RE:Jeff Ciachursky was forced to resign by shareholders in 2016I hit post by accident before I was done, to continue...
This raises a lot of questions and red flags. In prior posts, Jeff stated that there was a shareholder fight, and also stated shareholders are responsible for driving the former Captiva (VEG) into the ground. This doesn't make sense to me, and does not stand to reason as investors do not invest with intention of burning capital.
Looking at these financial statements, I would argue that the company was already ruined from poor management of capital. Following Jeff's forced resignation by Cross Rivers, it's possible (probable?) that shareholders did not elect new management because the costs incurred were not worth the risk of additional capital.
I'm interested to hear other investor's thoughts or from those who were shareholders during these events.
FluffyTheNapkin wrote: So I came across a news release from 2016, posted by Stockwatch.com, while doing more due diligence following the latest dilution. It states that Jeff Ciachursky was voted out from his position as CEO by majority shareholders (link will be below):
Captiva Verde CEO, director Ciachurski resigns
2016-09-12 09:09 ET - News Release
Mr. Jeffrey Ciachurski reports
CAPTIVA VERDE PROVIDES CORPORATE UPDATE
Captiva Verde Industries Ltd. is providing the following corporate update.
The company s 2016 annual general meeting was initially held on Sept. 8, 2016. Even though the meeting was adjourned for another week, preliminary votes tallied indicated that a significant voting block majority from Cross River Partners voted against Jeff Ciachurski in terms of votes withheld. This vote of no confidence came three days after Cross River Partners called the chief executive officer asking for his removal. This request was verified by votes cast by Cross River Partners at the meeting.
It is clear with such a vote of disapproval from Cross River that Mr. Ciachurski hereby resigns as CEO and director, effective at the close of business on Monday, Sept. 12, 2016. Mr. Ciachurski will remain as an independent adviser to the company on matters of business development to provide advice and continuity to the massive retail opportunity Captiva has acquired through its acquisition of TGO Organics.
Since Mr. Ciachurski started commercial operations of Captiva Verde in November, 2015, the company has built the largest stand-alone 100-per-cent U.S. Department of Agriculture organic-only, vegetable harvesting land position in the United States. The company has acquired world-class vendors, customers and shareholders. Captiva's recent acquisition of TGO Organics has led to a once-in-a-lifetime opportunity to work with a major North American food retailer on a massive unique undertaking. In addition, the hiring of Ted Mills as chief operating officer has brought universal industry acceptance of Captiva through his undisputed industry credentials. Mr. Mills has submitted an immediate farm plan that leads to real-time and near-term profits if financed immediately. Further, the TSX Venture Exchange has accepted Captiva to relist, subject to an approved financial plan.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.
https://www.stockwatch.com/News/Item.aspx?bid=Z-C:VEG-2406200 Considering this no confidence vote, I then dug around for past financial reports from the previous captiva verde (VEG), and found that while the company did indeed make some sales, extreme costs were incurred that resulted in a lack of profitability:
6 months ended March 31, 2014
Sales: $0
Net Loss: $ - 989, 160
6 months ended June 30, 2015
Sales: $0
Net Loss: $ - 584,497 https://webfiles.thecse.com/filings/2015_08_28_20_08_01_VEG_Interim_Financial_Statements_Ending_June_30_2015.pdf
9 months ended june 30, 2014 Sales: $ 0
Net Loss: $ - 979,916
9 months ended Sept 30, 2015 Sales: $ 93,186
Net Loss: $ - 1,547,128
https://webfiles.thecse.com/filings/2015_11_30_10_00_44_VEG_Interim_Financial_Statements.pdf
9 months ended Sept 30, 2015 Sales: $ 93,186
Net Loss: $1,517,570
9 months ended Sept 30, 2016 Sales: $3,889,357
Net Loss: $ - 12,535,160
https://webfiles.thecse.com/Captiva_Verde_Industries_FS_Q3.pdf