Joepep7, your questions are very valid and welcomed here! It is always important to raise concerns which challenge the notion of the 'ra-ra' 'going to da moon' post. But if you'll allow me, I think I may be able to shed some clarity on some of your concerns. I don't have all the answers, but I have closely followed CDNL since early December and also talked with Mr. Jones and his admin. Chrissy on a number of occasions.
I'm not sure if you've been around CDNL that long, but many of us here have already expressed these concerns and frustrations because of the extended delays, some of the inconsistencies in information, and the slow-drag of getting business closed. So here's my best attempt to answer your concerns based upon what I've read, heard, sought, and believe:
The Cameroon and Panama deals are legitimate business items for execution, but you kind of need the background issues related to why they haven't closed. Back in 2014, Kevin was actively pursuing the closing of deals with Cameroon's government and water authorities, along with a contract inked in-principle with Panama's government as well, to provide an affordable, portable clean drinking water solution for underdeveloped regions of the respective countries. However, despite his efforts, and spending quite a bit of time traveling to each of these areas, he/the company is bound by international trading standards and regulations. So the $28.8M contract with Cameroon was contingent upon Kevin being able to obtain backing/international trade funding from the U.S. Export-Import Bank. Without this funding, they would not be able to build enough of the necessary units for a full scale roll-out in either of the countries. Therefore, the company needed to seek the initial financing to build out the units and develop enough inventory to ship worldwide. This is a considerable cost given the transportation, travel, installation, and making sure the units are up and running properly. When the Ex-Im Bank was shut down by Congress in June of 2015, it not only halted the extension of loans for international trade, but it halted opportunities for companies like CDNL to execute and facilitate business internationally.
Kevin sought numerous opportunities to go around the delayed Ex-Im shut-down, including the current opportunity with HWSV. He also lobbied for support towards the governments re-authorization of the Ex-IM bank because it was the single most pivotal opportunity for Cardinal to be self-sufficient without having to make partnership deals like the one we're seeing with the Chinese company. But like most things with government, they pushed it to the last minute and the Ex-Im bank was not re-authorized until Nov. of 2015. There's a MASSIVE backlog of request for funding, and the Ex-Im bank (from last I heard) was still in the process of selecting new board members to execute the decisions on who's awarded funding. Additionally, the maximum amount of funding being authorized for international trade was capped at $10M initially, so companies are restricted to executing any two way deals with foreign entities above the $10M mark unless they seek or bring their own external funding to fill the gap. There's where the China deal has matriculated.
Kevin was already in discussion with the Chinese company in Hangzhou to bring the Red Bird Systems to their region once the Panama deal was completed. Since a trial unit passed testing standards in Panama, it was enough evidence for the leaders of the parent company to want CDNL's technology in their region. However, with the delay in the financing and the inability to close the deal in Panama, Kevin restructured conversations with Hangzhou Sky Water Valley to be a equity partner in CDNL operations. Included in these discussions are opportunities in India, but most importantly, China's position in the Eastern part of the World, makes them a good strategic partner for manufacturing purposes. It is twice as expensive for Cardinal to manufacture Red Bird units in the U.S. and ship them overseas to Cameroon. Why specifically Cameroon? Geographically, it's further and longer freight time. But if you manufacture the units in China, the shipping and cost of distribution reduces dramatically. With this advantage, the Chinese company wasn't going to make this happen for free or good faith, but IMO worked this deal to have greater equity for the risk being incurred for this venture.
In exchange for equity financing/cash, HSWV required CDNL to give up their handling of the Cameroon contract, yet Panama will remain with CDNL as originally initiated. The 51% stake in the company doesn't give HSWV full control over the decisions being made within the company, but it does give them a seat on the board, controlling interest in future revenues, and the ability to determine the best courses of action for future ventures. Further, the 72,000,000 shares of unregistered common shares are NOT going to be a apart of the open market when the deal is struck. These shares are in-exchange for cash to get the company debt-free and to production. The reason it is split into two tranches of payments, is in-condition of Cardinal executing best business practices to meet the conditions of the contract during the receipt of the first tranche payment, therefore issuing 36,000,000 shares as collateral should CDNL fail to meet the requirements necessary to fulfill the second tranche. Once the second trache is fulfilled, based upon the current dilution (convertible notes) and the lack of a solid PPS to meet the requirements for uplisting to a higher stock exchange, Cardinal and HSWV have agreed in principle (if approved by controlling shareholders) to initiate a RS which will dramatically increase the PPS and give CDNL a greater chance for uplisting.
All of these steps are important, and it's why Kevin stated in the last PR about the many challenges ahead and the signing of the first tranche not guaranteeing success for the company. However, should these things be accomplished without delays in funding (as we're seeing now with the SAFE transaction), then CDNL is sitting on roughly $60M worth of business that awaits to be closed before the end of this year or at the latest early to mid 2017. THIS is why so many people have held LONG on this company. And most critically, those who have benefited from the drop in price by buying early benefit dramatically because the OS and FLOAT should still be roughly below 500M shares, therefore making any interment or sustaining run exciting and profitable. One important thing to think about, Kevin has expressed on repeated occasions that he can't afford for this to fail because not only is his and his wife's retirement hinging on the millions of shares they acquired at .25 PPS, but they have multiple family members that purchased shares when they were trading at .25 two years ago. I'm not sure about anyone else, but that's enough to help me understand he has some real skin in the game. Plus the company has been developing this technology for nearly a decade, so it's not a fly-by-night start-up company.
It's easily a play that can run to .03-.10 with the right buying pressure, strong hands of shareholders, and a company executing the plans. It's a risk, but OTC land is a game of 'high risk, high reward' and I've personally bet on Cardinal on 3 different occasions throughout the past months with my money, energy, and time, and I've yet to be TRULY disappointed by the return on my investment. It's not EXACTLY what I would love for it to be, but it's definitely worth it when you're dealing with the right people and the right board of investors. GLTY and I hope this was worth your time to read.
News 
Market Data 
Discover 
AI
