Replies to post #34136 on GGToor Inc. (GTOR)

[MsCoffeenut333]

Quote: If you have been following my posts, this stock is going to get multiple entry points as John proves himself.

You sure got that right! he has proven himself many times over!! Just follow his past dealings!
Always has the next big thing!!
JW always R&R
Change names
His past speaks volumes!

[PennyHoper]

Thanks again for the post, and the reminder (to all) about the importance of due diligence.

To begin, here’s a quote from the May 21, 2022 year-end report:

2. Basis of Presentation and Going Concern
The Company has incurred net losses during the year ended May 31,2022 of $1,367,512 and has accumulated deficits of $9,259,278 as of May 31,2022. These factors, among others raise substantial doubt about the Company’s being able to continue as a going concern. To continue as a going concern, the Company plans to raise funds through private placements and/or public stock offerings although there can be no assurance that it will be successful in these efforts. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

I start with this, even though it follows the section that explains that GGToor Inc “acquired 4,144 virtual real estate parcels from TCG Gaming, BV, for $102,300,000 payable in the form of one share of Preferred Stock for each parcel acquired.”
GGToor didn’t have the cash on hand to buy those parcels; in fact, it had a lot of debt, and had to admit doubts about its ability to be successful; so it issued – i.e., printed Monopoly money in the form of – preferred shares, which it traded one share per parcel.

Each preferred share is a form of promissory note that GGToor has to either pay dividends on for as long as the shares are not redeemed, or redeem for full par value at some point, although the company claims it may do those redemptions when it chooses to (lucky for those share holders). So even though the GGToor year-end report says the company “purchased” the virtual parcels, those were no-money-down purchases. Although they list the parcels as “assets,” they are all debts until each parcel is sold.

Series D preferred shares, with par value of $600,000 have already been mentioned, but there are only 35 of those shares. Since they have all been used, that leaves 4,144-35 shares to account for, or 4,109 shares. Also note: $600,000 x 35 is $21,000,000, so this first $1.8M deal barely puts a dent in that, let alone a dent in the entire $102,300,000 that Whitman has “booked” as assets. It also only slightly offsets the $9.xM debt the company ended the year with.

In addition to Series D preferred shares, the annual report gives details on series C, E, F, G & H preferred shares, all of which (to my read) look like they are reserved for plot purchases; and apparently most of them have been used (my math indicates only a small number weren’t used). The E and F series shares have par values of $2.4M and $9.6M respectively!!!

So, in reality, the company has made no real profit at all, yet. [I admit I was a little hasty in saying this first deal netted them a $1.2M profit when the big picture is that the company is very much in debt at the moment.]

Note: I don’t have any beef with you or anyone who posts here. I’m OK with you having been a skeptic but later convinced. But it’s obvious that the ‘market’ doesn’t see value in this company yet.

You wrote:

“What makes you think that John didn't have the foresight to consider TCG may not perform and in turn create a back door, (wink, wink)”

To be honest, that makes me think of the Monty Python knights yelling, “Run Awaaaay!” after they lost to the Killer Rabbit. I hope that's not John's 'back door strategy.'

Do those plot purchases come with an ‘out clause’ that you know details of?

[continued in the next post; it seems I've hit the character limit.]