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They are doing what is necessary to keep things running. Mr. Snaper is not taking rent, etc. Because they have no debt it is not a big problem yet. I doubt they keep funding required reports and financial audits forever though. Perhaps a few more Q's but if they cannot get funding before then I am sure they will have to decide how long they will wait. I am not real concerned about that.
Apparently it is because they turn the meter on everytime they run a process. They don't own the machine and are not co-located. Snaper has to make the vessels and go out to Rhode Island. They then pay TABCO for the time on the machine. It is a very ineffecient process. The only reason they didit this way is because the machine already existed so it was more cost effective for early development. If the machine were in Mr. Snapers lab they could run it and make adjustments without any logistical cost and rental cost. It takes about 10 -15 minutes to pack the vessel, load it and run the process. When you are experimenting and have to manufacturer the vessels in Vegas and run the test it RI then logistics slow the process down and the costs go up. Also bear in mind that with the original experiments they had no idea how to size the vessels or what material would work best. So they would run a test and then have to go back to the Vegas lab to manufacture new vessels. Different sizes and material compositions. Back to RI to test and repeat.
In terms of process and what needs to happen going forward it is really pretty straight forward. They need funding. They also need a "next stage" business plan. They understand what needs to happen but don't have it on paper.
As a fairly big surprise to me they are not really concerned about control. There is room with them to fund next stage operations without diluting or taking on debt because of this. In other words 50% is not a magic percentage for Mr. Snaper. He wants to move this forward and will work with investors. Good news.
I will be reaching out to contacts I know who might be potential partners. They could move forward fairly effectively on about 1.5 million. 3 million would obviously allow them to do more but not a show stopper if they can't get the full amount. If anyone else here might know some potential players I have "permission" from Mr. Snaper and David Anthony to help facilitate the process. I want to see this move forward and will work with them as I can to get it done. This truly is a game changing technology.
Also just so people are aware the margins on this process will allow the company to market at a steep discount to natural diamonds and still produce a very handsome profit margin. If you look at other synthetic diamond manufacturers you will see they struggle because they have to charge close to natural diamond prices to turn a reasonable profit. That is why some have failed and others are in the red. The magnatek process fixes that.
David Anthony is an investment banker. He put together the original group that funded the 600K. He has worked with Mr. Snaper for over two decades and helps him get funding/partners for his various patents. For some reason he has been stymied with CTDT. Apparently Mr. Prentice has been stymied as well.
Mr. Prentice is still with the company just not available at the moment. If he leaves or they part ways the company will do an 8K. A change in function could happen. Mr. Prentice does not get paid anything from CTDT at present. He works his other jobs to earn a living. He is an absolute indispensable part of the operation from a diamond industry connection perspective. He has done a tremendous amount of work putting numbers together in terms of production, pricing, markets etc. and finding partners to move product. He needs to remain but probably more in an advisory/consultant capacity.
Mr. Anthony is really the key to getting things moving forward.
LT was designated as the IR person and also as you all know handles the paperwork flow for the filings. He probably relates better from a intellectual level with Mr. Snaper than most.
More information for those interested:
The magnatek process actually creates the diamond in an 800th of a second (I thought it was and 80th). Mr. Snaper said the machines create heat that is greater than the suns. If it took much longer the machine would melt down. LOL - That is a lot of power.
Mr. Snaper fabricates the vessels for the machines. They are an aluminum alloy and get "destroyed" in the process. They are actually intact but are miss-shapen after the process. The tops are cut off to pull out the material. The vessels he showed me were about 8 inches in length and about 2 inches in diameter. That size seems to work the best so far. They completely pack the vessel with material (even using vacuum to minimize air).
The reason Mr. Snaper has not been able to complete a "recipe" is simply related to funding. The 600K they had for last year only allowed a limited number of "processes to be done". It cost thousands of dollars per process. With a machine in house he can run continuous processes and collect the data and determine the best process. The entire time he is doing this he will be producing industrial grade diamond. Once a formula is determined they can license the process as well as utilize themselves and continue R&D for more specific products.
Mr. Snaper also said the refining process will create additional patents.
You can choose to believe or not. No skin off my back. The magnatek process has the capability of doing a lot more than just industrial grade diamonds. Snaper just needs money and a machine to start refining the recipes. I am happy waiting and happy for any others who choose to wait and do well. Just as happy for those who choose not to wait. GL
Hotrod and Brad I need you guys to check your e-mail.
Hey guys - I just got in from an all night flight from Las Vegas so I will share a little information now but much more later.
First - The most important thing I can share with you is that Magnatek process is real and if they had a machine they could produce industrial grade diamonds right now. There is much room for improvement in the process however. Right now they only know that each interation of the process will produce industrial grade diamond but it is lot like mining. They don't know what they will get until they open the containers. This is not a problem with industrial grade diamonds but does limit what they can do. With 1 or more machines they could begin producing revenue and doing research simultaneously.
Second - If they were producing the industrial grade diamonds they already have someone who will purchase what they produce.
Third - Very important - What LT has been sharing on the blog is not fiction. The industrial grade diamonds are the easiest and least expensive to set up and start producing. That is why they will focus their efforts there first. Given the proper resources (money) and a little time and Mr. Snaper should be able to produce other products with the magnatek process.
Fourth - As everyone has seen they are extremely cautious about putting out forward looking statements. Mr. Snaper does not really care about the business much at all. He is all about the science. They recognize that with funding they will also need someone to mind the store from a business standpoint.
Spent 4 hours with Mr. Snaper and David Anthony. Learned a lot and can share much more later. I can tell you that there is know way I would consider selling my shares after the meeting. The potential really is there to do what everyone has speculated about for the last 18 months. Funding is the big hurdle but I believe that will get done. GLTA
Mitch - I am meeting with Mr. Snaper and David Anthony on Monday. I will take your questions with me and get what I can answered. I don't know how long I will have with them. I am hoping I can find out the long term direction of the company (especially with Mr Prentice gone). I do have a fairly long list of questions LOL!
I have tried. They won't give me a mod position. I keep calling them out for inconsistent management of posters and policy violations. They actually threatened to take my posting privileges away if I kept filing complaints. I just simply want them to do their jobs. Apparently they are happy collecting paychecks LOL.
Thanks Brad and good morning!
He is in Canada. Mr. Snaper did mention that.
His name is David Anthony. I don't have any other information on him. He called me because Mr. Snaper took my phone number down and asked him to. Mr. Snaper did not give my his info nor did he.
Hey guys - I was able to talk with the head of the Executive Committee yesterday about CTDT. He is really just kind of an advisor and was the primary person that helped put the first round of funding together for CTDT. It was nice to get a little history. Mr. Prentice was indeed hired to put the business plan together as well as funding for the organization. Everyone realizes at this point that this did not work out. The key question at this point is what does Mr. Snaper want to do. He has a lot of options. Apparently there have been offers to purchase the patent, to become a subsidiary of or make CTDT a subsidiary of another company or funding of a general nature but in terms that did not seem favorable. So Mr. Snaper will need to decide if he wants to entertain any of those types of offers or continue to seek funding to build his own company. Obviously he needs to have someone help guide him through those options and negotiations. I am not sure he knows who. I might be getting some additional information prior to meeting with him next month. I am certain now that the Q report will reveal no new information. Also part of the reason they seem to have some basic admin issues is because the Acct, law firm, report prep person (LT) and reviewers (Snaper and until recently Prentice) are all in seperate states around the country or in Canada. Not sure how that came about but if they continue they will need to work on centralizing some operations to facilitate better communications. Will pass on any new information as/if I get any.
LT would like PR's to go out. In hindsight I believe the reason LT could not get approval from Prentice on the PR's is because none of what Prentice was saying was actually reality, just hope or smokescreen to make it look like he was doing something (who knows!). You have to have news for PR's and apparently there really was not much to report unless you just wanted to pump which they have been cautious not to do (and I applaud them for this).
I am and always have been intrigued and driven by the business side and prospects of this company. Obviously I am interested in the investment because I believe it can make a lot of shareholders a lot of money. But the business potential behind this technology is staggering. My background is business planning, start-ups, funding and strategic planning. CTDT has failed so far on the very basic elements of business. It really won't take a lot to get them started producing and moving forward. It simply takes a little vision, knowledge, planning and follow through. But you have to have all four elements. My goal in visiting as well as speaking with the executive committee is to ensure they have these bases covered or are working on them. I will willingly volunteer my services to help them where I can. Producing synthetic diamonds with the large margins possible with Magnatek is in and of itself amazing and offers great business potential. The viability of these margins opens up enormous potential in a wealth of other markets as well. Add in the fact that the process produces graphene as a by-product! How can you not get excited. I want to see a lot of the endless possibilities this technology offers become reality and I won't let it go without fighting for its success. I can't think of many things I would rather do :) I hope my passion can help us all.
According to Mr. Snaper they have no debt and he does not want any debt or debt financing. I think most here need to face reality. Mr. Snaper was counting on Mr. Prentice to handle the business side of the company including obtaining financing. Apparently Mr. Prentice spoke about a lot of people lining up who were interested in funding but had not yet discussed funding parameters. It is not hard to find a lot of people interested in funding. Putting the deal together in a way that meets the desires of both parties is a completely different thing. Mr. Prentice has not been able to do this and apparently since the company is out of money he has gone elsewhere. Mr. Snaper has the patent and the proven process but cannot move forward without funding. At this point they need to reorganize and put together a plan and seek funding. It will take some time. That is what people need to come to terms with now -either hold for a while longer or take your losses and get out. I discussed some of this with Mr. Snaper this week and will hold a much more detailed conversation with him in November. My goal is to understand what the plan is to move forward and how they will execute it. Who is in charge of the plan? Who is working on funding? If they don't get funding what are their alternatives? If they don't have a plan I will find out how they intend to move forward without one. I honestly don't think you will hear any new information for a while. Hopefully I can bring back some valuable insight for everyone. I think the Q report will basically be a redo of the last one. They are out of money but have no debt. Nothing else. They do have an executive committee and I am hoping to speak with the head of that committee as well. It won't take too much to get them moving. Just needs a person in the drivers seat and some time. I think the wait will be well worth it but again if you feel your money can be working better for you somewhere else then sell and put it to use somewhere else. I don't mean that in an offensive or challenging way either. All of us really have personal decisions to make. Hold on for a while longer and hope they get their ducks in a row or move on. I don't expect to see movement here for a least another 30 days but I hope to be a catylyst for news and perhaps more with my visit. I will continue to hold long and will do anything I can personally to help Mr. Snaper and the company succeed. GLTA
Just got off the phone with Mr. Snaper. I will be in Vegas on the 18th to meet with him in person. Did not ask a lot of questions but did verify some of what Naval Nomad said. They are basically on hold until they can get some funding for machines. I hope to have some additional conversations prior to our meeting. My goal is to understand the business plan and model they have and how they plan to accomplish it.
I think you are probably right VC. Seems Snaper has a fairly tightly defined set of terms he will accept. My guess is Prentice could not bring in the funding within those parameters. Prentice does not have a background that suggest he could creatively put together the right deal. Realistically they will need to accept some debt or some dilution. There are ways to minimize the impact of both. There are also some simple steps which maximize the possibilities and potential of funding deals. Signed contracts/purchase agreements would demonstrate that the marketing analysis is valid. Production estimates or validation from Tabco would validate the ability to fulfill the sales contracts. A financial analysis based on these elements would also be valid IF they had this documentation. They may have it. I don't know. But if they don't they are making things much more difficult.
Never doubted you Hotrod. Nor do I doubt what Jay says. He is straight up. I don't think either of you have hidden agendas just very different personalities LOL. There are some on here who do though and I don't give a whit about what they say :)
Hang in there Hotrod - A bump in the road. The technology is too good to wither on the vine. I am planning on going out in the next month. Just need to verify dates and times. I am hoping to get more info to build on what Naval Nomad brought back. I know I could get funding for this project so I hope to have a realistic and constructive dialog with Mr. Snaper. He has certain restrictions on funding types and dilution which I appreciate. I don't think that Prentice had the background to put together creative financing. Just some small changes in direction and decision making and this stock could move fairly well. No reason that CTDT should not have a long and prosperous future. GLTA
My guess is the terms were not preferable to the company. Naval said Mr. Snaper did not want to take on debt but also did not want to dilute the stock. That means the financing has to be pretty creative. My personal opinion is they really (as well as investors) need to be willing to accept some dilution. There is room in the numbers for that without threatening Snapers control. The difficulty the company faces is they have no revenue to support debt financing and with stock prices around .02 then investment firms are not going to drop 2 to 3 million on the company @ $1.00 to $2.00 per share. They will not be able to get funding unless they have a comprehensive plan in place with financial pro-forma completed showing expected revenues. Included in that plan should be signed sales contracts for the product. I think that Snaper simply does not have the right kind of people and knowledge in place to take the company into production. It should be a relatively easy fix - hopefully the excom is meeting soon and will recommend the right things. I am planning to go out there and meet with him within the month. Hope I can build upon the information that Naval brought back.
My mistake - I thought this board was for discussing the merits of the stock. Apparently it is really for defaming, questioning, slandering and ridiculing other posters.
I do too Hotrod - am holding strong!
Well I am not a wealthy individual. There appear to be a few on here who might be able to stroke a check like that but I am certainly not one of them. I would be happy to offer to get funding for the company however. I have had 10 different banks lined up to give me 4 million for a pig farm (believe it or not) so I am sure I can manage 3 million on a ground breaking technology. But the company does need to answer some questions first. Snaper readily says they can make diamonds - The real question is can they currently make diamonds that are useable and marketable in their manufactured condition or is the measuring system necessary to manage specifications. My understanding is that they can make diamonds now but will be able to offer more options and better specs with the measuring system in place thereby expanding revenue and options and markets. If they can in fact make marketable diamonds now they should move to start that immediately so they can begin to bring in revenue. With a proven product and revenue stream the options for this company change dramatically for the better. It should be their first order of business unless there is some specific reason we are unaware of that keeps them from going in this direction. Honestly I could ask Snaper questions for 8 hours and probably not cover everything. My concern is that he may not know a lot of the answers. He may not even know where the diamonds are LOL!
Thanks for the info Bradlee.
LT specifically told me he personally removed Mr. Prentice from the website. I got the impression he was not told to. He just did it so I don't know if it really means anything yet.
Reading material if you are bored:
http://www.extremetech.com/extreme/167931-scientists-create-the-first-graphene-based-holographic-optical-disc
I e-mailed with LT last week. A few notes of what we discussed: They got a small amount of funding to take care of "pressing needs". Nothing substantial so they still need long term funding. Everyone was waiting for Mr. Prentice to recommend the best course of action on that funding. No one has heard from or talked with Prentice - although someone who spoke with Mr. Snaper indicated that Mr. Snaper says he has regular contact with him. So who knows what is really true. I do know that I could have 3 million in funding for this in a weeks time with no trouble so I do believe something odd is up with Prentice. Can't say what. LT is planning on going to Vegas and will be responsible for the next Q report. He is still putting pieces together and says the entire executive committee needs to meet. It did not sound like that was planned yet. It will be nice to hear the report from the person (I can't remember who) who is going to Vegas and meeting with Mr. Snaper. I am considering going out there soon as well. Still believe firmly in the potential of this company. It is obvious they have some severe management issues hindering their progress. GLTA
LT took Mr. Prentice's info down from the website.
Thanks for sharing Alpha
I am not a chart guy but I would guess they are starting to look decent.
Just a breath away from .04 - best we been in a while.
Must be new money - Or the 2.3 mill order is being filled.
So who is doing all the buying and at the ask no less?
LT e-mailed me last night that we should be getting news "soon". Not sure what that means time frame wise. He also said he had no idea what that news would be. Take it or leave it. I am just passing on what he said. I am not even going to speculate on it. Just waiting to see this play out :)
Agree Chemist - I have never gotten the hate for slapping the ask. It is like a macho thing for people. They feel less manly or something if they pay the ask. lol
Gotta be somebody who thinks this thing is headed north. Even if it was someone planning to flip you have to believe it has to go up enough to allow you to do flip that many shares without tanking the pps. Problem for him is I really doubt there are over 2 million shares people are willing to let go until the pps is much higher.
OK - I just checked in and don't see any big bids. Was there a large bid that dropped off?
Gotcha - I can't speak for them but I still have complete faith in the future of CTDT.