Replies to post #5773 on Cabo Verde Capital Inc (CAPV)

[Potse]

daiello...CAPV observations.....

You still holding?

I haven't sold any of my CAPV shares yet. If things go well, I am hoping to get at least 10 cents on the bulk of my position.

I picked up some more shares in June/July of this year. There was quite a bit of churning under the 3-cent level during that time and around the revival on Nevada, and the stock felt a bit heavier than I would have expected. But it seems to be moving with a little more ease now, so maybe that churning earlier has positioned CAPV for some nice moves.

Personally, I would prefer to see John Duggan abandon the past Cabo Verde business plan and just move the company in a completely different direction. My gut feeling from a retail investor perspective is that a fresh start in a different sector might be better for the stock. But if he decides to continue with the Cabo Verde real estate, casino development, etc., hopefully he has projects/financings already lined up, basically rubber-stamped and ready to go. We definitely don't want to see a repeat of the issues that stymied the previous business plan.

There was one thing in the filings that caused my eyebrow to raise a little bit, and one thing that left me a little confused/puzzled......

Eyebrow raising: The fact that Insch Capital Management owns 3M shares of CAPV is something I find quite interesting. Insch Capital (and its CEO, Christopher Cruden) is an extremely successful asset management and hedge fund firm. They are primarily known for currency/commodity trading. The exact date/circumstances under which Insch Capital acquired those shares is not disclosed in the filing, but it appears they acquired them sometime after CAPV stopped filing in late 2015. Very interesting/unexpected to see that name on the shareholders list.

Confusing/puzzling: The fact that CAPV doesn't show any assets on its balance sheet is something that has me scratching my head a little bit. I pulled out some old notes I had made about CAPV back when I first invested in the stock, and read through some of the filings again to refresh my memory a little more.

Back in 2014, CAPV made four acquisitions of land/buildings in Cabo Verde. The acquisitions were paid for by issuing shares. The agreements on two of those acquisitions were terminated and the shares were returned to the company and cancelled. According to the last 8-K that CAPV filed in November 2015, the company continued to keep the other two acquisitions......

The Company is currently restructuring its planned resort casino project in the Republic of Cape Verde, an island country spanning an archipelago of 10 islands in the central Atlantic Ocean. The project initially involved the licensing, construction and operation of two casinos in the Republic of Cape Verde (the “Project”). As a part of our operational plan we entered into agreements with the owners of several properties that would become part of the Cape Verde Project. To acquire these properties we issued an aggregate of 282,790,000 shares of our common stock, which shares were held in escrow pending on our receiving financing commitments for the first stage of the Project and transfer of title to the Company by the owners of the properties. We will need to raise substantial additional capital for our operations through sale of equity securities and/or debt financing for the Project.

The Company has proceeded only with two of these projects, a vacation resort on the island of São Vicente and a 10ha block of land on the island of Sal, and have issued 36,040,000 shares of common stock from escrow in consideration for these acquisitions. We have terminated the agreements with the owners of the other properties, and as a result 246,750,000 shares of common stock have been released from escrow back to the Company. These shares have been returned to the Company’s transfer agent by the Company and have been cancelled. The Company is continuing to pursue the properties which were subject to termination. The implementation of these projects are predicated on the need to secure additional financing, and resolutions of issues which arose during the due-diligence process by the Company.

https://www.otcmarkets.com/filing/html?id=11013010&guid=dEG1kq6Mr6YpOyh

Those 36M shares representing the payment for the two acquisitions remain in CAPV's current 53M outstanding share count. However, CAPV's balance sheet shows zero assets. In the 2015 filings, the value of the land/buildings in those two acquisitions is entered on CAPV's balance sheet as being in excess of $6.5 million.

CAPV's current filings do not provide any explanation as to what happened to those assets.