InvestorsHub Logo
icon url

Prudent Capitalist

02/10/10 11:45 AM

#315 RE: Southern Gal #314

They are quarterly updates. This one was as of Dec. 31, 2009, and the prior one was as of Sept. 30, 2009. It would not make sense that Prescott would be selling any of its accumulated holdings. My guess, and it is just speculation, is that the selling is most likely coming from Fusion Capital on their Equity Line of Credit to the company. It is known that CTT has not in the past been cash flow positive and that the company has an equity line of credit from Fusion, whereunder it issues shares in exchange for the financing. My guess is that Fusion typically sells the shares it gets in exchange for financing over time, and there has been an increase in the shares outstanding of 270,000 shares as the comapany ramped up following FDA approval. Who knows, but my guess is that is where the selling has come from, and I do not view it as a major concern going forward.