There is nothing secretive about it
Every shareholder who invested after the proxi new exactly what the were buying ~ a company that was about to start diluting up to about 350% of its 68mill O/S.
Whoever complains about dilution itself wasnt paying attention when they bought.
Any who were investors prior to the proxi ~ had certainly purchased shares during and even larger dilution, a 7bill dilution. If they didnt know what was happenning they werent paying attention.
CEO has been very clear regarding dilution. He is going to do it.
Dilution in itself is not a bad thing. Unless The Market gets weary of it, or revenues and/or assests do not increase relative to the shares issued.
The 7Billion Share Financing almost killed the company, the Chill was a long and costly event, that still lingers and may be still costing CBAI money. It seems CBAI survived, but it definately should swerve as a wakeup to management, that The Market wont tolerate it again. Has the lesson been learned? The filing will shed some light.
The 7Billion discounted shares also being sold into the market resulted in pushing the pps to sub-penny. The Market wont tolerate this again either.
There are currently approx 109mill o/s - likely is higher by now.
This is approaching a 100% dilution since the beginning of a new round of share financing last year. CBAI has gone thru at least 1/3 of the A/S pending the next filing, in less than a year.
The Market wont tolerate this rapid a share financing without a Signifigant increase invetory and/or revenue (they go hand in hand). Organic growth and cost cutting does not and cannot generated the needed revenue fast enough to justify the rapid share finacing. The only way to achieve the needed inventory/revenue is to buy it at a discount from struggling companies, purchase a larger company with a large inventory (8ok or higher), or merge. Without one of the 3 shortly- CBAI shares will plummett, never to recover under this stock symbol.
If after the next filing there are less than 150 mill o/s shares. Then CBAI could maintain the organic growth path they seem to be on right now. But they would have to leave the remaining a/s in the treasury. If they share financing is being used for operations, then they wont be able not to use the remaining shares, will be forced to seek auth for more -- and the whole 7 billion first dilution cycle will start again. CBAI will never survive this, and it will remain the penny it currently is from now until it goes belly up, or is bought cheap.
The only way this happens is if the majority of investors are post proxi. If the majority of shareholders are pre proxi I doubt they would ever agree to more shares without a complete overhall of management, with a demand the company be sold. To the pre-proxi investor 100 shares of ccel for every 50000 CBAI share, would be better than A/s additional shares allowing CBAI to ween itself to bankruptcy.
Aggressive, or less than ideal terms, seems to have put CBAI into a Qunadry more than once. It definately cant continue much longer.
The company will need to make a choice whether to grow organically as its primary growth strategy, and throw away the key to the remaining shares in the treasury. OR they will need to either finalize one or more of the LOI's, buy signifigant inventory, or Merge.
The 7bill dilution didnt destroy the company, because it was used to build the Global footprint, and the US headquarters, both very important, for CBAI future.
It was time to fill the tanks last year to put the next piece of the puzzle in place, thus justify the proxi with a purchase of 1 of 3 opprotunities to purchase a company which would create a cash flow positive company, thus eliminating the need for share financing for operations giving the pps (and share holder investments) the much needed relief of the negative pressure of discounted shares entering the market. To date this hasnt happened.
The reason have been the chill and a low pps~ preventing quality financing terms for the planned 350% share financing described in the proxi.
The proxi was proposed and voted with the understanding the newly a/s and the r/s were designed to one bring o/s more inline with revenues, in order to attract quality financing. As well as for aquistion of profitable companies and discounted inventory.
Since the stated goal has changed to increased revenue thru organic growth, cost control and reducing burn.
This strategy cannot continue with this apparant rate of share financing. The timelines for necessary benchmarks of success dont coincide. Management has to know this.
Short of requesting additional shares(which I dont' think is their intention),the alternatives would be: to drive the company into the ground. To use the remaining A/S 140mill or less to share finance or Accretitive Dilution purchase a cash flow positive LOI(then would have to greatly reduce cost very quickly). Or Merge thru - which Accretive Dilution would be used towards CBAI. Investors would receive a 1 for X CBAI share of the stronger comapny we merge with. A CBAI investors could only hope the terms would be negotiated favorably.
I would think the biggest concern investors have for the use of the A/S shares is the risk it puts the current shares they hold will permanently be devalued thru another share correction when the 250 mill shares are used up.
I would think pre-proxi current shareholders believe the CEO should view the shares as sacrosant as most probably averaged down and have lost most of the value in their pre-proxi shares. I dont think these shareholders will so much ask anymore as to demand a thourough accounting (which will take many forms) as to the cause, the result, and the state and plan for CBAI relative to the proxi.
The key to investors at this point is to make it very clear there is no tolerence for another share correction, additional authorized shares, or lack of relative value for every A/S share utilized.
An investor cant expect to become an instant millionaire by buying a half million of a companies diluted shares,when they obviously have very limited revenue to justify the dilution.
What they can expect however is the company only use those A/S when they will bring real sustained value to the company,and use them in a way and a timeliness that allows the Market to absorb the positive use of the shares so as to put positive pressue on the pps and bring at least periodic sustained profit opprotunities for investors.
Hopefully the filing is very good news relative to o/s v revenue growth. If not shareholders should begin the process of demanding very tough answers, and very hard inventory numbers from management and an accounting for what has gone on beyond the Chill, and a low pps that is being pushed down unnaturally and indirectly by management.
I am confident in management, and think a giant leap forward for the company is about to happened. I have backed it up with share purchases. If the filings is negative relative to inventory v revenue v shares. I will have to admit my confidence in management to be able to put it together will have become much less sturdy.
All the nuiansces are over, From this filing here on, the only thing that matters to the health of your current shares, and your ability to hold onto your very cheap diluted shares until the industry takes off and CBAI pps explodes turning your half million shares into a fortune you dream of,
Is the use of shares relative to the sustained revenue generated by financing garnered from them.
There is an absoulte opprotunity to increase your current wealth tremendously with your investment in CBAI.
Google sells for approx $500/share. They are in the very lucrative business of delivering instant information to the individual. Lvl2, retail deals, tax service,family connections stock tips, concert tickets, directions, good hospitals, new tharapies...etc. the list is endless.
For the individual this is a very empowering tool, Googles pps reflects this as does their revenue.
What service good possible trump this? In the last your reports of a 95% sucess rate in Spain to bring caustic burned blind patients the return of sight via the use of stem cells.Transplant Doctors are discovering that if the organ donor supplies stem cells along with the organ, it may eliminate the need for expense,forever use of anti-rejection drugs from the receipt. Peyton Manning had stem cells injected into his neck as part of a major neck issue. Several other athletes have used stem cell therapy for other injuries. Doctors have found success in repairing heart tissue from stem cells.
There are currently literally thousands of clinical trials surrounding applications for stem cells due out by 2015. Some I mentined above are just beginning to trickle out. Scientist are discovering - useful stems cells are all over the human body. DR O'Neill adivses the Golden Chalice - replication~ the abilty to transform a stem shell into any living cell desired is not 10years but not 30 years away either.
I would think the one thing more important to an individual than empowering information, is their and loved ones a body free of disease and restrictions, throughout the course of life and the extension of that life. The pps for a company on top of that industry if Googles is 500/share is mind boggling.
All a current investor can ask the CEO once the 250mill A/S are used not have CBAI in a position where there must be a share correction or addition, or stable growth isnt signifigant. If a merger is necessary, and appropriate, it is done in away that puts the current investor in a more positve position than they had at the intitial investment.
I definatlety would rather see CBAI use the A/S to solidify itself finacially(increase inventory) then embark upon a steady cash-rich organic growth, as we come closer to the clinical results due 2015. Which if recent stem success news is any indication, the stem industry should explode, and so should CBAI pps.. IF ... well ..um.. sorry it took so long..u just read the IF.
AIMHO GLTY/A
AI
