someplay,
Rich,
You can see by the info below Rich that GTE had about $1.72MM
invested in CGI. (The 16.5MM share value plus $352K in cash)
If the proposal were approved the following would happen. The $1.4+MM that we owe CGI that is on our balance sheet would disappear. If they transfer the 66K+ shares back to GTE at todays value would be approx. $198K(66k x $3/share). The remaining 213K shares if sold by CGI and given to Joe Monterosso, head of Centerline, would erase the $481K that is due to them per the 10Q which is shown below. In essence would erase $1.9MM owed on balance sheet and have 66K shares back in teasury. So, GTE would come out over original investment and this is why the independent auditors are saying it isn't reasonable to the shareholders of CGi but OTOH it is noted by the auditors that a GTE share price at $2.50 or more provides CGI a way to pay their creditors and have working capital to boot. IMO, the higher GTE's share price is the more likely the proposal will pass..Hope that helps some...rock
(from audited annual filing)
"Pursuant to additional modifications of the agreement, the Company issued 16,500,000 restricted shares of the Company's common stock to ATC to complete the transaction as follows: (a) 10,000,000 shares, valued at $847,700, were issued to bring the investment balance to $1.2 million, and (b) an additional 6,500,000 shares, valued at $520,000 were issued to bring the investment balance to $1,720,000. These amounts were agreed to by the Company and ATC."
(from last 10Q)
"After offsetting amounts due to CSI against amounts due from CSI, consisting of the amounts due for accounts receivable collected by CSI on behalf of Centerline and for accounts receivable, pre-paid expenses and accounts payable assumed by CSI, and payments made by the Company on behalf of CSI, net of any payments made by CSI on behalf of the Company and paying CSI approximately $205,000, the balance due to CSI was $481,363 as of September 30, 2005. "
