CIBM does have debt due to preferred share holders. Their filings also indicate they are in discussions with shareholders to try to reduce that debt, etc. They cannot issue shares of common stock as that would cause dilution.
From the filings it sounds as though the CEO is trying to come up with a solution for the debt owed preferred shareholders. If OBSD has a merger then 1.75M shares of OBSD could easily move from .25 to $1 or more. Then the company would have
substantial assets and could look to some kind of an agreement
with preferred shareholders. The company and CEOs wife own a total of 90K shares of the 476K shares of preferred stock.
If you look, in all the posts I have made I made a note of the debt. Still, if and I say IF IF IF IF OBSD closes an
acquisition deal then their price goes up, and CIBMs will too.
They can sell off the OBSD stock and sit on cash.
CIBM has less than 500K shares of preferred outstanding.
Lots of stocks don't pay perferred shareholders dividends.
That seems to be the RULE not the EXCEPTION on the OTC BB/pinks
476,423 OS - 60,670 Treasury - 30K CEO Wife = 385,753 FLOAT
I own 99K shares of CIBMP personally. So now 286,753 Out
The Company continues in its principal business of seeking and financing business enterprises with the potential to generate profits and positive cash flow. The Company's previous entry into the pollution control business is part of this strategy. New opportunities were evaluated in 2001 but none were deemed appropriate to enter into.
The Company intends to continue using its available funds to purchase, invest in and sell securities as outlined in a plan approved by stockholders in 1988.
During 2001, Cadema reviewed potential acquisition opportunities, as it continued to move toward its goal to become a larger company. All negotiations failed, however, because of a continuing problem with the existence of the Company's Preferred Stock. Originally issued 13 years ago, the Preferred Stock initially paid dividends in cash, and then paid them in shares of Common Stock, as provided for in its certificate of Designation for the Preferred Stock. This practice was continued for many years until Cadema's liquidity was impaired by the losses brought on by the Cognition acquisition and its subsequent disposal. Over the past several years, Preferred Stock dividends have been accrued rather than paid, because the Company has been unable to pay dividends.
Management believes that investors understand the practical limitation on payment of dividends by a company the size of Cadema. If the Company were to issue more shares of Common Stock, in lieu of a cash dividend, at the past year's price of $.01, stockholders would be substantially diluted. Management is reviewing this situation.
In Cadema's case, all stockholders have a common interest in the value of the Common Stock. Even individuals who only purchased the Preferred Stock now have Common Stock because of dividends they received in Common Stock. Management is working toward a solution to resolve this matter pertaining to the Preferred Stock.
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