their bigger growth picture. If Kallo does not come thru, the extra space will be used in different capacities, at least eventually.

I don't think it is an unmanageable risk they took on.

No, that is in the opposite direction of my daily commute.

I do know that ITD is a thriving business, with lots of large established customers. They were doing quite well, and the new facilities was to handle the growth. Kallo just happens to be part of that growth.

They are NOT dependent on Kallo.

If Kallo was to receive an advance from sales,
it would be classified as a significant (and reportable) event.

i wouldn't spend too much time on Rophe or Diamond Technologies.

Rophe was Cecil's original company name, and
DTI was little more than a shell game (with some shady characters).

Both are a part of the distant past and have no claims on Kallo.

A board position does not have daily on hand responsibilities.
With a company that has an international sales/scope,
there were likely responsibilities that needed to be discharged before a final cutoff.

Hard to conceive;
Vince/John were quite close, at least initially.
Vince is/was his right-hand man for years,
and the two trusted each other implicitly.

Thanks for the update;
I had no idea.

Vince is a go-getter, and not afraid of work or travel.
And yes, he has a pile of shares.

He is/was a key leader.

My guess is either
1) pre-emptive political move to lead a subsidiary, or
2) guven that senior management team is much bigger, possible disagreement and overruled/outvoted on strategy/tactics

That is quite surprising.

Vince has been John's right-hand man for the last 7 years;
he was his only working partner when Kallo first started.


Totally unexpected;
not sure what to make of it.

That's what I get for multitasking and not checking!

:(

But I still think the share buyback will not be from the down payment.

Well, I think the price at that point will no longer be 0.0001.

At 10 cents, a billion shares would cost $100m
At 25 cents, $40m
At 50 cents, $20m

I don't see a share buyback as a wise move from any down payment.

Well, admittedly, that is a significant act.

Note that ITD has a number of large customers already.

We would like to think the expansion is 100% due to Kallo orders;
perhaps their business was already outgrowing the old premises, and
this move was merely sped up by Kallo expectations.

Do they?

ITD has a viable business without Kallo.
And they are doing ok.

To tie your horse to Kallo by funding them is risky, and risk usually comes with a cost. They will demand equity positions / options, no?

Kallo's problem
is less on the operations side,
and more on the sales side.

They need to
a) get past the sales/marketing meetings
b) close the sale
c) get signed contracts

Cash does not come in before (c).

The question is how do they keep the lights on in the meantime?
(Other than diluting the entire s/h base on a regular basis)

And it is becoming harder to raise money via shares at this price.


We need an update, John.

Cecil has a long-term vision that includes an eventual move into infectious (?) diseases. Doesn't generate immediate cash, and will likely have a much bigger role once the mobile clinics get a foothold.

With new viruses/diseases popping up every couple of years, this is market that is not going away.

Kallo is burning thru cash;
nobody works for free without high assurances.

The question is: Whose cash are they burning thru?!


Whatever is there must end eventually.
The longer the delays, the higher the s/h risk.

The only sign we have is the fact that they are still in business
(and apparently with a large professional [expensive] headcount).

Judgement day (Boom or Bust) cannot be too far away.

FYI, ITD posted their own video for a Kallo trailer:

Geeze, with their negative equity
Google could pop by and pick everything up for a song.
Without management approval!

Pay off the $1.6m debt,
rattle a few cages in Africa,
and get things going MUCH faster.


And then ...

Oh Look - a unicorn playing with a squirrel!

well, they didn't receive the $200m;
hence the PPS meltdown in 2015.

It was a bit of a surprise to me;
He is not one to let go of any control reins.

My guess is that it is a planned move,
possibly a preparation for future political conflicts.

Sometimes it is necessary to distance yourself from certain controls
in order to open up other doors.

Future spinoffs? Financing issues?
Relocating (temporarily) to one of the client countries?

Hard to say at this point.
But there are bound to be future announcements coming up soon.
Fiscal/time crunch!

He is Cecil's right hand man;
he is *extremely* unlikely to leave.

I haven't been to their current office;
it is in the opposite direction to my current job.

The product is useful in less developed or isolated areas.
Most of Canada/US will not need, although there ARE areas.

The process of Canadian/US red tape was not appealing, and
the vision was to make quicker cash
in developing countries and continue to develop.

The product itself requires serious engineering heads,
most of which will want to be paid(!)
The need for up front cash drove most of the major decisions to date.

There ARE other products,
but they do not generate the same cash flows up front.

Without the CF, the company was forced to float a gazillion more shares, burning the older investors (like me!).

Receiving your 1st sales advance
would be considered a material event, and
therefore needs to be reported within 3 days.

A little surprising.

Vince is John's right-hand man;
he's the one that gets things done.

Stepping away from the board is puzzling.

Believe it or not, some of us had it MUCH longer.