mCloud Technologies Corp (MCLD)

[DVP25]

One thing I keep coming back to is Marin Katusa's role in all of this. The fact that Carbon Royalty loaned mCloud $15M given the state of mCloud's balance sheet, cash burn and pending debenture maturity is interesting to say the least. Katusa is not only the co-chair of Carbon Royalty, but he was also a major player involved with mCloud's debenture financing in 2019, which came due in June. According to his own sub service(*), he put up $5M of his own money as part of the financing and marketed the deal to his subscribers to fund the rest.

Katusa obviously knew the status of mCloud's financials at the time CR lent the $15M in May. He's no dummy. He had to know that those funds specifically ear-marked for the EV charging roll-out were about to be eaten up to cover operating losses. Does he still hold those debentures? If so, one could certainly raise the question of a potential conflict of interest here with the mCloud debt that he holds and the CR loan that was made. I can't believe that's the reason behind the loan though. The CR exec team and BOD is stacked with some very influential people. He somehow had to convince them that mCloud was a safe investment. I think it's probably safe to say that he wasn't anticipating the delay in the Preferred financing approval though.

So, what does Katusa and CR know that we don't? Or are they just really horrible at analyzing risk (like me apparently).

(*) https://www.theinvestorspodcast.com/wp-content/uploads/2019/12/June-2019-Katusas-Resource-Opportunities-TIP.pdf