Major Concerns The Company would have assumably been working on its Audited financials from 2019 well before the impacts of COVID-19 were felt in mid March. The question becomes, how are ILA insiders benefitting under the guise that they needed the extension, the grace of which is now spun as insufficient.
Digitel doesn't miss an opportunity to point out "News" but he is completely mum on the past two notifications, which should scare the bujesus out of any investor. What is the "bad news" ILA is shielding for as long as possible?
Look what happened the last time audited annual financials weren't completed and trading was halted for CLY. The annual financials were never completed and the company went into receivership and all investors were stuck as bag-holders while the management team and Colin Fisher played the ASC like fools and transferred the assets to ILA in a back room deal.
Given the track record of this management team running companies into default and siphoning off assets to third parties... 2009 AppraiserLoft (Bankruptcy), 2011 ValuationVision to Kerchmeyer, 2015 ValuationVision to Zaio, 2019 ILookAbout, coupled with CLY having not actually completed audited financials since 2017 should scare the absolute devil out of any of us.
Will we all be held holding the bag on ILA when the OSC issues a cease-trade order? This is Spooky stuff.
Even spookier is the "why?". Underperformance in 4Q last year along with a complete drought of orders April 1st and statements and disclosures the management team does not want to have to published in the MD&A create a fire-storm.
Per usual, management will be selling investors on the promise of future performance, a favorite tactic Shane and Company deployed at CLY, milking along investors for three years while stating over and over (even as late as 4Q 2018) that "Breakeven is expected next quarter". This practice was used by Copeland quarter after quarter, year after year.
Given the company has stated its largest volume clients are Freddie Mac and USDA, the attached updated foreclosure moratorium update, extending out foreclosure proceedings on delinquent borrowers for 120 days means an incredible challenge to the Firm on top of the challenges it has faced since 4Q 2019.
see: https://www.csbs.org/system/files/2020-04/FederalMoratoriumConsumerForeclosuresFactSheet%28updated4-3-2020%29_0.pdf
Perhaps Colin will try some of that debt manufacturing that was brought up by the CLY Audit Committee as a "serious concern" in its letter to the Queens Court of Alberta.
All investors should be demanding:
"Will the company need to engage with one of Colin's crafty Debt Facilities or is the company in even more significant jeopardy due to questionable performance figures from Shane Copeland and Team?"
"The Company has submitted its application for a Management Cease Trade Order to the Ontario Securities Commission to allow continued trading of its securities, but for trading by management and other insiders of ILA."