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CI First Asset U.S. Tactical Sector Allocation Index ETF T.FUT



TSX:FUT - Post by User

Comment by BayWallon Oct 17, 2012 7:02pm
87 Views
Post# 20495731

RE: Game over.......

RE: Game over.......

Does look bad. Although most of the debt is held byrelated parties or insiders (see annual 2011 financial statements) some lenders may have triggered the trading halt:

 

>>>The company is in discussions with subordinated debtholders holding a principal amount of $471,463 and having a maturity of Aug. 31, 2012, but no arrangements have been made as of the date hereof.

 

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In any event, debt interest charges will continue to accumulate. More losses coming. If hardly any sign-ons in the past 6 months and this despite receiving $550,000 financing in May and $300,000 more recently, I can't see a turn around any time soon.

 

Maybe it not all Futura's fault, but the loyalty business itself is a drain on resources. It's not that easy to penetrate this competitive loyalty environment, where almost every retailer already has some sort of reward program in place.

 

There still looms the prospect of a rollback, if they even survive that long. Too many odds stacked-up against this little company. And despite David Campbell's intent to keep moving forward (today's news release), it seems like a tough up-hill battle.

 

I had almost wished they had a share/debt exchange in the news with all debt holders even with a rollback. But I guess some debt holders were not confident of Futura's future and demanded immediate payment.

 

It's ugly folks and it took 5 years to arrive here with hardly nothing to show for it, but red ink and headaches.

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