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if the company updated their profile, I sure hope that means that they are done with conversions.
by my records note holders only have about 1.8 million shares left. Not going to have any material impact on our journey north.
It may take a few days for retail to realize there will be no more big dumps into the bid, and if you want to get shares you will have to start hitting the ask.
I've kept the Share structure up to date in the intro.
Current is below, confirmed this morning with TA.
OS 148,966,546
Res 38,754,319
Float 110,212,227
My money is on them to do it. Guessing yours is too, if you are posting here.
They have over 3 months to get the share price back above .01. The last close over .01 was 7/19, if they don't close over .01 before 8/19 they get a notice and go on 90 day grace period so there is no danger of delist if they finish up handling the debt.
Here is the document with the rules https://www.otcmarkets.com/files/otcqb_standards.pdf.
Here is the relative snippet
----snip----
Removal of OTCQB Companies for Failure to Meet Requirements
1) OTC Markets Group may remove the Company’s securities from trading on the OTCQB market for the Company’s failure to meet the requirements set forth in Section 2 of these OTCQB Standards or any other obligations under these OTCQB Standards, which determination shall be made by OTC Markets Group in its sole and absolute discretion, unless such failure is cured within the time frames set forth below:
a. Filing Delinquency. Companies delinquent in their filings are granted a cure period of 45 calendar days from the original due date set forth in Section 2.2 (2);
b. Bid Price Deficiency. Companies are granted a cure period of 90 calendar days for failure to maintain the minimum bid price set forth in Section 2.3(2). In the event that the minimum closing bid price for the Company’s common stock falls below $0.01 per share for 30 consecutive days, a grace period of 90 calendar days to regain compliance shall begin.
OTC Markets Group Inc.
OTCQB Standards (v 3.0 May 20, 2018) Page 11 of 16
Won't hit bottom until dilution from convertible notes is complete.
Retail isn't pulling this down, only convertible notes. Company issues a ton of debt in the last 12 months to use toward auditing, filing, legal and other fees required to close Red Rock and Platinum Tax Defenders.
Now they have the revenue to get better terms on loans, but some of the notes matured and converted. This process is close to done, and we all await official word from the company regarding new debt restructuring.
And there it went, looks like over 1 million dumped through OTCX at .0045 with over 260K of that still left on the ask.
Yesterday an even larger bid (over 1 million) was swallowed up at .0054 in a few minutes. This one is lasting longer.
Based on guesses from the last financial report and conversions since it came out they had somewhere between $500,000 and $650,000 in notes that could convert when Q2 started in April.
Don't forget the notes convert at discounts of 40% to 60% of the lowest price for the past 10 days so the actual conversion price is between .0022 and .0026, so the debt payment with 24 million is more like 58K over the past week.
The 33 million converted in mid January were discounted against a higher price and should have paid about 165,000.
So they have made something like $200,000 in progress towards interest and principal through conversions in July. Probably some other conversions in May-June as well.
Regardless if all the debt converts it will be too bad, so they need to buy out the noteholders. Hopefully they are far along in that process and the conversions will end soon. Also worth noting another $400,000+ that would convert this year if they don't pay back noteholders.
So worst case is maybe 300,000K left. But I hope that the company is going to try to head off most of by securing a friendlier loan and buying it out.
I agree, every time they announce anything positive noteholders seem to come calling to get their shares and dump into the potential rally.
They announced the Platinum deal on 7/12, and had over 33 million shares get converted between 7/11 and 7/19.
Then on 7/25 the PR about their plans to fix the debt, we get a little spike in interest and since then another 23 million shares have been converted over the past 4 business days.
I'm with you that the best strategy is to aggressively deal with he convertible debt behind the scenes, and not make any material announcements publicly until it's under control.
The only exception to that would be if they got to a point where there was only a small amount of convertible debt left, and they wanted to share the light at the end the tunnel with us. Give us some incentive to buy up those last shares on the ask as they hit.
I'm sure a lot of us would do that if we knew it was the last of the dilutive noteholders conversions and the stock trading would normalize afterwards.
6.9 million new shares today from yesterday.
added just under 23 million shares since 7/26.
Share Structure Update, float over 105 million.
CDIX 7/31 11:27 AM Eastern
OS
143,724,761
Restricted
37,847,412
Float
105,877,349
That would be fantastic news.
Updated Intro with new SS as of this morning
CDIX 7/30 11:23 AM Eastern
OS 137,324,761
restricted 38,347,412
Float 98,977,349
That's only 2.6 million added on 7/27.
Based on new OS Market Cap is now 892,610 based on 7/27 close of .0065
Very busy so couldn't watch, but nice to see this close green.
Sure hope CDIX can restructure debt in time to keep this from going down low.
GLTA with $CDIX
actually the market cap is really $767,605.
Today closed at .0057 and the OS is 134,667,868. The OTC profile calculates the cap as of the last update on 7/9, so it's wrong.
honestly hope it doesn't get the there...
I swear I'm an optimist, but I'd rather expect the worst and be pleasantly surprise if it doesn't come about. The alternative is to be angry and frustrated and I can't afford the years that adds to my already decrepit looks.
I am convinced that all of this is just short term opportunity, and that a year from now it'll all be a distant memory in a chart at a much higher price.
right, thanks
OS 134,667,686
restricted 38,347,412
Float 96,320,274
12,525,970 increase, converted at either 50% or 60% discount from .0056.
So noteholders owns these shares for a strike price of low .002 range, and I would expect them to be comfortable selling down to .0032 or thereabouts.
12 million since yesterday
Share Structure Update
CDIX 7/26 3:23 PM Eastern
OS 122,141,716
Restricted 38,347,412
Float 96,320,274
QB status is pretty safe, they don't have any time pressure there. It's all about how fast they can make arrangements for the debt, and how many more conversions they are forced to do.
Yes, even a share structure double this could be healthy for this company, it's just that if it gets there through destructive CD noteholders it will be a horrible ride.
I'm hoping for no more than one more tranche of conversions and OS/Float 150,000,000/110,000,000 or less.
Best possible result they get all the debt paid off, and there aren't any more heavily discounts debt conversions ever.
That may be true, we are also one conversion tranche away from going down to .0003.
I've re read the PR and this quote tells it all:
"Management feels the company is very undervalued at its current market capitalization and is taking steps to rectify the situation so that the conversions might be greatly curtailed, if not stopped"
Any buy at these levels is a short term gamble, only because the same money may buy twice the shares next week.
Long term, these levels are a safe be in my opinion, because the company is going to come through this, and eventually be valued much higher.
No one is diluting today, sort of.
Share structure is unchanged since 7/19
CDIX 7/25 3:01 PM Easter Call to T/A
OS 122,141,716
Restricted 39,254,319
Float 82,887,397
The float on 7/9 was 49,125,420. Between 7/19 and 7/19 that number went up by 33,761,977 presumable all discounted against the .01 close on 7/9 with an average conversion price of ~.0045 per share, leaving noteholders with shares they are willing to dump down to about .0068.
As of yesterday I think about 30 million of these shares have been sold, leaving about 3.7 million in the hands of destructive diluters. From todays volume I suspect those shares are now gone. and at least 9 million of the shares traded today are retail to retail and very likely not shorts.
That is part of it.
A bigger part is that an LOI is a long way from a done deal, and every LOI they would PR that didn't close would create a perceived failure.
Whereas no communication at all, then a closed deal is all success.
You'll also notice they never PR'd for the LOI 8K that have already died off. I talked to IR about each LOI 8K from last year and two of them are off the table because after doing due diligence they would have been bad deals for CDIX. But to casual investors it just looks like a lack of follow through.
So they learned through experience that announcing an LOI can only hurt the perception of the company with potential and existing investors. Because when they don't pan out it's view as a failure, even if the truth it was a success because the deal would have damaged company / shareholder value
$CDIX
Well, we don't know (or at least legally none of should know) but at this point we have faith.
Not to sound all biblical, but this is a great quote that applies to all sorts of things we optimists are waiting for
"Faith is the assured expectation of things hoped for, the evident demonstration of realities though not beheld"
So I have faith that the company is doing what they say, and will have a PR soon showing us a path to being free of convertible debt with a Share Structure that will make traders money now, and investors like me much more money far off into to future.
sincerely GLTA with $CDIX
No worries about delist due to share price. The rule is that if the stock doesn't close over .01 for 30 consecutive days a 90 day grace period starts.
So while this isn't a risk free investment, there is a ton of upside, and the risk of delist to pink over share price isn't one to worry about. Honestly if comes to that all else will have failed and this will be dead.
OTCStandard.pdf
excerpt::
Bid Price Deficiency. Companies are granted a cure period of 90 calendar days for failure to maintain the minimum bid price set forth in Section 2.3(2). In the event that the minimum closing bid price for the Company’s common stock falls below $0.01 per share for 30 consecutive days, a grace period of 90 calendar days to regain compliance shall begin,
OTC Markets Group Inc.
OTCQB Standards (v 3.0 May 20, 2018) Page 11 of 16
during which the minimum closing bid price for the Company’s common stock must be $0.01 or greater for ten consecutive trading days. In the event that the Company’s closing bid price falls below $0.001 at any time for five consecutive trading days, the Company will be immediately removed from OTCQB.
no short squeeze IMO. any real shorts covered long ago, and any short sails showing up on the regsho now are just ex-clearing sales with the MM taking their profit...
That is a very real possibility, of course there is another path that is also a very real possibility.
I'm sure many are like me, holding a chunk, looking at this price, and waiting for some transparency from the company to give us idea of which way this will go.
To me, it looks like one or more (not all though) of their noteholder are more than willing to destroy the company. The company needs to develop and articulate a defense strategy that we can believe in, and then all bets are off.
The company needs a sense of urgency, which I think they have because another 40/50 million shares hitting the open market without some sort of plan in place will be very difficult for them to overcome.
On the plus side, they have good revenue now, and a pathway to more reasonable financing.
No real investor would criticize you for helping the company and trying to protect your investment.
I was happy when I got averaged down to .0176, now I don't even trust the debt situation enough to average down from here.
We all want them to get a solution and provide some transparency to the debt situation.
The conversion details for their debt is laid out in the annual report. You can double check my research here.
https://www.otcmarkets.com/filing/html?id=12688799&guid=H9joUpLgC7nMkyh
For the notes currently in default the terms are summarized below:
Note7-- .03 or 50% of low close for past 5 days
Note7-1-- .03 or 50% of low close for past 5 days
Note8-- .03 or 50% of low close for past 5 days
Note9-- .03 or 50% of low close for past 5 days
Note10-- .25 or 50% of low close for past 10 days
Note11-- .25 or 50% of low close for past 10 days
Note11-1-- .25 or 50% of low close for past 10 days
Note11-2-- .25 or 50% of low close for past 10 days
Note12-- .25 or 50% of low close for past 10 days
Note13-1-- 60% of low close for past 10 days
Note14-- 40% of low close for past 10 days
Note15-- 60% of low close for past 10 days
Principal balances on these notes was 651,872 as of the annual report. They have converted 8 million shares in Q1 for $87,500 against this debt according the quarterly report at which time the OS was 87,138,713. That was some principal some interest and isn't details which note or how much of either. Since then they have issue another 35,000,000 shares all after the close at .01 on 7/9 so and within 10 days of it. so we know the discounts were based on that .01 close and are either 40%, 50% or 60% depending on the note. We still don't know the details, but can estimate that was another $150,000 to $160,000 of debt & Interest. best case is about 400,000 left. It is worth noting that a few of the long defaulted notes hadn't converted anything in a while, so must be note holders friendly the company.
There are another 6 notes worth about $474,000 in principal, that are accruing interest but are not yet convertible. Their goal has to be to pay those off before they default, and try to convince the remaining note holders to let them buy the debt instead of converting.
At any rate, the conversion are base on any weighted average, they are based on the lowest trading price during the time frame agreed upon in the terms of each note as laid out in the annual report. I only hope that is limited to closing and not to intraday lows.
It's very hard to make a rationalization for buying at these levels with debt in default. It can now convert at 50% to 60% of .0056. They still have something between $250,000 and $350,000 in defaulted convertible notes based on their annual report and tracking the conversions since January. It's very possible that the noteholders may not be willing to let them buy back.
The last chunk the converted was 33 million shares, which was based on a .01 low close on 7/9, figure that was around 150 thousand. That same conversion against this close would be around 60 million shares. You can be the price will go much much lower if that many shares get converted in August.
Regardless of the company's new balance sheet, the stock is in serious trouble (economics 101). Supply is in abundance, and demand is not, because no one trusts that the share structure will stabilize until the company deals with the convertible debt and discloses the relevant details.
The best hope is another Form D just to deal with debt. Even if they announced 495 tomorrow, with the amount of outstanding debt I think we would still have a supply demand problem. Every note holder with a defaulted note would demand conversion of as much debt as they could.
Just confirmed Share Structure with the TA, and it's unchanged since 7/19
OS 114,521,575
restricted 39,254,319 shares restricted
Float 82,887,397
best estimate somewhere a little over 6 million of the new shares still in the hands of CD noteholders to sell.
Based on their conversion prices of either .004 or .005 I don't think they will go under ~.007ish to dump. I see some on the ask as .0068 which is probably note holders, since the MM is OTCX, but I would be surprised to see any big dumps below that.
yes, they own about 29 million between the three:
Daniel Thompson: 16,003,558
Alex Cunningham: 9,000,000
Rollan Robert: 4,000,000
source: OTC filings and disclosure:
https://www.otcmarkets.com/stock/CDIX/disclosure
document is the 7/10/2018 OTCQB Certification document
below is the link
https://backend.otcmarkets.com/otcapi/company/financial-report/197175/content
Well I'll say this is high volume. Previous single day high volume for CDIX was 3,074,895 on March 22, according to their twitter feed.
We've broken that record now in half a day at 3,170,172 and counting.
Link to tweet below
https://twitter.com/CardiffLex/status/973626366171103233
I've only been in this one for about 6 months, but it's one of the most unique business models I've seen, sort of making something out of nothing, and still potentially providing everyone value.
Real promise, if the get over the hump it could really grow into something substantial for years to come.
grabbed a mod spot before the b@shers show up. Been in tickers before where all the mods were of that type. Makes the conversations really one sided.....
Really nice action so far today, good to see positive reaction to news of increased revenue from existing acquisitions. Can't wait to see the reaction when the finally close some of the outstanding ones.
In case anyone is interested here is a link to that very pic. That's our CEO at the 495 office just about 2 months ago.
https://www.instagram.com/p/BiUvB1_BfRT/?utm_source=twitter