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The mgmt is a bunch of liars. Their product failed in the only human test.
From the prospectus filed yesterday, it appears BSFG so;d 650K shares/
I tried to warn all about this. Good Bye & Good Luck.
CSMG didn't renew their Texas charter or file their Texas Gross Receipts Tax return. This is the END.
They better hurry up and buy it before the SEC suspends this company too for failure to file its financials and other securities fraud - the same reasons the other penny stocks were suspended.
Even supposing that there is anything to reorganize so there could be an Chapter 11 reorganization which there is not, stockholders are wiped out. To file for Ch. 11 someone has to swear the financials are true and given the fraud no one with any knowledge could do so. Also their tax returns would have to be current. Besides CSMG does have any money to pay their atty's a retainer before nor could they do any plan that doesn't wipe out their NOL.
CSMG borrowed money and didn't pay it back. Any lender would have pursued its judgment and collection procedures as Banco Panamericano did. CSMG has no one to blame for the situation it is in but itself. It has no cash and no prospects to get any. It secretly issued 40 million shares which are coming on the market and can't even file its financials. Also I believe CCTI has lost its technology license.
Your opinion is ludicrous. CSMG borrowed money from Greenblatt's company and they didn't pay it back, got sued and lost. With respect to RTC, if you recall CSMG did a settlement with the RTC trustee to take the site and then were unable to operate it themselves. All of this is CSMG's own doing as were their false SEC filings, lies to shareholders, mysterious issuance of shares, failure to pay taxes, inability to pay license fees and numerous other failings. This has been one long Ponzi scheme going from fad to fad, first with pig manure then landfill gas, then tissue welding and now carbon dioxide absorbtion. All the wile CsSMG has been sued by myriads of parties, not just Banco Panamericano for breach of contract and lost every time.
The biggest problem here is CSMG is subject to an IRS levy and tax lien. Its assets can be seized any time the IRS feels like it. This includes LTC and CCTI stock. This is a great impediment to any financing on any terms.
I argue that he lied in SEC filings and other communications with shareholders
No. My beef was with DR and his numerous lies both in SEC filings and otherwise. CSMG is lucky to have subsequent management that could keep it out of total liquidation. I am still curious under what circumstances the 30 million shares were issued. I still believe it was fraud.
The PPS is a result of the mysterious 25 million shares issued last year coming on the market IMHO.
Why don't you also ask if the 30 million shares issued were properly lettered?
Maybe it's just DR's widow blowing out his stock or maybe one one myriad of others who received some of the 30 million shares that were issued without any publicity.
CTGI cannot do an underwriting unless its SEC filings are current which they are not.
There's to be a UCC sale of all of CSMG's assets
The amusement value is about all you'll get out of it. Investmentwise you'd be better off going to the UCC sale of all of CSMG's assets which includes all of the patents, licenses, stock in the subsidiaries and everything else. Too bad for shareholders, but you were warned.
Why would anyone want to buy CSMG stock given the order to turn over to Banco Panamericano's selling agent all of CSMG's assets?
To buy at the close per se is not fraud, but buying at the close for the purpose of marking the price is. When you say to buy for the purpose of painting the tape you are giving prima facie evidence of the intent necessary for 10b5 fraud.
Painting the tape is a felony violation of section 10b5 of the Exchange Act.
Don't forget to add that Greenblatt was completely exonerated and is the only person that was ever paid damages for malicious prosecution in the history of the securities industry. In any case what does that have to do with the fact that Banco Panamericano is enforcing its final and non-appealable judgement against CSMG?
I think it's a scam and always have. My post warning you about diversification was taken off this board as this one will be.
Item 2 is another false statement. While CSMG is indeed subject to a citation to discover assets which constrains there ability to operate, the SEC does not do prior review of filings -EVER.
WHAT"S GOING ON -
CSMG is about to have its assets seized by its judgment creditor.
Basically CSMG has three choices as I understand it:
1) Raise $1.3MM to pay the judgement by the end of next week.
2) Pay $60K and 2 million common shares for a forebearance until June 30.
3) Go out of business and give their assets to the lender.
Why would anyone pay $15MM for the LTC assets when they'd be able to buy them at Banco Panamericano's UCC sale for about $1.3MM, the amount of its judgement?
Perhaps this has something to do with the sales:
Form 8-K for CSMG TECHNOLOGIES, INC.
5-Feb-2009
Triggering Events That Accelerate or Increase a Direct Financial Obligati Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
The Registrant ("CSMG") received on February 2, 2009 a certified letter dated January 28, 2009 from La Jolla Cove Investors, Inc. ("La Jolla") declaring an event of default with respect to a 6% Convertible Debenture dated November 17, 2008 in the principal amount of $1,500,000 that matures on November 30, 2011 ("First Convertible Debenture") issued under a Securities Purchase Agreement dated November 17, 2008. Under the Securities Purchase Agreement, La Jolla paid $125,000 to CSMG and issued a Secured Promissory Note (the "First Secured Note") in the amount of $1,375,000 dated November 17, 2008 that is due and payable on demand by CSMG at any time after November 30, 2011. La Jolla stated that an event of default had occurred under the Convertible Debenture following the entry of judgment against the Company and in favor of Banco Panamericano, Inc. in the amount of $726,491.41 on December 16, 2008 and the failure of CSMG to timely pay interest under the Debenture. La Jolla claims that it is entitled to $402,629.28 under the terms of the Debenture based upon acceleration of 118% of the principal of the Debenture together with all accrued and unpaid interest to the date of payment. CSMG is not aware of any other material obligations that it has that may arise, increase, be accelerated or become a direct financial obligation as a result of the above triggering event or the increase or acceleration of the Debenture to La Jolla.
CSMG didn't file an appeal in Banco Panamericano v. CSMG within the 30 days required; how could they win?
All of CSMG's assets are pledged under this loan; they can be seized if CSMG doesn't pay.
It is called marking the stock. It is indicative of fraud.
All I see in the time and sales report is that someone marked the stock up on the close (on a hundred shares!?) as they have been for two weeks.
I only came here because the web site was recently posted on another board. Ad hominem attacks are no substitute for facts. The fact is CSMG lost and everything which they claimed in their SEC filings is BS. As for the interest time will tell. Why do you say CSMG having to pay the interest rates to which it agreed is preposterous. As I read the opinion it is CSMG's claims which are preposterous. Maybe they should have just paid the note instead of running the default interest meter and incurring legal fees.
According to the terms of CSMG's note to Banco Panamericano which is an exhibit to the complaint, the default interest is 36.5% per year. The late fees according to the same terms is 5%. According to CSMG's 10Q, the note matured April 1, 2002. CSMG also owes Banco Panmericano's attorneys' fees. Besides any interest or late fees due prior to maturity, I calculate this as $203,800 + late fees of $10,190 + interest for 6 1/2 years of $1,403,180+ attorney's fees whatever they are=$1,617170.14 + attorneys' fees. Of course CSMG can appeal, but who is going to post the bond to stay enforcement of the judgement? The complaint and summary judgement opinion are available at the web site of the US District Court of Northern Illinois.
The security agreement for the note which is also an exhibit to the complaint grants Banco Panamericano a security interest in all of CSMG's assets including the LTC stock and all of the tissue patents. If CSMG is going to survive they better figure out how to pay this. Maybe we'll see an 8K consistent with this event, maybe not.
I read yesterday that CSMG lost the collection suit by Banco Panamericano. As I read from the UCC'S BP's note is secured by all of CSMG's assets including the Live Tissue stock and assets.