This latest news is as bad as could be expected. The Banco judgement predated the La Jolla deal by months, (remember that summary judgement tucked in there with the August CE mark PR?) And even if the banco judgement didn't cause default, CTGI was in default because they couldn't afford the interest payments. This is beyond the realm of business sense. Pay 400k to borrow 125k for 10 weeks. Wow.
We all know the cat was out of the bag before the PR. I wonder how much dumping of shares was done by people associated with the company who aren't technically insiders, and thus don't have to file a Form 4. They were issued shares for their services; I'm sure one of the conditions of that service was a safe distance from any legal association with the company.
All DR had to do was sell ONE effing unit. ONE sale in a PR would have generated enough excitement and interest to stave off this wretched PPS. In truth, he could have staged a dummy sale of a handful of handsets and a generator for so much less than the hole he's dug us into now.
With all due respect Lowman, while the share structure has remained very stable, even with the 10% increase since late 2008, the amount of debt accumulated with not one dime of income has ballooned past the 20 million $$ mark. You paint DR as shrewd, successful wheeler and dealer in the world of finance. He's had AMPLE opportunity to cut a deal to generate some income from LTC. For almost a year we waited for FDA approval. There was plenty of time to cut a deal contingent on that approval being granted. Which mean 2 things:
1. Nobody wanted LTC
2. Nobody wanted LTC at Don's price.
Even if we assume #1 is false, Don has certainly blundered any possible deal. He's broke, he owes 20 + million and one of the most nefarious financing outfits in the country has exposed just how weak his position is. This is not my definition of shrewd.
next topic for discussion: if CTGI declares BK, are we all left holding the bag?
AI
