Well now that the dust has settled a bit and we've seen a reaction to the PR, I'll once again play devil's advocate here, (with the disclaimer that without this PR and new deal, the likelihood of CTGI continuing as a company was pretty grim).
1. A week ago, I owned CTGI shares. I was a partial owner of 100% of LTC and CCTI. In the future this will not be the case and, as they say, the devil of the last PR is in the details:
CTGI will cede a "considerable" amount of LTC to get that end of the biz up and running. Speculation as to the exact % associated with "considerable" is no doubt one reason the market wasn't over impressed with this news. Whatever the % of LTC taken from us current holders, I hope that the ownership deal cut with the new management team is predicated on results. My CTGI shares were diluted close to 40% (the previous 25 million issuance) so that we could pay to fly the new team to the Ukraine for a look-see. I look forward to them "putting up."
In addition, IMO, it's good bye to DR's shares, wherever they may be. By "considerably reducing" CTGI's stake in LTC, all those millions of shares the man held are, essentially, going to be traded in for pennies on the dollar. This will be true for all of us shareholders and is a reason that there will be much downward pressure in the PPS as people with big positions realize what's happening and sell out. 1/2 million shares today traded hands and we're up a penny. % wise, it's a good day, but IMO, the PPS will flounder until big holders are convinced that their positions will retain significant value after the details of the deal are revealed.
I remain confused about the CCTI spin off plans and Bruce's future role. From the PR:
Should the plan above become reality, the remaining asset of CSMG, being Carbon Capture Technologies, Inc. ("CCTI"), is targeted to be spun off as a separate public company. The current CSMG shareholders would receive a dividend in the form of shares in this new entity. Mr. K. Bruce Jones, current Chief Financial Officer of CSMG and CEO of CCTI, would remain as CEO of that company, and relinquish any position with the re-formed LTC. The plan for the 'new' CCTI is to build a new technology holding company, to find and acquire promising technologies that have the capability to become major factors in their respective markets.
There is one major difference, however, in the business model as it was practiced under Mr. Robbins and the old CSMG. That is, while it is exciting to consider the potential of finding another 'LTC', Mr. Jones and his team prefer to first find and acquire a company with an operating history, one that has a predictable stream of revenues and cash flow.
So will Bruce be the CEO of CCTI as well as CSMG? And what will CSMG be after the CCTI spinoff except a shell in search of a decent biz to partner with? Does anyone else feel like they've just stepped back in time, say about 12 years, when DR was pushing the CO2 separator? Except that then the share count was under 40 million.
Essentially, as with the LTC deal, until we know exactly how many shares of CCTI we can expect in the dividend transaction, we the holders of CCTI are looking at a return to square one: an enterprise with no money trying to get a publicly traded company up and running.
As I prefaced above, it counts for something that CTGI finally issued a PR with a plan. But where we current shareholders fit into this plan is still murky at best.
