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Catch the Wind Ltd V.CTW



TSXV:CTW - Post by User

Comment by j_harbaughon May 17, 2012 3:14pm
223 Views
Post# 19922186

RE: thinking

RE: thinking

The short answer is yes. The long answer is yes, plus a whole bunch of other questionable things he did as CEO with regard to company expenses. There's a reason why their past burn rate is so high and why it came down by a third in Q4 and why it will come down some more in Q1. We can't say much more about it because it's in a lawsuit but the courts will decide what was done by whom. Chances are CTW will come out on top in some way.

 

The lawsuit Rogers filed is related to the financing of the jet and is for $4.2M. If he wins, CTW takes control of it and they said they can sell it for $2M, with the $2M variance already sitting on the books as a long-term liability. CTW has two lawsuits against Rogers each around $18-$19M, one is for purchasing the jet in the first place, the other is for general breach of contract. If you look at the burn rate for the company it was about $40M for the last two years. CTW thinks $36M of that is due to Rogers activities outside of items that are directly beneficial to shareholders. So you do the math as to what the burn rate really is for the company.

 

This stock came on to my radar screen in March when Rogers was dumping. I did a ton of research into this company and remain confident we have a big winner here. 

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