InvestorsHub Logo
Followers 7
Posts 789
Boards Moderated 0
Alias Born 11/20/2003

Re: Ovidius post# 24710

Monday, 11/24/2008 10:58:07 AM

Monday, November 24, 2008 10:58:07 AM

Post# of 35633

I think investors are trying to come to grips with the effect of this financinhg.

CTGI has authorized 80m shares of which about 42M are outstanding


The maximum dilution for the four $1.5M notes is about t
714,000 plus shares or about 3 M shares

The company did not pay a 10 - 15 broler's commission or placement for this financing as they wold have to pay for LTC 's IPO

Even many middle market established companies are having
difficulty getting financing today that are making money

Right now neither CTGI nor LTC have any revenues the
fact that they were able to get the convertible stock
to be converted at a price of $2.10 rather than $.20
should speak loudly about the future prospects of our company


Evidently DR and company thinks that the return on investment
will surpass what they will have to pay them back in shares

If the shares are below $.38 then CTGI can simply buy backkc the shares at 118% of the dollar amount converted

If the stock price falls below $.25 then that is an event
of default 6 months from now

Evidently DR and Co. think that the stock will not fall below $.25 within 6 months after they give them the money and if
La Jolla wants to get out they can convert at the lower of $2.10 or the stocks market price for 18 consecutive trading days

Evidently,DR and Company expect more than the stock price and the volume that we have now otherwise it would not be worth
the risk of dilutting the shares at these cheap prices

Does anyone have any further thoughts?


regards,
bbhuey









man


Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.